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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It has been one year since Apple Inc. (symbol AAPL on Nasdaq) unveiled its iPad tablet computer. This device is a complete personal computer that uses a touch screen instead of a traditional keyboard. That makes it more portable and easier to use than a traditional laptop. Apple sold roughly 300,000 iPads on the first day the device was sold in U.S. stores. The iPad continues to be a very strong seller for Apple: In its latest quarter, the company sold 7.3 million iPads. In response to the ongoing popularity of the iPad, other technology stocks, such as Research in Motion and Samsung, are preparing to launch new tablet computers of their own in the coming months....
Texas Instruments Inc. (New York symbol TXN) makes chips for a wide variety of electronic devices, including cellphones, DVD players, digital cameras and handheld calculators. The tech stock’s chips are also used in other products, ranging from weapons-guidance systems to kidney-dialysis machines. In the three months ended December 31, 2010, Texas Instruments’ earnings jumped to $942 million, or $0.78 a share. A year earlier, the company earned $655 million, or $0.52 a share. The sale of a product line, and restoring a research and development federal tax credit contributed $0.14 a share to the latest quarterly earnings. The tech stock’s sales rose 17.3% to $3.5 billion from $3.0 billion. The company saw stronger demand for chips from makers of smartphones and communications gear. That offset lower sales to computer and television makers....
On January 28, Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks, will unveil a company with the right mix of strong fundamentals and emerging-market exposure to earn big profits in 2011 and beyond. In fact, we think this U.S. stock’s prospects are so bright we’ve named it Wall Street Stock Forecaster’s #1 stock pick for the coming year. This company is solidly focused on fuelling its growth, mainly by focusing on fast-growing markets like Brazil, China and India, where rising prosperity is making its products more affordable to more consumers....
Aggressive investments have the potential to generate large returns compared to more conservative selections. But they can also give you bigger losses. As well, aggressive stocks tend to be more highly leveraged and volatile than conservative stocks. But there are ways to earn large returns with less risk in the part of your portfolio you devote to aggressive investing. Here are 4 principles we use to select stocks to recommend in Stock Pickers Digest, our newsletter for aggressive investing:
- Limit aggressive holdings to 30% of your overall portfolio. Because aggressive stocks expose you to a greater risk of loss, we recommend limiting your aggressive holdings to no more than, say, 30% of your overall portfolio....
On January 21, Stock Pickers Digest, our newsletter for aggressive investing, will unveil a stock that’s well positioned for big gains in 2011. In fact, we think this potentially high return investment’s prospects are so bright we’ve named it Stock Pickers Digest’s #1 stock pick for the coming year.
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Hidden pluses give this stock the potential for big gains in the months ahead
This Canadian firm is in a great position profit as the North American economy and consumer confidence continue to improve. Plus, it has recently signed agreements with other international firms that let it tap into rich new markets with less risk....
SuperValu Inc. (New York symbol SVU) operates about 2,500 company-owned and franchised supermarkets. Major banners include Save-A-Lot, Albertsons and Jewel-Osco. Supervalu gets 76% of its revenue from its retail stores. It gets the remaining 24% by supplying food to 1,890 independent stores. The company continues to focus on its core business of food retailing, and has stopped selling other items, such as automotive goods and perfumes, in its stores. In its fiscal 2011 third quarter, which ended December 4, 2010, the Wall Street stock’s sales fell 5.9% to $8.7 billion from $9.2 billion a year earlier. Same-store sales declined 4.9%. The company closed underperforming stores, and was forced to cut its prices due to stronger competition from discount retailers, including Wal-Mart, which is selling more groceries in its stores....
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on successful investing. Each Investor Toolkit update gives you a fundamental piece of investment strategy, and shows you how you can put it into practice right away. Tip of the week: “Cut risk in your aggressive portfolio with our ‘sell-half’ rule.” Our “sell-half” rule says that if a stock you own has doubled, you should sell half so you get back your initial stake. Once you’ve recovered your initial investment, you’ll be able to think more clearly about the stock....
Ruby Tuesday (New York symbol RT) owns 676 restaurants in the U.S. Franchisees run another 140 U.S. outlets, and international franchisees operate 58 restaurants overseas. Ruby Tuesday is one of the stocks we analyze in Stock Pickers Digest, our newsletter for aggressive investing. Ruby Tuesday offers casual American dining. The company’s fall menu contains a number of new offerings, including Fit & Trim entrees, complimentary garlic cheese biscuits, additional side items and an improved Sunday brunch....
Members of our Inner Circle service often ask for our advice on stocks they are thinking of buying that we don’t cover in our newsletters. These companies range from the most speculative penny mines to large multinational growth stock picks. For example, an Inner Circle member recently asked for our advice on hotel and casino operator Las Vegas Sands Corp. The growth stock pick’s shares have risen sharply over the past year, and it is opening new resorts in Asia and the U.S. To give you a sense of how my Inner Circle service works, I’d like to share this question, and our answer, with you. I hope you enjoy and profit from it....
When you’re looking for high return investments, it pays to be skeptical of companies that rely too heavily on acquisitions. That’s because the buyer of something rarely knows as much about it as the seller. So it follows that if a company makes enough acquisitions, it might eventually buy something that has hidden problems. At some point, those problems will come out into the open and hurt the buyer’s earnings.