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.
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Growth Stocks Library Archives
Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
HUNTINGTON INGALLS INDUSTRIES, $334.22, is a buy. The company (New York symbol HII; TSINetwork Rating: Average) (www.hii.com; Shares outstanding: 39.4 million; Market cap: $13.2 billion; Dividend yield: 1.7%), has just successfully launched future USS George M. Neal (DDG 131), marking a major construction milestone for the fourth Flight III Arleigh Burke-class destroyer to be built at the shipyard.
HUNTINGTON INGALLS INDUSTRIES, $334.22, is a buy. The company (New York symbol HII; TSINetwork Rating: Average) (www.hii.com; Shares outstanding: 39.4 million; Market cap: $13.2 billion; Dividend yield: 1.7%), has just successfully launched future USS George M. Neal (DDG 131), marking a major construction milestone for the fourth Flight III Arleigh Burke-class destroyer to be built at the shipyard.
You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
WIX.COM LTD., $55.32, (Nasdaq symbol WIX; TSINetwork Rating: Extra Risk) (www.wix.com; Shares outstanding: 58.3 million; Market cap: $3.2 billion; No dividends paid) offers businesses and individuals an online platform using drag-and-drop tools to create free websites and mobile sites.
WIX.COM LTD., $55.32, (Nasdaq symbol WIX; TSINetwork Rating: Extra Risk) (www.wix.com; Shares outstanding: 58.3 million; Market cap: $3.2 billion; No dividends paid) offers businesses and individuals an online platform using drag-and-drop tools to create free websites and mobile sites.
GOODYEAR TIRE & RUBBER, $5.81, continues to operate in a challenging environment, with weak consumer demand for both original equipment and replacement tires.
Goodyear’s outlook is also weak, hurt by continuously low sales, inflationary pressures on its costs, and tariff-related expenses. Meanwhile, competition from rivals Michelin, Bridgestone, Pirelli, and low-cost Asian imports remains intense.
Goodyear’s outlook is also weak, hurt by continuously low sales, inflationary pressures on its costs, and tariff-related expenses. Meanwhile, competition from rivals Michelin, Bridgestone, Pirelli, and low-cost Asian imports remains intense.
While new EV sales have slowed significantly, there are still millions of these vehicles on the road and climbing. The longer “dwell times” for EV charging compared to gasoline refuelling also affords Couche-Tard the opportunity to market its updated foodservice program to these drivers.
We’re adding Solventum to the Power Growth Investor portfolio. The stock has some key pluses. It’s a spinoff from 3M—and we’ve had great success with a number of spun-off stocks over the years. Meanwhile, it’s also the target of an activist. Exactly how Solventum will respond to Trian’s pressure is uncertain, but the activist’s interest draws attention to its growth prospects. And finally, Solventum is solidly profitable, and trades at a very attractive P/E ratio. We see this stock as an attractive Power Buy.
SOLVENTUM CORP., $74.41, is a buy. The company (New York symbol SOLV; TSINetwork Rating: Average) (www.solventum.com; Shares outstanding: 173.2 million; Market cap: $12.8 billion; No dividends paid), makes wound care and infection prevention products, dental filling materials and healthcare software for hospitals.
SOLVENTUM CORP., $74.41, is a buy. The company (New York symbol SOLV; TSINetwork Rating: Average) (www.solventum.com; Shares outstanding: 173.2 million; Market cap: $12.8 billion; No dividends paid), makes wound care and infection prevention products, dental filling materials and healthcare software for hospitals.
Rising oil prices as a result of the Iran war could hurt demand for Bombardier jets and CAE’s simulators and training services. Despite that risk, we still like CAE for your new buying, particularly as the company may sell or spin off some of its operations.
BOMBARDIER INC. is a hold. The company (Toronto symbols BBD.A $300 and BBD.B $297; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 98.7 million; Market cap: $29.3 billion; Price-to-sales ratio: 2.2; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) now focuses solely on making private luxury and business jet planes following the January 2021 sale of its passenger railcar business to France’s Alstom SA.
BOMBARDIER INC. is a hold. The company (Toronto symbols BBD.A $300 and BBD.B $297; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 98.7 million; Market cap: $29.3 billion; Price-to-sales ratio: 2.2; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) now focuses solely on making private luxury and business jet planes following the January 2021 sale of its passenger railcar business to France’s Alstom SA.
Fears that new artificial intelligence (AI) tools will erode demand for its information products have pushed Thomson Reuters shares down 50% over the past year. However, these AI tools cannot access the company’s exclusive data. Moreover, Thomson has spent decades building databases that clients trust and depend on. It also continues to reward investors through regular share buybacks and dividend increases.
THOMSON REUTERS CORP. $126 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 436.5 million; Market cap: $55.0 billion; Price-to-sales ratio: 5.7; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information (mainly through electronic channels) to professionals in the legal, and tax and accounting fields. It also owns the Reuters news service.
THOMSON REUTERS CORP. $126 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 436.5 million; Market cap: $55.0 billion; Price-to-sales ratio: 5.7; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information (mainly through electronic channels) to professionals in the legal, and tax and accounting fields. It also owns the Reuters news service.
The U.S. Supreme Court struck down President Donald Trump’s use of emergency powers to arbitrarily impose new tariffs on individual countries. Still, product-specific global tariffs on steel (50%), aluminum (50%), automobiles (25%) and lumber (about 35%) continue to impact Canada.
Now, the United States, Mexico and Canada are undertaking the required review of their free trade agreement this year. Even if the pact remains largely intact, it is unlikely to eliminate all those tariffs.
Now, the United States, Mexico and Canada are undertaking the required review of their free trade agreement this year. Even if the pact remains largely intact, it is unlikely to eliminate all those tariffs.
We’ve long admired engineering firm Stantec for several reasons. Among them is its focus on designing projects instead of constructing them. This “asset-light” business model cuts the firm’s exposure to cost overruns. Stantec also has a successful history of buying smaller firms that enhance its expertise and let it enter new markets.
Given these many positives, we chose Stantec as your #1 Aggressive Buy for 2026. While the stock has gained 130% since we added it to the Successful Investor’s Aggressive Growth Portfolio in April 2020, we feel it has plenty of room to keep moving higher in the next few years. What’s more, the company continues to reward investors with dividend increases and share buybacks.
Given these many positives, we chose Stantec as your #1 Aggressive Buy for 2026. While the stock has gained 130% since we added it to the Successful Investor’s Aggressive Growth Portfolio in April 2020, we feel it has plenty of room to keep moving higher in the next few years. What’s more, the company continues to reward investors with dividend increases and share buybacks.
Metro and CPKC are leading competitors in their respective markets; look for that to cut your ongoing risk. We see both as attractive buys.
CANADIAN PACIFIC KANSAS CITY, $115.30, is a buy. The company (Toronto symbol CP; shares o/s: 897.3 million; Market cap: $103.5 billion; Rating: Above Average; Yield: 0.8%) took its current form in 2023 when it acquired U.S.-based Kansas City Southern (KCS) for $31 billion U.S.
CANADIAN PACIFIC KANSAS CITY, $115.30, is a buy. The company (Toronto symbol CP; shares o/s: 897.3 million; Market cap: $103.5 billion; Rating: Above Average; Yield: 0.8%) took its current form in 2023 when it acquired U.S.-based Kansas City Southern (KCS) for $31 billion U.S.