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.
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H.J. Heinz Co., symbol HNZ on New York, continues to see strong demand for its foods in China, Brazil and other fast-growing markets. The company now gets 70% of its sales from outside the U.S. Heinz is one of the stocks we analyze in Wall Street Stock Forecaster, our newsletter for U.S.A. stock market investing. Strong demand from overseas markets pushed up Heinz’s sales by 14.9% in the three months ended July 27, 2011, to $2.8 billion from $2.5 billion a year earlier. Emerging markets accounted for 23% of sales, up from 18% a year earlier. The company also raised its selling prices to offset rising ingredient costs....
Stantec, Inc., symbol STN on Toronto, sells a range of consulting, project delivery, design/build and technology services. The company’s clients operate in a number of markets, including industry, environment, transportation and construction. Stantec is one of the growth stocks we analyze in Stock Pickers Digest. The company has over 11,000 employees in 170 locations throughout North America. It also has four international offices....
Pason Systems, symbol PSI on Toronto, rents equipment that its customers use to monitor and manage land-based oil rigs. Pason is one of the technology stocks we analyze in Stock Pickers Digest, our newsletter that recommends stocks for the part of your portfolio you devote to aggressive investing. It also provides communication systems, such as its satellite system, which companies use to remotely collect data from their drilling operations. Pason serves oil and gas companies and drilling contractors throughout Canada, the U.S., Mexico and Argentina....
The research we do for members of our Inner Circle service turns up many intriguing stories on growth stocks, often in the ultra-competitive high-tech world. Here’s a question about the prospects of Sirius XM Radio (symbol SIRI on Nasdaq) from our latest weekly Inner Circle Q&A, in which I answer questions from our members. Sirius has a big customer base, but it’s not that easy to outdistance the competition. In our search for growth stocks, we look for a strong market position. And if Sirius can hold its current position, it will fit our profile for growth stocks. But that’s not guaranteed. ...
Metro Inc., Toronto symbol MRU.A, is Canada’s third-largest supermarket operator, after Loblaw and Sobeys. Metro has about 600 supermarkets in Quebec and Ontario.
Metro is one of the growth stocks we analyze in our Successful Investor newsletter.
In the three months ended July 2, 2011, the growth stock’s sales rose 0.4%, to $3.58 billion from $3.56 billion a year earlier....
Metro is one of the growth stocks we analyze in our Successful Investor newsletter.
In the three months ended July 2, 2011, the growth stock’s sales rose 0.4%, to $3.58 billion from $3.56 billion a year earlier....
The Canadian consumer sector is highly competitive. Aside from other domestic retailers, Canadian retailers face rising competition from large U.S. discount retailers, like Wal-Mart and Costco. In addition, popular U.S. retailer Target is now expanding into Canada, and will begin opening its Canadian stores in early 2013. As well, consumer stocks are more exposed to swings in the overall economy than companies in some other sectors, such as utilities.
Aggressive portfolio: Smaller retailers entail greater risk, but offer the potential for strong gains
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We come across a number of timely buys and sells when we’re researching stocks for members of our Inner Circle service. Here’s a particularly interesting question about SmartHeat (symbol HEAT on Nasdaq) from our latest weekly Inner Circle Q&A, in which I answer specific questions from our members. Like Sino-Forest, SmartHeat is a Chinese reverse-takeover (RTO) stock. Q: Pat: Would you please take a look at SmartHeat? Thanks....
Intel Corp., symbol INTC on Nasdaq, is the world’s largest computer-chip maker. About 80% of all computers use its chips. In the three months ended July 2, 2011, the tech stock’s revenue of $13.0 billion. That’s up 21.1% from $10.8 billion a year earlier. The company’s recent acquisitions of McAfee Inc. and Germany’s Infeon Wireless Solutions (now Intel Mobile Communications) contributed $1.0 billion to Intel’s revenue, or 7.7% of the total. The tech stock’s earnings rose 10.0% in the quarter, to $3.2 billion from $2.9 billion. Earnings per share rose 15.7%, to $0.59 from $0.51, on fewer shares outstanding. These figures exclude costs related to integrate acquisitions and other one-time items....
Sherwin-Williams Co., $76.72, symbol SHW on New York, is North America’s largest paint producer. It operates over 3,900 paint and finishing stores around the world.
Sherwin is one of the stocks we analyze in Wall Street Stock Forecaster, our newsletter for U.S.A....
Sherwin is one of the stocks we analyze in Wall Street Stock Forecaster, our newsletter for U.S.A....
We’ve had a lot of success over the years with the high return investments we recommend in Stock Pickers Digest, our newsletter for aggressive investing. Of course, aggressive picks have the potential to give you bigger gains than your conservative selections. Still, aggressive stocks are best suited to investors who can accept substantial risk in the portion of their portfolios that they devote to these types of investments. You can be wrong on any of your stock picks, of course. But when you’re wrong on a speculative stock, your losses are likely to be bigger than they would be with a well-established company....