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.
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The Swiss-American eye-care company generates almost half of its revenue in the U.S.—and U.S. tariffs on goods from Switzerland currently stand at a very high 39%.
AtkinsRealis is in a strong position to win new contracts in the U.S., particularly as the Trump administration wants to quadruple that country’s nuclear atomic energy capacity over the next 25 years.
Metro continues to improve its efficiency. For example, the company recently opened two new distribution centres in Terrebonne, Quebec, and Toronto. Both of these facilities use automated equipment to handle fresh and frozen foods. That will cut long-term labour costs.
The company is testing several ways to speed up its home delivery service. Those include using drones to deliver packages, and new technologies that let it better track goods in its warehouses. Walmart also plans to open smaller distributions centres that are about the same size as its regular outlets.
In 2024, Tennant invested $32.1 million in Brain Corp., a California-based developer of autonomous and robotic technology. That has helped the company launch its own line of autonomous cleaning equipment. So far, it has delivered 9,800 units to over 950 customers.