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
LOBLAW COMPANIES $71.35 (Toronto symbol L; Shares outstanding: 405.5 million; Market cap: $28.8 billion; TSINetwork Rating: Above Average; Dividend yield: 1.5%; www.loblaw.ca) currently operates over 1,100 supermarkets across Canada. In March 2014, the company purchased the Shoppers Drug Mart chain of 1,300 drugstores....
INTERNATIONAL FLAVORS & FRAGRANCES INC. $138 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.6 million; Market cap: $11.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.iff.com) makes over 38,000 compounds that improve the taste of food and the smell of consumer products.
IFF’s sales rose 10.8%, from $2.8 billion in 2011 to $3.1 billion in 2014....
IFF’s sales rose 10.8%, from $2.8 billion in 2011 to $3.1 billion in 2014....
C.R. BARD INC. $215 (New York symbol BCR; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 73.5 million; Market cap: $15.8 billion; Price-to-sales ratio: 4.5; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www. crbard.com) makes medical devices in four main areas: oncology products that detect and treat various types of cancer; vascular products such as stents and catheters; urology goods, including drainage and incontinence devices; and surgical tools....
DIEBOLD INC. $29 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 75.1 million; Market cap: $2.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.3%; TSINetwork Rating: Average; www.dieboldnixdorf.com) has completed its acquisition of Germany’s Wincor Nixdorf AG for $1.8 billion in cash and shares....
These two firms make products that help other companies lower their costs. Both are now taking steps to strengthen their long-term prospects. But it will take some time for those moves to pay off.
TERADATA CORP. $32 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 130.4 million; Market cap: $4.2 billion; Price-to-sales ratio: 1.7; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software that capture and store large amounts of a business’s data....
TERADATA CORP. $32 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 130.4 million; Market cap: $4.2 billion; Price-to-sales ratio: 1.7; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software that capture and store large amounts of a business’s data....
VISA INC. $80 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.4 billion; Market cap: $192.0 billion; Price-to-sales ratio: 13.3; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.visa.com) gets most of its revenue from the fees it charges credit- and debit-card issuers and merchants that use its electronic payments network....
We advise investors to diversify their Finance sector holdings with non-bank stocks such as the four we analyze below. All are leaders in their niche fields, which helps cut their risk. Three are also spinoffs from larger firms. That has spurred their share prices....
HOME CAPITAL GROUP INC. $29 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 65.7 million; Market cap; $1.9 billion; Price-to-sales ratio: 3.4; Dividend yield: 3.3%; TSINetwork Rating: Average; www.homecapital.com) paid $23.2 million for Canadian First Financial Bank (now called Home Bank) in 2015....
Oil prices fell from over $90 U.S. a barrel in 2014 to a recent low of $30. Prices have since rebounded to over $40 but it’s possible that they will remain low for some time. That adds risk for these three firms that service oil producers.
Recent cost cutting by all three will help them thrive when crude prices move higher....
Recent cost cutting by all three will help them thrive when crude prices move higher....
The rise in online shopping has weighed on the stock prices of these three retailers. But recent investments in their own online businesses, and their well-known brands, should pay off. Still, two of the three stocks could move lower in the short term.
MACY’S INC....
MACY’S INC....