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
PETSMART INC. $63 (Nasdaq symbol PETM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 108.4 million; Market cap: $6.8 billion; Price-to-sales ratio: 1.0; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.petsmart.com) recently hit a new all-time high after it reported strong earnings and sales for its latest quarter. The stock is now up 96.9% since we first recommended it at $32 in our October 2007 issue.
The company is the biggest petsupply chain in the U.S. In all, it operates 1,241 pet stores in the U.S. and Canada. It also has 194 in-store PetsHotels, which look after pets while their owners are away.
In the first quarter of PetSmart’s 2013 fiscal year, which ended April 29, 2012, its earnings rose 33.5%, to $94.7 million from $70.9 million a year earlier. The company spent $175 million buying back its shares during the quarter. Due to fewer shares outstanding, earnings per share rose 39.3%, to $0.85 from $0.61.
...
The company is the biggest petsupply chain in the U.S. In all, it operates 1,241 pet stores in the U.S. and Canada. It also has 194 in-store PetsHotels, which look after pets while their owners are away.
In the first quarter of PetSmart’s 2013 fiscal year, which ended April 29, 2012, its earnings rose 33.5%, to $94.7 million from $70.9 million a year earlier. The company spent $175 million buying back its shares during the quarter. Due to fewer shares outstanding, earnings per share rose 39.3%, to $0.85 from $0.61.
...
NEWELL RUBBERMAID INC. $18 (New York symbol NWL; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 289.9 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.2%; TSINetwork Rating: Average; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and a number of other household items. Its top brands include Rubbermaid, Sharpie, Paper Mate, Parker, Graco, Irwin, Waterman and Levolor.
The company has three divisions: Newell Consumer (which supplies 50% of Newell’s sales and 45% of its earnings); Newell Professional (35%, 40%) and Baby and Parenting (15%, 15%). Wal-Mart accounted for 11.0% of Newell’s sales in 2011.
The company’s sales rose 1.0%, from $6.4 billion in 2007 to $6.5 billion in 2008, but the recession lowered its sales by 13.8%, to $5.6 billion, in 2009. Sales rebounded by 3.3%, to $5.8 billion, in 2010, and climbed to $5.9 billion in 2011.
...
The company has three divisions: Newell Consumer (which supplies 50% of Newell’s sales and 45% of its earnings); Newell Professional (35%, 40%) and Baby and Parenting (15%, 15%). Wal-Mart accounted for 11.0% of Newell’s sales in 2011.
The company’s sales rose 1.0%, from $6.4 billion in 2007 to $6.5 billion in 2008, but the recession lowered its sales by 13.8%, to $5.6 billion, in 2009. Sales rebounded by 3.3%, to $5.8 billion, in 2010, and climbed to $5.9 billion in 2011.
...
The Canadian penny is on its way out, and cash transactions are increasingly rare as well. Although it may not be a household name, this maker of transaction-processing software is aggressively seeking an even greater share of the market in credit card, debit card and smartphone payments. ACI WORLDWIDE (Nasdaq symbol ACIW; www.tsainc.com) makes software that is used to process transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments....
This is the latest in a series of video interviews in which Pat McKeough will give his investment advice on a variety of topics. Some will deal with his overall investment philosophy, others on specific investment strategies and still others will be comments on events that are affecting the markets and the economy. This week, the topic is the ongoing crisis in Europe, and the apparently unsolvable problems of Greece. Is it time to take some money out of the market? On the contrary, says Pat, investors who remain calm are looking at modest risk and a lot of upward potential.
Q: Pat, a socialist president was elected in France and Greece took another turn for the worse. Is it time to be taking some money out of the stock market?...
Q: Pat, a socialist president was elected in France and Greece took another turn for the worse. Is it time to be taking some money out of the stock market?...
Pat McKeough responds to many personal questions on specific stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. This past week, an Inner Circle member wondered about one of Canada’s most successful growth stocks. The shares for this athletic wear firm have done very well for this investor, but he asks Pat if he should be cautious about the high share price....
WYNDHAM WORLDWIDE $49.78 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 145.9 million; Market cap: $7.3 billion; Dividend yield: 1.8%) is one of the world’s largest hospitality companies, with 7,205 franchised hotels worldwide. Aside from Wyndham and Ramada, it owns a variety of other brands, including Days Inn, Super 8, Wingate, Baymont Inn & Suites, Microtel Inns & Suites, Hawthorn Suites, Howard Johnson, Travelodge and AmeriHost Inn.
In addition to hotels, Wyndham manages vacation resorts, rental properties, luxury clubs and time-shares. The company now has 100,000 vacation rental properties worldwide. This wide range of operations gives it more consistent cash flow than most of its competitors, which mainly focus on hotels.
