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.
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Domino’s Pizza Inc., symbol DPZ on New York, is the world’s largest chain of pizza stores that offer takeout and delivery. Domino’s operates 9,379 stores in the U.S. and over 70 other countries. Franchisees run most of these outlets. Domino’s is one of the growth stock picks we analyze in Stock Pickers Digest, our newsletter for aggressive investing. In the three months ended June 19, 2011, the growth stock pick’s earnings rose 11.5%, to $25.2 million, or $0.40 a share. A year earlier, it earned $22.6 million, or $0.37 a share. Sales rose 6.2%, to $384.9 million from $362.4 million. Same-restaurant sales rose 4.5% in the U.S. and 7.4% internationally. The consensus estimates were for earnings of $0.36 a share on sales of $372 million....
We continue to recommend a number of companies that are now involved in, or are planning to expand into, green power production, including solar and wind energy. However, while alternative energy investments appeal to a lot of investors on an emotional and conceptual level, many offer only limited investment potential. That’s because they may need a long time to move from the research or concept stage to profitability. In addition, many governments around the world are cutting subsidies for alternative energy investments as they look for ways to deal with their ballooning budget deficits....
Aastra Technologies, symbol AAH on Toronto, develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centred around business telephone systems, and includes products that integrate land lines and mobile phones. Aastra is one of the companies we analyze in Stock Pickers Digest, our newsletter that recommends stocks that may be appropriate for your aggressive portfolio. In the three months ended June 30, 2011, Aastra’s sales rose 2.2%, to $174.1 million from $170.3 million a year earlier. That’s mainly because the euro and Swiss franc rose against the Canadian dollar (the company gets three-quarters of its sales from Europe.)...
Genuine Parts Co., New York symbol GPC, distributes auto parts to over 4,800 independent stores in North America. The company also operates about 1,000 auto parts stores under the NAPA banner. Auto parts account for roughly 50% of its sales, and 52% of its earnings. The company also distributes industrial parts (33% of sales, 32% of earnings), office furniture (13%, 12%), and electrical equipment (4%, 3%). Genuine Parts’ exposure to a variety of businesses helps protect it from slowdowns in certain industries. Genuine is one of the companies we analyze in Wall Street Stock Forecaster newsletter, our newsletter for U.S.A stock market investing. In the three months ended June 30, 2011, Genuine Parts earned $151.8 million. That’s up 22.0% from $124.5 million a year earlier. Earnings per share rose 23.1%, to $0.96 from $0.78. That easily beat the consensus forecast of $0.89 a share. Sales rose 11.9%, to $3.2 billion from $2.8 billion. All of the company’s divisions reported higher sales, led by the electrical division, with a 28% rise....
Yum! Brands Inc., New York symbol YUM, operates 38,000 fast-food restaurants in over 110 countries. Its main banners include KFC (fried chicken), Pizza Hut and Taco Bell (Mexican food). Yum is also a leader in investing in China. It was the first fast-food company to enter the country, in 1987. We analyze Yum in Wall Street Stock Forecaster, our newsletter for investing in the U.S. markets. In the three months ended June 11, 2011, Yum’s revenue rose 9.4%, to $2.8 billion from $2.6 billion a year earlier. Earnings rose 10.5%, to $316 million, or $0.65 a share, from $286 million, or $0.59 a share. Excluding unusual items, mostly gains and losses on sales of restaurants to franchisees, earnings per share would have risen 13.8%, to $0.66 from $0.58. That beat the consensus estimate of $0.61 a share....
Apple Inc., symbol AAPL on Nasdaq, makes computers and a wide range of electronic devices, including the iPhone and iPad tablet computer.
Apple is one of the tech stocks we analyze in Wall Street Stock Forecaster, our newsletter for investing in U.S....
Apple is one of the tech stocks we analyze in Wall Street Stock Forecaster, our newsletter for investing in U.S....
Demand for medical devices and supplies will undoubtedly continue to grow as the population ages. Companies in this fast-changing field make a wide range of products, from wheelchairs to syringes and surgical instruments. Some medical-equipment firms are large and well-established, like Baxter International (symbol BAX on New York), one of the stocks we cover in our Wall Street Stock Forecaster newsletter. Baxter gets most of its sales from its Medical Products division, which makes intravenous pumps, syringes and kidney-dialysis equipment. Overall, the company has over $12.8 billion U.S. in annual sales. It also has a long history of paying dividends....
AlarmForce Industries, symbol AF on Toronto, reported record quarterly revenue of $10.1 million in the three months ended April 30, 2011. That’s up 10.3% from $9.2 million a year earlier.
AlarmForce is one of the stocks we analyze in Stock Pickers Digest, our newsletter that helps you make hot stock picks for the part of your portfolio you devote to aggressive investing.
Earnings fell 9.2%, to $949,000, or $0.08 a share, from $1.0 million, or $0.09 a share....
AlarmForce is one of the stocks we analyze in Stock Pickers Digest, our newsletter that helps you make hot stock picks for the part of your portfolio you devote to aggressive investing.
Earnings fell 9.2%, to $949,000, or $0.08 a share, from $1.0 million, or $0.09 a share....
Nordstrom Inc., symbol JWN on New York, mainly sells upscale clothing, accessories and footwear. The company owns and operates 212 outlets in the United States. It expects to open another nine stores this year. In March 2011, Nordstrom paid $180 million for HauteLook. The Los Angeles-based online retailer has more than 4 million members and annual sales of over $100 million. The acquisition will dilute Nordstrom’s earnings by about $0.20 per share in 2011. In its 2011 first quarter, which ended April 30, the U.S. stock’s earnings rose 25.0%, to $145 million, or $0.65 a share, from $116 million, or $0.52, a year earlier. The figures for the recent quarter include a $0.04 charge related to the acquisition of HauteLook....
McCormick & Co., Inc., New York symbol MKC, makes spices, herbs, seasonings, specialty foods and flavours, and markets them to the food industry. McCormick is one of the companies we analyze in Wall Street Stock Forecaster, our newsletter for investing in U.S. stocks. In its second quarter, which ended May 31, 2011, McCormick’s earnings rose 11.2%, to $73.6 million from $66.2 million a year earlier. Earnings per share rose 12.2%, to $0.55 from $0.49, on fewer shares outstanding....