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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Note, however, we continue to recommend that aggressive stocks, with inherently greater risk, make up no more than a third of your overall portfolio....
In the short term, however, coronavirus shtutdowns have hurt the company’s ability to install new equipment. Still, sales for this industry leader should rebound over the next few months as its customers resume normal operations.
AGILENT TECHNOLOGIES INC....
Investors are now turning their attention to stocks that should thrive as the world attempts to prevent a resurgence of COVID-19. Those investments include medical device suppliers Baxter and Becton Dickinson. Both firms are developing COVID-related products....
United Technologies gifted its investors with two spinoffs following its April merger with Raytheon Co. For each UTX share they held, investors received 0.5 of a share in Otis (elevators) and 1 share in Carrier (heating and air conditioning equipment).
We’re confident these two spinoffs will move higher for you in the next few years....
MOTOROLA SOLUTIONS INC. $139 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.7 million; Market cap: $24.4 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire vehicles, as well as high-definition surveillance systems.
The company recently acquired IndigoVision....
Looking beyond COVID-19, we feel the stock can move higher....
You could say this is related to the fight against COVID-19. But, it was going to happen anyway, due to regulatory and research developments that were already underway....