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.

Read More Close
Growth Stocks Library Archives
SNC-LAVALIN GROUP INC. $57 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 175.4 million; Market cap: $10.0 billion; Price-to-sales ratio: 1.2; Divd. yield: 2.1%; TSINetwork Rating: Average; www.snclavalin.com) is a leading Canadian engineering and construction firm specializing in large infrastructure projects, including roads, bridges and water-treatment plants.

The company recently paid $3.6 billion for U.K.-based engineering firm WS Atkins plc....
Here are our #1 stocks for 2018. There’s one for each of our portfolios— Conservative, Aggressive and Income.

Each of the three offers a particularly attractive combination of long-term growth at a reasonable price. We expect their plans to keep expanding will further spur their gains in 2018 and beyond....
LOBLAW COMPANIES $67.90 (Toronto symbol L; Shares outstanding: 388.1 million; Market cap: $26.4 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%; www.loblaw.ca) operates over 1,096 supermarkets and 1,323 Shoppers Drug Mart pharmacies across Canada.

In the three months ended October 7, 2017, Loblaw’s overall sales rose just 0.3%, to $14.19 billion from $14.14 billion a year earlier....
TERADATA CORP. $39 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 121.0 million; Market cap: $4.7 billion; Price-to-sales ratio: 2.2; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software to capture and store large amounts of data for individual businesses—its clients....
SHERWIN-WILLIAMS CO. $414 (www.sherwin-williams.com) completed its all-cash acquisition of rival paint maker Valspar Corp. on June 1, 2017. If you include Valspar’s debt, the total price was $11.3 billion. The company expects the purchase will increase its free cash flow (regular cash flow less capital expenditures) from $1.4 billion in 2016 to around $2.0 billion in 2020....
DIAGEO PLC ADRs $142 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 630.0 million; Market cap: $89.5 billion; Price-to-sales ratio: 5.4; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.diageo.com) is the world’s largest premium alcoholic beverage company....
Each of these three small industrial firms has used acquisitions to expand into new markets and regions. While it pays to take a skeptical view of companies that buy other firms to grow, we feel these particular purchases will pay off. Even so, not all of three stocks are now buys....
EBAY INC. $38 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares o/s: 1.1 billion; Market cap: $41.8 billion; Price to-sales ratio: 4.2; No divd. paid; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites where sellers pay fees to auction items or offer them at fixed prices....
Traditional retailers, such as the three we analyze below, continue to grapple with strong competition from online sellers. That has forced them to close stores and sell real estate.

These companies still own some the best-known brands in the industry, which should help them survive....
Conagra’s move to spin off its frozen potato business Lamb Weston in 2016 has spurred the shares of both companies: Conagra is up 9% since the spinoff, while Lamb Weston has soared 67%.

A large part of those gains is the smaller size and focus of each company....