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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Broadridge Financial Solutions boosts earnings through acquisition and niche investment services.
WESTJET AIRLINES $18.52 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 123.3 million; Market cap: $2.2 billion; Dividend yield: 3.0%) serves 100 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 108 modern Boeing 737s are 30% more fuel efficient than older jets. In June 2013, the company launched WestJet Encore, its Canadian regional airline. This business now operates 23 Bombardier Q400 NextGen turboprop planes, which seat 78 passengers. The Canadian airline market remains highly competitive, especially with Air Canada expanding its Rouge budget airline to serve more leisure destinations in Europe, the Caribbean, Mexico and the U.S....
SYMANTEC CORP. $18.82 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares outstanding: 675.5 million; Market cap: $12.9 billion; Dividend yield: 3.2%) continues to strengthen its fast-growing cybersecurity business. It’s also selling its data backup and recovery operation. In its fiscal 2016 second quarter, which ended October 2, 2015, Symantec’s earnings fell 9.3%, to $301 million, or $0.44 a share, from $332 million, or $0.48. Sales declined 7.4%, to $1.5 billion from $1.6 billion. Businesses continue to spend heavily to protect their data from online intruders. However, sales to consumers fell as the company shifts users to a cloudbased service. That will make it easier for them to receive security updates and encourage them to renew their subscriptions. Symantec expects to complete these conversions in mid-2016....
AGT FOOD & INGREDIENTS $36.50 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.agtfoods.com; Shares outstanding: 23.8 million; Market cap: $862.3 million; Dividend yield: 1.6%) buys and processes a range of pulses—which include peas, beans, lentils and chickpeas—as well as other specialty crops.
Saskatchewan-based AGT owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and one in South Africa.
In the three months ended September 30, 2015, AGT earned $0.51 a share, up 10.9% from $0.46 a year earlier....
Saskatchewan-based AGT owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and one in South Africa.
In the three months ended September 30, 2015, AGT earned $0.51 a share, up 10.9% from $0.46 a year earlier....
BIRCHCLIFF ENERGY $3.35 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 152.3 million; Market cap: $461.5 million; No dividends paid) develops, produces and explores for oil and gas in Western Canada. In the quarter ended September 30, 2015, Birchcliff’s cash flow per share dropped 42.0%, to $0.29 from $0.50 a year earlier. Sharply lower oil and gas prices offset a 12.3% production rise. Now more than ever, it’s crucial for oil and gas producers to have sound balance sheets that can weather a long downturn....
NISSAN MOTOR (ADR) $18.07 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding 2.3 billion; Market cap: $42.8 billion; Yield: 3.3%) is Japan’s second-largest automaker, after Toyota and ahead of Honda. In December 2015, the company sold a record 139,300 vehicles in the U.S., up 18.7% from 117,318 in December 2014. Sales of crossovers, trucks and SUVs (46% of the total) jumped 43.9%, thanks to new models such as its updated Rogue (up 78.0%) and Murano (up 62.2%)....
COLLIERS INTERNATIONAL GROUP $58.39 (Toronto symbol CIG ; TSINetwork Rating: Extra Risk) (1-202-695-4200; www.colliers.com; Shares o/s: 36.7 million; Market cap: $2.2 billion; Divd. yield: 0.2%) is one of the world’s top three commercial real estate firms, offering a range of services in the U.S., Canada, Europe, Australia, New Zealand, Asia and Latin America. The company has 16,300 employees operating from 502 offices in 67 countries. In the three months ended September 30, 2015, Colliers’ revenue rose 12.8%, to $420.3 million from $372.6 million a year earlier (all figures except share price and market cap in U.S. dollars). If you exclude one-time items, the company’s earnings jumped 57.7%, to $20.0 million from $12.7 million. Per-share profits rose 48.6%, to $0.52 from $0.35, on more shares outstanding....
FIRSTSERVICE CORP. $50.53 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.7 million; Market cap: $1.8 billion; Dividend yield: 1.1%) spun off its Colliers International subsidiary (see below) on June 2, 2015, when it handed out Colliers shares to its investors. Shareholders are only liable for capital gains taxes on the transaction when they sell their FirstService or Colliers shares. Now that the spinoff is complete, FirstService is carrying on with its residential property management and property-improvement businesses. In the three months ended September 30, 2015, the company’s revenue gained 12.0%, to $349.5 million from $312.0 million a year earlier (all figures except share price and market cap in U.S. dollars). If you set aside one-time items, earnings per share jumped 28.2%, to $0.50 from $0.39. The second and third quarters are FirstService’s busiest....
CHIPOTLE MEXICAN GRILL $465.50 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.2 million; Market cap: $14.6 billion; No dividends paid) continues to suffer as it copes with food-safety concerns at its restaurants. In October and November 2015, E. coli infections sickened 52 customers at Chipotle locations in nine states and forced the company to temporarily close some outlets. Recent norovirus outbreaks at restaurants in California and Massachusetts have added to the bad publicity. Norovirus, which causes stomach problems, is highly infectious, though not fatal. Chipotle now believes these problems cut its same-restaurant sales by 14.6% in the fourth quarter of 2015. It also expects to spend $14.0 million to $16.0 million to test and replace food and improve its food-safety procedures....
ADOBE SYSTEMS INC. $87.94 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 498.8 million; Market cap: $44.4 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format. Graphic designers also use its programs to create print publications and web pages. In its fiscal 2015 fourth quarter, which ended November 27, 2015, Adobe earned $0.62 a share, up 59.0% from $0.39 a year earlier. Revenue jumped 21.7%, to a record $1.31 billion from $1.07 billion. In the latest quarter, the company added 833,000 Creative Cloud subscribers (net of cancellations). This service now has 6.2 million users, up 78.6% from a year ago. Adobe is also seeing strong demand for its newer cloud-based offerings, including Document Cloud, which lets users create, manage and sign online documents for a monthly fee....