Growth Stocks
Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.
And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.
There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
Make better stock picks when you read this FREE Special Report, Canadian Growth Stocks: WestJet Stock, RioCan Stock and More.
Read More
Close
GANNETT CO., INC. $35 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 227.8 million; Market cap: $8.0 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.gannett.com) publishes newspapers in the U.S. and U.K., including USAToday, its flagship paper. The company also owns 46 TV stations and websites that attract over 39 million unique visitors a month.
In the three months ended March 29, 2015, Gannett’s revenue rose 4.9%, to $1.5 billion from $1.4 billion a year earlier. Strong gains at the broadcasting and digital divisions (49% of the total) offset an 8.8% decline at the publishing businesses (51%) due to weak ad revenue. Earnings improved 4.3%, to $0.49 a share from $0.47.
The company still plans to spin off its publishing operations as a separate firm that will keep the Gannett name. The remaining company, called Tegna (New York symbol TGNA), will own the broadcast and Internet businesses.
...
In the three months ended March 29, 2015, Gannett’s revenue rose 4.9%, to $1.5 billion from $1.4 billion a year earlier. Strong gains at the broadcasting and digital divisions (49% of the total) offset an 8.8% decline at the publishing businesses (51%) due to weak ad revenue. Earnings improved 4.3%, to $0.49 a share from $0.47.
The company still plans to spin off its publishing operations as a separate firm that will keep the Gannett name. The remaining company, called Tegna (New York symbol TGNA), will own the broadcast and Internet businesses.
...
INTERNATIONAL BUSINESS MACHINES CORP. $165 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 985.0 million; Market cap: $162.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.ibm.com) traces its history back to 1911. Today, it’s one of the world’s largest computer companies, with operations in over 175 countries. In the past few years, IBM has moved away from making computers to designing entire systems and managing them for businesses and government agencies. It provides these services under long-term contracts, which gives it predictable revenue streams. In 2014, computer services supplied 59% of the company’s revenue.
Meanwhile, IBM continues to build up its software business, which supplied 28% of its 2014 revenue.
Last year, the company sold its low-end server business to China’s Lenovo Group for $2.1 billion in cash and Lenovo shares.
...
Meanwhile, IBM continues to build up its software business, which supplied 28% of its 2014 revenue.
Last year, the company sold its low-end server business to China’s Lenovo Group for $2.1 billion in cash and Lenovo shares.
...
ATLANTIC TELE-NETWORK $70.10 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.9 million; Market cap: $1.1 billion; Dividend yield: 1.7%) owns wireless and wireline telecom operations in the U.S. Southwest, New England, New York State, Guyana, Bermuda and parts of the Caribbean islands.
The company continues to improve its technology and expand its wireless capacity and coverage. That’s paying off as customers use more mobile data for profitable services like music downloads and gaming.
The company continues to improve its technology and expand its wireless capacity and coverage. That’s paying off as customers use more mobile data for profitable services like music downloads and gaming.
Big departure from telecom
...
MENTOR GRAPHICS CORP. $24.33 (Nasdaq symbol MENT; TSINetwork Rating: Extra Risk) (503- 685-7000; www.mentor.com; Shares outstanding: 116.1 million; Market cap: $2.9 billion; Dividend yield: 0.9%) makes hardware and software for improving the design of electronic products and speeding up their development.
For example, Mentor’s software lets automakers use less wiring in a car, identify potential safety issues and minimize electromagnetic effects on sensitive components.
In the quarter ended January 31, 2015, Mentor’s revenue rose 9.5%, to $439.1 million from $401.0 million a year earlier. Excluding one-time items, earnings per share gained 18.5%, to $1.09 from $0.92.
...
For example, Mentor’s software lets automakers use less wiring in a car, identify potential safety issues and minimize electromagnetic effects on sensitive components.
In the quarter ended January 31, 2015, Mentor’s revenue rose 9.5%, to $439.1 million from $401.0 million a year earlier. Excluding one-time items, earnings per share gained 18.5%, to $1.09 from $0.92.
...
DOREL INDUSTRIES $35.02 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 32.3 million; Market cap: $1.1 billion; Dividend yield: 4.3%) (All amounts except share price and market cap in U.S. dollars) makes a number of items, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and sporting goods, mainly bicycles.
In the three months ended December 31, 2014, Dorel’s sales rose 10.7%, to $701.6 million from $633.5 million a year earlier. Sales rose 6.0% at the sports segment and 13.5% at the juvenile products division. Home furnishing sales gained 14.2%.
Excluding one-time items, earnings fell 9.1%, to $11.0 million, or $0.34 share, from $12.1 million, or $0.38. The high U.S. dollar made the company’s international sales less profitable.
...
In the three months ended December 31, 2014, Dorel’s sales rose 10.7%, to $701.6 million from $633.5 million a year earlier. Sales rose 6.0% at the sports segment and 13.5% at the juvenile products division. Home furnishing sales gained 14.2%.
Excluding one-time items, earnings fell 9.1%, to $11.0 million, or $0.34 share, from $12.1 million, or $0.38. The high U.S. dollar made the company’s international sales less profitable.
...
