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
WEIGHT WATCHERS INTERNATIONAL $61.84 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares outstanding: 64.5 million; Market cap: $4.0 billion; No dividends paid) continues to surge higher as its strategy to leverage the power of high-profile celebrities pays off.

We first recommended the weight-loss firm at $26.61 in the December 2015 issue of Stock Pickers Digest....
We have lots of attractive long-term buys among the stocks we cover, and we’re positive about the long-term outlook for stocks. We feel just as strongly about the need to diversify.

That’s why we’ve chosen three top picks for 2018 from our Stock Pickers Digest recommendations....
RESTAURANT BRANDS INTERNATIONAL INC. $77 (www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No. 1) and Yum Brands (No. 2). It has 16,253 Burger King, 4,680 Tim Hortons (coffee and donuts) and 2,809 Popeyes Louisiana Kitchen (fried chicken) outlets in over 100 countries....
Saputo and Maple Leaf Foods continue to rely on acquisitions to expand. While those moves expand their product lines, continually integrating new operations adds risk.

SAPUTO INC. $43 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 386.7 million; Market cap: $16.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.5%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese....
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....