Latest Stock Advice
Aggressive investors looking at high-risk stocks to invest in should only allocate a small part of their portfolios to those investments
Long-term favourite Suncor Energy Inc. has now earmarked a lot of its growing cash flow for shareholders
ResMed Inc. is a leader in the global sleep apnea device market with a near-monopoly in its niche as its total addressable market keeps expanding.
Extendicare Inc. is pivoting toward the high-demand, high-margin service sector as aging demographics continue to work strongly in its favour.
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Here are some of the main types of top Canadian growth stocks—and how to assess which ones offer you the best prospects
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APPLE INC. $100 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.5 billion; Market cap: $550.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.apple.com) makes a variety of electronic devices, including iPhone smartphones, Mac computers, iPad tablets, iPod music players and Apple watches. It also sells software, movies and music through its iTunes online store. The company recently invested $1 billion for an undisclosed minority stake in Didi Chuxing. Similar to Uber, this private firm operates the largest ride-sharing service in China. The purchase should help Apple gain more insight into China’s fast-growing Internet economy. That’s important because it wants to expand Apple Pay— its mobile payment system— in that country. This investment could also help Apple improve its in-car entertainment and information products....
The fast-food industry faces several long-term challenges. These include the consumer shift to more nutritious foods and new laws to increase minimum wage rates. McDonald’s has a history of adapting to changing trends. The new plan is to increase sales through better food and customer service. It’s already paying off. The company is also cutting its costs by transferring more of its outlets to franchisees. McDonald’s will use most of the savings for share buybacks and dividends. That should continue to push the stock higher....
C.R. BARD INC. $220 (New York symbol BCR; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 73.3 million; Market cap: $16.1 billion; Price-to-sales ratio: 4.7; Dividend yield: 0.4%; TSINetwork Rating: Above Average; www.crbard.com) makes medical devices in four main areas: oncology products that detect and treat various types of cancer; vascular products such as stents and catheters; urology goods, including drainage and incontinence devices; and surgical tools. The company continues to benefit from its new growth strategy, which involves selling less-profitable businesses and buying other medical-device makers. Bard earned $177.0 million in the quarter ended March 31, 2016, up 9.5% from $161.6 million a year earlier. Earnings per share rose 11.4%, to $2.34 from $2.10, on fewer shares outstanding. Sales gained 6.6%, to $873.5 million from $819.7 million. Without the high U.S. dollar’s negative impact, sales rose 8%. The company expects its earnings for all of 2016 will rise about 11.5%, to between $10.05 and $10.18 a share. The stock trades at 21.7 times the midpoint of that range. That’s still a reasonable multiple, as Bard products are typically only used once so customers must continually buy new ones....
MONSANTO CO. $112 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 436.8 million; Market cap: $48.9 billion; Price-tosales ratio: 3.5; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.monsanto.com) develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also sells weed- and pest-control products. The company is now the target of a $122.00-a-share, all-cash takeover bid by Bayer AG— the German farm chemical and drugmaker. Bayer feels the merger would help both firms compete with rivals Dow Chemical Co. and DuPont Co., which plan to merge later this year. As well, China National Chemical Corp. agreed in February 2016 to acquire Switzerland- based Syngenta AG....