HECLA MINING COMPANY $3.33 (New York symbol HL; TSINetwork Rating: Extra Risk) (208-769- 4100; www.hecla-mining.com; Shares outstanding: 369.4 million; Market cap: $1.2 billion) explores for, mines and processes silver and gold in the U.S. and Mexico.
Recently, the company agreed to buy Revett Mining Company (symbol RVM on New York) for $20 million in Hecla shares.
Hecla will keep moving ahead with permitting on Revett Mining’s Rock Creek project in northwestern Montana.
...
Recently, the company agreed to buy Revett Mining Company (symbol RVM on New York) for $20 million in Hecla shares.
Hecla will keep moving ahead with permitting on Revett Mining’s Rock Creek project in northwestern Montana.
...
TEMPUR SEALY $58.80 (New York symbol TPX; TSINetwork Rating: Speculative)(800-878-8889; www.tempursealy.com; Shares outstanding: 61.0 million; Market cap: $3.5 billion; No dividends paid) continues to fend off attempts by activist investor H Partners Management to replace the company’s CEO.
H Partners, which owns 10% of Tempur Sealy’s shares, is best known for taking part in the turnaround of theme-park operator Six Flags Entertainment between 2010 and 2013. H Partners believes Tempur Sealy has performed poorly compared to other mattress makers since its 2013 purchase of Sealy Corp.
Whatever the outcome of H Partners’ investment, the activist investor’s involvement should draw attention to Tempur Sealy’s growth prospects.
...
H Partners, which owns 10% of Tempur Sealy’s shares, is best known for taking part in the turnaround of theme-park operator Six Flags Entertainment between 2010 and 2013. H Partners believes Tempur Sealy has performed poorly compared to other mattress makers since its 2013 purchase of Sealy Corp.
Whatever the outcome of H Partners’ investment, the activist investor’s involvement should draw attention to Tempur Sealy’s growth prospects.
...
RESTAURANT BRANDS INTERNATIONAL $38.99 (New York symbol QSR; TSINetwork Rating: Average) (212-333-3810; www.rbi.com; Shares outstanding: 467.0 million; Market cap: $18.2 billion; Dividend yield: 0.2%) is testing a new premium coffee blend, called Three Peaks Colombian, at five of its Tim Hortons outlets in Ontario, New Brunswick and Quebec.
This coffee comes from Colombia’s Cauca mountain region, where volcanic ash in the soil gives it what Tim Hortons describes as “a hint of caramel and a smooth finish.”
The chain will sell the new brew for 15% more than its current coffees. Right now, Tim Hortons makes its coffee from a blend of various beans from sources in different countries. This helps offset varying growing seasons, as well as local droughts and other supply disruptions.
...
This coffee comes from Colombia’s Cauca mountain region, where volcanic ash in the soil gives it what Tim Hortons describes as “a hint of caramel and a smooth finish.”
The chain will sell the new brew for 15% more than its current coffees. Right now, Tim Hortons makes its coffee from a blend of various beans from sources in different countries. This helps offset varying growing seasons, as well as local droughts and other supply disruptions.
...
CHIPOTLE MEXICAN GRILL $677.60 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.0 million; Market cap: $21.1 billion; No dividends paid) offers only naturally raised meat that comes from animals that are raised humanely, never given antibiotics or hormones and fed a pure vegetarian diet.
Chipotle had a total of 1,783 outlets at the end of 2014 and plans to add 190 to 205 more this year. However, its strict adherence to its food standards could make continued expansion increasingly difficult.
That’s because demand for natural and humanely raised livestock is growing, especially in the U.S., where fast-food chains ranging from Dunkin’ Donuts to McDonald’s are switching over. In addition, new chains using naturally raised meat, like Five Guys and Shake Shack, are expanding rapidly.
...
Chipotle had a total of 1,783 outlets at the end of 2014 and plans to add 190 to 205 more this year. However, its strict adherence to its food standards could make continued expansion increasingly difficult.
That’s because demand for natural and humanely raised livestock is growing, especially in the U.S., where fast-food chains ranging from Dunkin’ Donuts to McDonald’s are switching over. In addition, new chains using naturally raised meat, like Five Guys and Shake Shack, are expanding rapidly.
...
ADOBE SYSTEMS INC. $76.03 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 500.3 million; Market cap: $38.0 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format. Graphic designers also use its programs to create print publications and web pages.
In its fiscal 2015 first quarter, which ended February 27, 2015, Adobe earned $0.44 a share, up 46.7% from $0.30 a year earlier. Revenue gained 10.9%, to $1.11 billion from $1.00 billion.
Like Symantec, Adobe is shifting from selling software as a one-time purchase and toward a subscription model. It now gets 70% of its revenue from recurring sources, up from 52% a year ago.
...
In its fiscal 2015 first quarter, which ended February 27, 2015, Adobe earned $0.44 a share, up 46.7% from $0.30 a year earlier. Revenue gained 10.9%, to $1.11 billion from $1.00 billion.
Like Symantec, Adobe is shifting from selling software as a one-time purchase and toward a subscription model. It now gets 70% of its revenue from recurring sources, up from 52% a year ago.
...