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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Growth Stocks Library Archives
Finning’s shares have more than doubled from their low of $15 in March 2020. That recovery reflects the rebounding global economy, and increased demand for commodities as well as Finning’s equipment. The company’s cost-cutting should help lift profits as commodity prices enter what could be a multi-year upswing.
FINNING INTERNATIONAL INC....
RESTAURANT BRANDS INTERNATIONAL INC. $81 is a buy for aggressive investors. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 465.5 million; Market cap: $37.7 billion; Price-to-sales ratio: 5.0; Dividend yield: 3.2%; TSINetwork Rating: Average; www.rbi.com) has 27,025 fast-food outlets in over 100 countries: 18,625 Burger King, 4,949 Tim Hortons (coffee and donuts), and 3,451 Popeyes Louisiana Kitchen (fried chicken).
Popeyes now plans to open its first location in the U.K....
STANTEC INC. $54 is a buy. The stock (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 111.6 million; Market cap: $6.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.2%; TSINetwork Rating: Extra Risk; www.stantec.com) offers you exposure to this leading seller of consulting, project-delivery, design and technology services....
Readers continue to benefit from our April 2020 decision to add these two real estate firms to our Successful Investor coverage. Since then, FirstService has jumped 48%, while Colliers has gained 32%. We feel both can go on to post more gains as businesses re-open and re-purpose their properties in response to the pandemic.
FIRSTSERVICE CORP....
Thomson Reuters’ shares have soared, rising about 70% since the company began divesting itself of its financial information business (Refinitiv).
Thomson is putting the proceeds of the Refinitiv sale into its remaining legal, tax and other specialized information businesses....
METRO INC., $56.54, is a buy. The company (Toronto symbol MRU; Shares o/s: 245.5 million; Market cap: $13.8 billion; TSINetwork Rating: Average; Yield: 1.8%; www.metro.ca) operates 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.
The retailer continues to benefit as consumers eat more meals at home during the COVID-19 pandemic instead of going to restaurants....
The retailer continues to benefit as consumers eat more meals at home during the COVID-19 pandemic instead of going to restaurants....
RESTAURANT BRANDS INTERNATIONAL INC. $67 (www.rbi.com) is a buy. The company operates 18,625 Burger King, 4,949 Tim Hortons (coffee and donuts), and 3,451 Popeyes Louisiana Kitchen (fried chicken). Tim Hortons recently announced a “Back to Basics Plan,” which involves new menu items, expanded use of its digital ordering app and better advertising....
TERADATA CORP. $51 is still a hold. The company (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 109.5 million; Market cap: $5.6 billion; Price-to-sales ratio: 3.0; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software to capture and store large amounts of data for individual businesses—its clients....
VISA INC. $233 is a buy. The stock (New York symbol V; Finance sector; Shares outstanding: 2.2 billion; Market cap: $512.6 billion; Price-to-sales ratio: 24.1; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.visa.com) gives you exposure to the world’s largest electronic-payments network....
Demand for new ATMs has suffered in the past few years, particularly as COVID-19 accelerated the shift to online shopping. In response, these two ATM makers are expanding into maintenance and other services as well as self-serve checkout terminals. Their cost-cutting plans should also help improve their profitability....