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
CHIPOTLE MEXICAN GRILL, $31.00, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 1.3 billion; Market cap: $41.0 billion; No dividends paid.) continues to be hurt by high beef prices, especially for its smoked brisket. However, prices may now be entering a downward trend.
TEXAS ROADHOUSE, $167.20, is a buy. The company (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (texasroadhouse.com; Shares outstanding: 66.2 million; Market cap: $11.1 billion; Dividend yield: 1.6%) is a full-service, casual-dining restaurant chain with 806 locations spread across 49 U.S. states and 10 foreign countries.
Each of those restaurants operates under one of three banners—Texas Roadhouse (736 locations), sports restaurant Bubba’s 33 (54), and Jaggers (16).
Each of those restaurants operates under one of three banners—Texas Roadhouse (736 locations), sports restaurant Bubba’s 33 (54), and Jaggers (16).
ELI LILLY & CO., $1,049.60, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 896.5 million; Market cap: $939.4 billion; Dividend yield: 0.6%) believes the supercomputer and its AI capabilities will help identify new molecules and speed up the years-long development process. The company will use the system for other functions such as improving clinical trials, manufacturing and sales.
ADOBE INC., $318.11, is a buy. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares outstanding: 418.5 million; Market cap: $133.2 billion; No dividends paid) makes programs that let computer users create, edit and share documents in the popular PDF format. It also makes a variety of electronic-publishing programs.
TC ENERGY CORP. $77 is a buy. The company (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 1.04 billion; Market cap: $80.1 billion; Price-to-sales ratio: 5.3; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.tcenergy.com) operates a 93,700-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. It also owns gas pipelines in Mexico; at the same time, it owns or invests in 12 power plants in Canada and the U.S.
LOBLAW COMPANIES LTD. $59 is a buy. The supermarket operator (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $70.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.loblaw.ca) recently opened three smaller stores in Ontario based on its popular “no name” private label brand. These outlets are much smaller than its regular stores and carry a limited selection of frozen and canned goods, and packaged bakery items. However, the stores
FirstService and Colliers tend to fuel their growth with acquisitions. However, that strategy is not as risky as it seems given both companies target smaller firms that expand their market share and geographic reach. What’s more, they seek prospective purchases with a high recurring revenue; that only enhances their long-term appeal.
MAPLE LEAF FOODS INC. $24 is a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.9 million; Market cap: $3.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.2%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels. It also makes plant-based protein products under the Lightlife and Field Roast brands.
Here are three industrial stocks hitting new highs. Those gains are largely due to the Canadian government’s plan to increase spending on infrastructure projects, which will spur demand for Finning and Toromont’s construction equipment. The government is also eliminating the luxury tax on private jets, which should lead to more orders for Bombardier.
Even after their impressive rise, we still see two of the three as buys. However, we recommend investors cap their exposure to the cyclical Manufacturing sector at a third or less of their portfolio.
Even after their impressive rise, we still see two of the three as buys. However, we recommend investors cap their exposure to the cyclical Manufacturing sector at a third or less of their portfolio.
LOBLAW COMPANIES, $57.73, (Toronto symbol L; Shares ooutstanding: 1.2 billion; Market cap: $65.3 billion; TSINetwork Rating: Above Average; Dividend yield: 1.0%; www.loblaw.ca) is a buy. The company, through its Loblaw Advance marketing unit, operates roughly 2,000 screens at more than 700 locations. Those screens display ads and other promotions.