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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WYNDHAM WORLDWIDE $68.94 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973-753-6000; www.wyndhamworldwide.com; Shares outstanding: 116.1 million; Market cap: $7.6 billion; Dividend yield: 2.4%) is one of the world’s largest hospitality companies, with 7,800 franchised hotels worldwide. It also manages vacation resorts, rental properties, luxury clubs and timeshares. The company has 112,000 vacation-rental properties in 100 countries. In the three months ended December 31, 2015, Wyndham’s revenue rose 6.5%, to $1.31 billion from $1.23 billion a year earlier. Earnings per share rose 8.9% before onetime items, to $0.98 from $0.90. The company is raising its quarterly dividend by 19.0%, to $0.50 from $0.42. The stock now yields 2.5%....
BROADRIDGE FINANCIAL SOLUTIONS $55.43 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 118.6 million; Market cap: $6.6 billion; Dividend yield: 2.2%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 90% of all proxy votes in the U.S. and Canada. Without one-time items, Broadridge earned $46.5 million in its fiscal 2016 first quarter, which ended December 31, 2015. That’s up 16.5% from $39.9 million a year earlier. Earnings per share rose 18.8%, to $0.38 from $0.32, on fewer shares outstanding. Recurring revenue cuts risk...
GOODYEAR TIRE & RUBBER CO. $30.78 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 268.9 million; Market cap: $8.2 billion; Dividend yield: 0.9%) is one of the world’s largest tire makers, with 52 plants in 22 countries. In the three months ended December 31, 2015, Goodyear’s revenue fell 6.7%, to $4.06 billion from $4.36 billion a year earlier. The rising U.S. dollar lowered the value of the company’s foreign sales (particularly in Europe and Brazil) by $339 million. Excluding one-time items, earnings rose 12.0%, to $257.0 million, or $0.93 a share. A year earlier, the company earned $166.0 million, or $0.59 a share....
Blackberry counts on software sales, growing demand for Priv smartphone
PFIZER INC. $32 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 6.5 billion; Market cap: $208.0 billion; Price-to-sales ratio: 4.0; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.pfizer.com) is the world’s largest pharmaceutical company.
Pfizer gets about 45% of its revenue from 10 drugs, each of which generates over $1 billion in annual sales. They include Lipitor (for high cholesterol), Enbrel (rheumatoid arthritis), Lyrica (epilepsy), Celebrex (arthritis), Viagra (erectile dysfunction), Norvasc (hypertension), Prevnar (a pneumonia vaccine), Sutent (stomach cancer), Premarin (hormone replacement) and Zyvox (bacterial infections).
The company is also the world’s fifth-largest maker of overthe- counter drugs. Brands include Advil (pain relief), Centrum (vitamins) and Robitussin (cough syrup).
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Pfizer gets about 45% of its revenue from 10 drugs, each of which generates over $1 billion in annual sales. They include Lipitor (for high cholesterol), Enbrel (rheumatoid arthritis), Lyrica (epilepsy), Celebrex (arthritis), Viagra (erectile dysfunction), Norvasc (hypertension), Prevnar (a pneumonia vaccine), Sutent (stomach cancer), Premarin (hormone replacement) and Zyvox (bacterial infections).
The company is also the world’s fifth-largest maker of overthe- counter drugs. Brands include Advil (pain relief), Centrum (vitamins) and Robitussin (cough syrup).
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Revenue for DIRTT Environmental Solutions climbs on strong U.S. dollar and new clients in financial services
Amex revenue fell 4% last year but a plan to sell its Costco loans and reduce expenses by $1 billion should raise earnings
NISSAN MOTOR CO. ADR $19.90 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissanmotors.com; Shares outstanding: 2.3 billion; Market cap: $45.8 billion; No dividends paid) reported that its earnings rose 3.2% in the three months ended December 31, 2011, to 82.7 billion yen ($1.07 billion U.S.) from 80.1 billion yen ($1.04 billion U.S.) a year earlier.
That’s a particularly strong performance in light of the fact that flooding in Thailand cut Nissan’s production by 33,000 vehicles in the quarter. The strong yen also hurt the company’s profits from overseas sales. Even so, the latest earnings beat the consensus estimate of 71.7 billion yen.
Nissan’s sales are rising in all of its markets outside Japan, including Europe and the U.S., as well as China and emerging markets like India, Russia and Brazil. Overall, the car-maker sold 1.2 million vehicles during the quarter, up 19.5% from a year earlier.
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That’s a particularly strong performance in light of the fact that flooding in Thailand cut Nissan’s production by 33,000 vehicles in the quarter. The strong yen also hurt the company’s profits from overseas sales. Even so, the latest earnings beat the consensus estimate of 71.7 billion yen.
Nissan’s sales are rising in all of its markets outside Japan, including Europe and the U.S., as well as China and emerging markets like India, Russia and Brazil. Overall, the car-maker sold 1.2 million vehicles during the quarter, up 19.5% from a year earlier.
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Growth investing fills in the gaps in an investor’s portfolio and can lead to an increase in portfolio returns
PFIZER INC. $31 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 6.2 billion; Market cap: $192.2 billion; Price-to-sales ratio: 4.0; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.pfizer.com) is one of the world’s leading prescription drug makers. Top-selling brands include Lyrica (epilepsy), Celebrex (arthritis pain), Prevnar (pneumonia) and Enbrel (rheumatoid arthritis). Many of Pfizer’s drugs will lose their patent protection in the next few years. To fuel its future growth, the company paid $17 billion for Hospira in 2015. Hospira makes biosimilars, which are close copies of biologic drugs (or those made from living organisms, like bacteria and yeast). Biologics differ from regular drugs, which are typically made from chemical compounds....