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.
Read More
Close
Growth Stocks Library Archives
VISA INC., $171, is still a buy. The world’s largest electronic payment processor (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.3 billion; Market cap: $393.3 billion; Price-to-sales ratio: 17.2; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.visa.com) has dropped out of Facebook’s plan to launch a new cryptocurrency called Libra.
Visa joins other big financial companies that have abandoned the partnership, including MasterCard, PayPal and eBay....
Visa joins other big financial companies that have abandoned the partnership, including MasterCard, PayPal and eBay....
These three Finance-sector picks expose you to more risk than big banks like J.P. Morgan and Wells Fargo (see pages 101 and 102). However, their solid growth—one is up 58% in a year—makes them worthwhile additions to your portfolio. While we still like all three, you should limit new purchases to Broadridge and State Street....
Your key to outsized gains is to find hidden gems before they come into the broker/media limelight. Some of the biggest profits that we’ve led subscribers to come from buying these stocks before they jump on wider investment demand.
WELL Health first attracted our attention after an investment by a Hong Kong billionaire earlier this year....
Symantec is a stock many of you already hold. It operates in the red-hot cyber security field, serving both businesses and consumers.
However, both those markets are highly competitive, and the company’s missteps over the last few years have held back its stock....
However, both those markets are highly competitive, and the company’s missteps over the last few years have held back its stock....
SHOPIFY INC. $426.94 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 115.5 million; Market cap: $49.2 billion; No dividends paid) offers merchants of all sizes Internet-based software to design, set up and manage their sales whether at bricks-and-mortar stores or online.
Shopify has launched a fulfilment network in the U.S., offering the hundreds of thousands of merchants now using its e-commerce platform faster and cheaper shipping to their own customers....
Research spending is a great hidden asset. Companies (like Adobe and ACI Worldwide on this page) mostly write off their research costs as they spend that money, and this depresses the current year’s earnings.
Standard accounting practice treats research spending as a regular expense like rent....
With all stocks—but especially tech stocks—you can put the odds in your favour by investing in companies that have hidden assets. Most other investors overlook them.
Today’s best-hidden asset is research spending (see box this page). Both Adobe and ACI Worldwide look expensive in relation to their earnings....
First, the good news: cannabis legalization will eventually lead to some great business successes. The bad news is that only a few of the multitude of cannabis stocks today will pay off for investors....
Our “sell-half” says that if you own a stock and you have doubled your money in it, you should sell half—so you get back your initial stake.
However, the sell-half rule applies mainly to stocks we rate as Start-up or Speculative.
Every case is different, but generally you should hold on to high-quality stocks even if they have doubled in price....
Chipotle is a stellar success story for so many of our subscribers. In October 2006, McDonald’s offered shares in the spinoff company to its investors. We advised McDonald’s shareholders to take that offer. At the time, Chipotle traded at $50. Just over 13 years later, the stock trades at $823—a whopping 1,546.5% gain for our subscribers....