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
HOME CAPITAL GROUP INC. $14 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 80.3 million; Market cap: $1.1 billion; Price-to-sales ratio: 4.0; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) is a mortgage lender serving borrowers who fail to meet the stricter standards of Canada’s big banks and other larger, traditional lenders.


The company stands to gain from higher interest rates and stricter rules on mortgage lending at Canada’s chartered banks....
WALMART INC. $86 (www.walmart.com) plans to open FedEx Office outlets inside 500 of its 4,761 U.S. stores following a successful trial. Those outlets, staffed by FedEx employees, provide a variety of shipping and packaging services. They should also help draw more customers to Walmart’s stores. Buy.


MONDELEZ INTERNATIONAL INC....

MCKESSON CORP. $139 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 206.3 million; Market cap: $28.7 billion; Price-to-sales ratio: 0.1; Dividend yield 0.9%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S....
STATE STREET CORP. $99 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 367.7 million; Market cap: $36.4 billion; Price-to-sales ratio: 3.3; Dividend yield: 1.7%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans....
Both Diebold and NCR have recently attracted activist investors. That involvement should accelerate their growth plans and draw investor attention to their strong prospects.


NCR CORP. $31 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 118.6 million; Market cap: $3.7 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines (ATMs), cash registers, self-serve checkouts and kiosks for theatres and arenas.


In late 2015, private-equity firm Blackstone Group (New York symbol BX) purchased $820 million worth of NCR’s preferred shares, which can be converted to common shares at $30.00 each....
INTERNATIONAL FLAVORS & FRAGRANCES INC. $135 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.0 million; Market cap: $10.7 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.iff.com) makes over 38,000 compounds that improve the taste of food and the smell of consumer products.


Thanks largely to acquisitions of smaller firms, IFF’s sales in the fourth quarter of 2017 rose 12.1%, to $854.6 million from $762.6 million a year earlier....
MICROSOFT CORP. $89 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.7 billion; Market cap: $685.3 billion; Price-to-sales ratio: 7.2; Dividend yield: 1.9%; TSINetwork Rating: Above Average) continues to benefit from its shift to selling its software as online subscriptions.


In the fiscal 2018 second quarter, ended December 31, 2017, revenue rose 12.0%, to $28.9 billion from $25.8 billion a year earlier....
In the past few years, these two computer-chip makers have diversified their product lines, mainly through acquisitions. That move has reduced their dependence on traditional chips, which continue to see stagnant demand.


As a result of two big purchases, Intel is now less reliant on consumers and businesses upgrading their personal computers.


Texas Instruments also continues to benefit from its decision to quit making chips for cellphones and its September 2011 purchase of analog chip maker National Semiconductor Corp.


Both stocks have more than doubled in the past five years....
SHERRITT INTERNATIONAL $1.29 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704-6698; www.sherritt.com; Shares o/s: 396.2 million; Market cap: $512.0 million; No dividends paid) is now focused on nickel/cobalt production, with operations in Cuba and Canada.


Sherritt shares are up 61% since August 2017 due to surging cobalt prices....
WESTJET AIRLINES $24.36 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares o/s: 123.3 million; Market cap: $2.8 billion; Dividend yield: 2.3%) now has a new CEO after the recent and unexpected resignation of Gregg Saretsky....