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
DUN & BRADSTREET CORP. $117 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 36.3 million; Market cap: $4.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.dnb.com) provides credit reports on over 230 million companies. Its clients use this information to make lending and buying decisions.
Credit reports supply two thirds of Dun & Bradstreet’s revenue. The remaining third comes from other information products, including software that helps businesses manage websites and customer data.
In the quarter ended June 30, 2014, Dun & Bradstreet’s revenue rose 1.8%, to $393.0 million from $386.0 million a year earlier. Stronger demand for its credit reports and other products in North America (72% of total revenue) and Europe (16%) offset weaker sales in Asia (12%).
...
Credit reports supply two thirds of Dun & Bradstreet’s revenue. The remaining third comes from other information products, including software that helps businesses manage websites and customer data.
In the quarter ended June 30, 2014, Dun & Bradstreet’s revenue rose 1.8%, to $393.0 million from $386.0 million a year earlier. Stronger demand for its credit reports and other products in North America (72% of total revenue) and Europe (16%) offset weaker sales in Asia (12%).
...
BROADRIDGE FINANCIAL SERVICES INC. $42 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 119.5 million; Market cap: $5.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.6%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 85% of all proxy votes in the U.S.
Without one-time items, Broadridge earned $144.6 million in its fiscal 2014 fourth quarter, which ended June 30, 2014. That’s up 1.5% from $142.4 million a year earlier. Earnings per share rose 0.9%, to $1.16 from $1.15, on more shares outstanding.
Overall revenue gained 2.4%, to $885.9 million from $865.1 million. Revenue from contracts that pay recurring fees rose 7% and accounted for two-thirds of the total. The remaining third comes from one-time events, such as notifications of special shareholder meetings and sending out information when mutual funds change managers.
...
Without one-time items, Broadridge earned $144.6 million in its fiscal 2014 fourth quarter, which ended June 30, 2014. That’s up 1.5% from $142.4 million a year earlier. Earnings per share rose 0.9%, to $1.16 from $1.15, on more shares outstanding.
Overall revenue gained 2.4%, to $885.9 million from $865.1 million. Revenue from contracts that pay recurring fees rose 7% and accounted for two-thirds of the total. The remaining third comes from one-time events, such as notifications of special shareholder meetings and sending out information when mutual funds change managers.
...
STATE STREET CORP. $68 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 423.5 million; Market cap: $28.8 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to large institutional investors, like mutual funds and pension plans.
The company’s fee income rises and falls with the value of the mutual funds and other securities it administers. Thanks to improving stock markets and new contracts, its assets under custody and administration rose to $28.4 trillion as of June 30, 2014, up 10.3% from a year earlier.
These gains offset the lower interest income the company earned on bank deposits and certain securities. As a result, its overall revenue rose 3.7% in the three months ended June 30, 2014, to $2.7 billion from $2.6 billion a year earlier.
...
The company’s fee income rises and falls with the value of the mutual funds and other securities it administers. Thanks to improving stock markets and new contracts, its assets under custody and administration rose to $28.4 trillion as of June 30, 2014, up 10.3% from a year earlier.
These gains offset the lower interest income the company earned on bank deposits and certain securities. As a result, its overall revenue rose 3.7% in the three months ended June 30, 2014, to $2.7 billion from $2.6 billion a year earlier.
...
INTERNATIONAL BUSINESS MACHINES CORP. $162 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 997.6 million; Market cap: $161.6 billion; Priceto- sales ratio: 1.8; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.ibm.com) is selling its computer chip manufacturing operations to Globalfoundries Inc.
However, IBM will not get any payment for these assets. Instead, it will pay $1.5 billion to Globalfoundries to take over this money-losing business. IBM has also agreed to buy chips from Globalfoundries for the next 10 years.
This move is part of IBM’s plan to focus on its more-profitable computer services and software divisions.
...
However, IBM will not get any payment for these assets. Instead, it will pay $1.5 billion to Globalfoundries to take over this money-losing business. IBM has also agreed to buy chips from Globalfoundries for the next 10 years.
This move is part of IBM’s plan to focus on its more-profitable computer services and software divisions.
...
PROCTER & GAMBLE CO. $84 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $226.8 billion; Price-to-sales ratio: 2.9; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.pg.com) began operating in 1837 and is now one of the world’s largest makers of household and personal care products.
The company has five main business lines: fabric and home care products, such as Tide laundry detergent and Duracell batteries (32% of fiscal 2014 sales, 26% of earnings); baby and family care goods, including Pampers diapers (25%, 25%); beauty items like Olay cosmetics (24%, 23%); grooming products, including Gillette razors (10%, 17%); and health care items, such as Crest toothpaste (9%, 9%). Wal-Mart accounts for 14% of the company’s sales.
Procter’s sales rose 6.6%, from $78.9 billion in 2010 to $84.2 billion in 2013 (fiscal years end June 30). However, sales fell 1.3%, to $83.1 billion, in 2014. That’s because Procter sold 80% of its pet food business to Mars, Inc. for $2.9 billion. It expects to complete the sale of the remaining 20% in 2015.
...
The company has five main business lines: fabric and home care products, such as Tide laundry detergent and Duracell batteries (32% of fiscal 2014 sales, 26% of earnings); baby and family care goods, including Pampers diapers (25%, 25%); beauty items like Olay cosmetics (24%, 23%); grooming products, including Gillette razors (10%, 17%); and health care items, such as Crest toothpaste (9%, 9%). Wal-Mart accounts for 14% of the company’s sales.
