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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Even though the stock has rebounded 48%, we feel it can move even higher as the rollout of new vaccines speeds up the reopening of more businesses....
ADOBE INC....
These two tech firms are seeing stronger sales and earnings as their clients rebound from COVID-19. Their dominant positions in niche markets also cut your risk.
AGILENT TECHNOLOGIES INC. $125 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 305.0 million; Market cap: $38.1 billion; Price-to-sales ratio: 6.9; Dividend yield: 0.6%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients....
In the quarter ended December 31, 2020, overall revenue rose 14.8%, to $17.98 billion from $16.33 billion a year earlier....
On April 3, 2020, aerospace products-maker Raytheon Technologies Corp. spun off its Otis (elevators) and Carrier (heating and air conditioning) businesses to its shareholder. For each share they held, investors received 0.5 of a share in the new Otis and 1 share in Carrier.
Like many spinoffs, these new firms are off to a strong start—Carrier’s shares are up 212% since the spinoff, while Otis has gained 42%....
Uncertainty over the pandemic has delayed some of the benefits of the transformation....
RESTAURANT BRANDS INTERNATIONAL $59.45 is a buy. The company (New York symbol QSR; TSINetwork Rating: Average) (www.rbi.com; Shares outstanding: 478.0 million; Market cap: $28.1 billion; Dividend yield: 3.6%) is now testing a loyalty program in five U.S....