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:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. 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
RESTAURANT BRANDS INTERNATIONAL INC. $77 is a buy. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 463.8 million; Market cap: $35.7 billion; Price-to-sales ratio: 4.2; Dividend yield: 3.7%; TSINetwork Rating: Average; www.rbi.com) has 27,086 fast-food outlets in over 100 countries: 18,838 Burger King, 4,932 Tim Hortons (coffee and donuts), and 3,316 Popeyes Louisiana Kitchen (fried chicken).


In 2018, Tim Hortons formed a joint venture with Cartesian Capital Group to open 1,500 restaurants in China over the next decade.


Expanding in foreign markets adds risk, which is why a new deal with Tencent Holdings Ltd., China’s biggest social network and online games company, goes a long way to improving the prospects for this venture.


Tencent will invest an unspecified amount in a partnership jointly owned by Restaurant Brands and Cartesian Capital....
Governments have designated real estate service companies like FirstService and Colliers as essential, so they continue to operate normally. We feel their solid brands put them in a strong position to rebound as the pandemic eases.


FIRSTSERVICE CORP....
SHAWCOR LTD. $3.89 is still a buy, but only for highly aggressive investors. The company (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.2 million; Market cap: $273.1 million; Price-to-sales ratio: 0.2; Dividend suspended in March 2020; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and gas pipelines from rusting....
Here are two more high-quality, dividend-paying stocks that should gain from rising oil prices. Higher prices would spur demand for Finning’s heavy equipment by oil producers, while Nutrien should see stronger fertilizer sales as farmers plant more corn for ethanol, a gasoline additive.


FINNING INTERNATIONAL INC....
EMERA INC. $54 is a buy. The company (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 236.2 million; Market cap: $12.8 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.5%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier....
LOBLAW COMPANIES, $67.96, is a buy. Through their shares in the retailer (Toronto symbol L; Shares outstanding: 362.3 million; Market cap: $24.6 billion; TSINetwork Rating: Above Average; Dividend yield: 1.9%; www.loblaw.ca) investors tap 1,088 food stores and 1,343 Shoppers Drug Mart outlets in Canada.


The COVID-19-related lockdowns have prompted consumers to stock up on food and other essential items. This includes using the company’s expanding e-commerce services such as home ordering and in-store pickup or delivery. As a result, Loblaw’s total revenue in the quarter ended March 21, 2020, jumped 10.7%, to $11.80 billion from $10.66 billion a year earlier.


Overall earnings jumped 21.4% to $352 million from $290 million a year earlier....

We picked United Technologies as our top Conservative pick for 2020 before the COVID-19 outbreak. Despite the resulting stock market damage, our reasons behind that choice are still valid.


The merger with defense contractor Raytheon has helped cut its exposure to commercial airlines, which continue to struggle during the current crisis....
ABB LTD. ADRs $20 is a buy. The stock (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs o/s: 2.1 billion; Market cap: $42.0 billion; P.S. ratio: 1.5; Divd. yield: 4.3%; TSINetwork Rating: Above Average; www.abb.com) gives investors a stake in this leading manufacturer of transformers, transmission systems and circuit breakers for electrical utilities....
BROADRIDGE FINANCIAL SOLUTIONS INC. $117 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 114.7 million; Market cap: $13.4 billion; Price-to-sales ratio: 3.1; Dividend yield: 1.8%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.


In its fiscal 2020 third quarter, ended March 31, 2020, revenue rose 2.0%, to $1.25 billion from $1.22 billion a year earlier....
The COVID-19 pandemic has spurred a surge in demand for grocery products. For investors, that has lifted shares of both PepsiCo and Campbell Soup. However, the ongoing closures of movie theatres and sports arenas will continue to hurt sales of soft drinks. While that’s likely to slow further share-price gains for PepsiCo, the closures are just as likely to boost your Campbell shares.


PEPSICO INC....