Procter’s sales rose 6.6%, from $78.9 billion in 2010 to $84.2 billion in 2013 (fiscal years end June 30). However, sales fell 1.3%, to $83.1 billion, in 2014. That’s because Procter sold 80% of its pet food business to Mars, Inc. for $2.9 billion. It expects to complete the sale of the remaining 20% in 2015.
...
CALIAN TECHNOLOGIES $18.40 (Toronto symbol CTY; TSINetwork Rating: Speculative) (613- 599-8600; www.calian.com; Shares outstanding: 7.3 million; Market cap: $138.7 million; Dividend yield: 6.1%) operates in two areas: the business and technology services division (which supplies 70% of the company’s revenue) provides engineers, health care workers and other skilled professionals on a contract basis. The systems engineering division (30% of revenue) sells hardware and software for testing, operating and managing satellite and other communication systems.
In the three months ended June 30, 2014, the company earned $2.9 million, or $0.39 a share. That’s down 12.5% from $3.3 million, or $0.43 a share, a year earlier. Revenue declined 7.4%, to $53.8 million from $58.1 million.
Government clients add stability
...
In the three months ended June 30, 2014, the company earned $2.9 million, or $0.39 a share. That’s down 12.5% from $3.3 million, or $0.43 a share, a year earlier. Revenue declined 7.4%, to $53.8 million from $58.1 million.
Government clients add stability
...
STANTEC INC. $67.93 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 46.8 million; Market cap: $3.1 billion; Dividend yield: 1.1%) sells a range of consulting, project-delivery, design and technology services. Its clients operate in a variety of industries, including oil and gas, transportation and construction.
In the quarter ended June 30, 2014, Stantec’s revenue rose 13.0%, to $530.3 million from $469.4 million a year earlier. Earnings gained 22.6%, to $44.3 million, or $0.95 a share, from $36.1 million, or $0.78.
Timely move into Quebec
...
In the quarter ended June 30, 2014, Stantec’s revenue rose 13.0%, to $530.3 million from $469.4 million a year earlier. Earnings gained 22.6%, to $44.3 million, or $0.95 a share, from $36.1 million, or $0.78.
Timely move into Quebec
...
ZARGON OIL & GAS $6.03 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403- 264-9992; www.zargon.ca; Shares outstanding: 30.2 million; Market cap: $183.5 million; Dividend yield: 11.9%) produces natural gas and oil in Alberta, Manitoba, Saskatchewan and North Dakota. Its output is 62% oil and 38% gas.
Zargon continues to sell properties to fund high development spending at its alkaline surfactant polymer (ASP) enhanced oil recovery project at Little Bow, Alberta. ASP is a new process that floods oil wells with a chemical mixture when water is no longer effective. The alkali in the mixture penetrates the rock and frees trapped oil.
This project is costly, and it’s diverting funds from Zargon’s conventional oil drilling. That’s lowering the company’s cash flow— per-share cash flow fell 26.4% in the latest quarter, to $0.39 from $0.53 a year ago.
...
Zargon continues to sell properties to fund high development spending at its alkaline surfactant polymer (ASP) enhanced oil recovery project at Little Bow, Alberta. ASP is a new process that floods oil wells with a chemical mixture when water is no longer effective. The alkali in the mixture penetrates the rock and frees trapped oil.
This project is costly, and it’s diverting funds from Zargon’s conventional oil drilling. That’s lowering the company’s cash flow— per-share cash flow fell 26.4% in the latest quarter, to $0.39 from $0.53 a year ago.
...
BELLATRIX EXPLORATION $5.24 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403- 266-8670; www.bellatrixexploration.com; Shares outstanding: 191.1 million; Market cap: $1.1 billion; No dividends paid) is now trading on the New York Stock Exchange, also under the BXE symbol.
Bellatrix originally listed its common shares on the NYSE MKT (formerly the American Stock Exchange) on September 20, 2012. Switching to the main New York exchange should raise its profile and increase its liquidity.
The company has also formed a new joint venture with Grafton Asset Management. Under the deal, Grafton will contribute $250 million toward the development of some of Bellatrix’s extensive landholdings in Alberta. Bellatrix will also commit $250 million. To put that in context, Bellatrix’s cash flow was $148.7 million, or $0.84 a share, in the first half of 2014.
...
Bellatrix originally listed its common shares on the NYSE MKT (formerly the American Stock Exchange) on September 20, 2012. Switching to the main New York exchange should raise its profile and increase its liquidity.
The company has also formed a new joint venture with Grafton Asset Management. Under the deal, Grafton will contribute $250 million toward the development of some of Bellatrix’s extensive landholdings in Alberta. Bellatrix will also commit $250 million. To put that in context, Bellatrix’s cash flow was $148.7 million, or $0.84 a share, in the first half of 2014.
...
ATLANTIC TELE-NETWORK $58.52 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.9 million; Market cap: $914.6 million; Yield: 2.0%) raised its quarterly dividend by 7.4%, to $0.29 a share from $0.27, with the October 2014 payment. It now yields 2.0%.
Atlantic closed the sale of its Alltel wireless business to AT&T (symbol T on New York) late last year. It now holds cash of $407.6 million, or $24.64 a share, and has paid off its $271.1 million of debt.
The company could use its high cash balance to make acquisitions or expand its remaining operations. It could also make further dividend increases or pay special dividends.
...
Atlantic closed the sale of its Alltel wireless business to AT&T (symbol T on New York) late last year. It now holds cash of $407.6 million, or $24.64 a share, and has paid off its $271.1 million of debt.
The company could use its high cash balance to make acquisitions or expand its remaining operations. It could also make further dividend increases or pay special dividends.
...