Vacation travel keeps rising
...
In addition to hotels, Wyndham manages vacation resorts, rental properties, luxury clubs and time-shares. The company now has 100,000 vacation rental properties worldwide. This wide range of operations gives it more consistent cash flow than most of its competitors, which mainly focus on hotels.
Vacation travel keeps rising
...
ATLANTIC TELE-NETWORK $34.48 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.5 million; Market cap: $534.4 million; Dividend yield: 2.7%) sells telecommunications services in rural areas and other underserved areas in the U.S., Bermuda and the Caribbean region.
In the three months ended March 31, 2012, Atlantic’s revenue fell 2.8%, to $182.9 million from $194.7 million a year earlier. However, earnings jumped 107.3%, to $9.3 million, or $0.60 a share, from $4.5 million, or $0.29 a share.
In April 2010, Atlantic bought over 800,000 wireless accounts from Verizon Wireless for $200 million. These subscribers were mostly in rural parts of Georgia, Illinois, Ohio, Idaho and the Carolinas.
...
In the three months ended March 31, 2012, Atlantic’s revenue fell 2.8%, to $182.9 million from $194.7 million a year earlier. However, earnings jumped 107.3%, to $9.3 million, or $0.60 a share, from $4.5 million, or $0.29 a share.
In April 2010, Atlantic bought over 800,000 wireless accounts from Verizon Wireless for $200 million. These subscribers were mostly in rural parts of Georgia, Illinois, Ohio, Idaho and the Carolinas.
...
CHESAPEAKE ENERGY $14.04 (New York symbol CHK; TSINetwork Rating: Extra Risk) (405-848-8000; www.chkenergy.com; Shares outstanding: 659.3 million; Market cap: $9.3 billion; Dividend yield: 2.5%) is down 60.7% from its high of $35.75 last August. That’s largely because natural gas prices have fallen to near 10-year lows.
However, the drop has accelerated lately, partly on news that the company’s cofounder, CEO and chairman, Aubrey K. McClendon, took out loans that may have put him in a conflict of interest. It has also come to light that he ran a hedge fund between 2004 and 2008 that traded in the same commodities that Chesapeake produces.
The U.S. Securities and Exchange Commission (SEC) is investigating.
...
However, the drop has accelerated lately, partly on news that the company’s cofounder, CEO and chairman, Aubrey K. McClendon, took out loans that may have put him in a conflict of interest. It has also come to light that he ran a hedge fund between 2004 and 2008 that traded in the same commodities that Chesapeake produces.
The U.S. Securities and Exchange Commission (SEC) is investigating.
...
AASTRA TECHNOLOGIES $18.60 (Toronto symbol AAH; TSINetwork Rating: Speculative) (905- 760-4200; www.aastra.com; Shares outstanding: 11.9 million; Market cap: $221.3 million; Dividend yield: 4.3%) reported 9.5% lower sales in the three months ended March 31, 2012, to $147.3 million from $162.7 million a year earlier. Sales declined in all regions, including Western Europe, where Aastra gets the majority of its revenue. Even so, its earnings rose sharply, to $2 million, or $0.14 a share, from $184,000, or $0.01 a share.
Aastra needs a sustained economic recovery in Europe to raise its sales and further push up its earnings. Still, the stock trades at just 10.6 times the $1.76 a share that the company should earn in 2012. The shares yield 4.3%.
Aastra is a buy for aggressive investors.
...
Aastra needs a sustained economic recovery in Europe to raise its sales and further push up its earnings. Still, the stock trades at just 10.6 times the $1.76 a share that the company should earn in 2012. The shares yield 4.3%.
Aastra is a buy for aggressive investors.
...
ENDEAVOUR SILVER $7.67 (Toronto symbol EDR; TSINetwork Rating: Speculative) (1-877-685-9775; www.edrsilver.com; Shares outstanding: 87.8 million; Market cap: $673. million; No dividends paid) operates the Guanacevi and Guanajuato silver/gold mines in Mexico.
Endeavour is now buying two more properties in Mexico, the El Cubo mine and the Guadalupe y Calvo exploration project, from AuRico Gold (symbol AUQ on Toronto). Endeavour will pay $100 million in cash and $100 million in stock.
Under the deal, AuRico is also entitled to an additional $50 million in cash payments if certain events occur during the first three years after the sale closes.
...
Endeavour is now buying two more properties in Mexico, the El Cubo mine and the Guadalupe y Calvo exploration project, from AuRico Gold (symbol AUQ on Toronto). Endeavour will pay $100 million in cash and $100 million in stock.
Under the deal, AuRico is also entitled to an additional $50 million in cash payments if certain events occur during the first three years after the sale closes.
...