Aggressive stocks play an important role

Article Excerpt

Stock market volatility tends to have a larger impact on aggressive investments. However, we continue to believe that most investors can benefit from holding a portion of their well-diversified portfolios in these higher-risk stocks. Even so, as a way of cutting your risk, we prefer higher-risk companies that are leaders in their markets. The three we analyze here are good examples because their leading market positions make it easier for them to pass along higher costs to their customers. Note, however, that we see only two of these picks as suitable for new buying right now. METRO INC. $71 is a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 240.0 million; Market cap: $17.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 1.5%; TSINetwork Rating: Average; www.metro.ca) operates 960 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick. Metro continues to raise its selling prices to offset rising costs for food and labour. In the fiscal 2022 third quarter, ended July…

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