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.
Read More
Close
Growth Stocks Library Archives
AEROPOSTALE INC. $0.04 (symbol AROPQ on the U.S. over-the-counter market; TSINetwork Rating: Speculative) (646-485-5410; www.aeropostale.com; Shares outstanding: 80.0 million; Market cap: $2.5 million; No dividends paid) has delisted from the New York exchange and filed for Chapter 11 bankruptcy protection. The company has suffered along with many other retailers that focus on the teen market such as Abercrombie & Fitch and American Eagle. Declining mall traffic and the shift in customer spending from clothing to technology, such as cell phones and streaming media, have hurt sales. Aeropostale has also faced major competition from “fast-fashion” and off-price retailers. They continue to pull away teen customers with cheap, yet stylish goods. These rivals include H&M and Forever 21....
NISSAN MOTOR (ADR) $18.95 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding 2.2 billion; Market cap: $43.3 billion; Yield: 3.1%) has agreed to buy a 34% stake in Mitsubishi Motors for $2.18 billion U.S. The deal comes after Mitsubishi admitted to exaggerating the fuel efficiency of some of its vehicles. Its share price dropped about 43% on the disclosure. Nissan plans to let Mitsubishi remain a separate brand, with its own network of dealers. It won’t be involved in day-to-day operations. The agreement is a good fit for both companies. In the near term, it should boost consumer and investor confidence in Mitsubishi’s ability to put the emissions scandal behind it....
DEVON ENERGY CORP. $34.12 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235- 3611; www.dvn.com; Shares outstanding: 523.9 million; Market cap: $18.1 billion; Dividend yield: 0.7%) is one of the largest U.S.-based oil and natural gas explorers and producers. The company’s production mix is 38% natural gas and 62% oil. Devon’s daily output averaged 685,000 barrels of oil equivalent in the three months ended March 31, 2016—unchanged from a year earlier. However cash flow per share fell sharply, to $0.31 from $4.02. The decline is the result of lower oil and gas prices, as well as an unfavourable tax adjustment. Cuts key to Devon’s turnaround ...
NISSAN MOTOR CO., $18.86, symbol NSANY on Nasdaq, is Japan’s second-largest automaker, after Toyota and ahead of Honda. Nissan has now agreed to buy a 34% stake in Mitsubishi Motors for $2.18 billion U.S. Mitsubishi’s share price has dropped about 43% since the company admitted that it manipulated data to inflate mileage results for some of its vehicles. The deal is contingent on Nissan looking closely at Mitsubishi’s operations and not finding any new problems. The company plans to let Mitsubishi remain a separate brand, with its own network of dealers. It won’t be involved in day-to-day operations....
MONSANTO CORP., $99.94, New York symbol MON, develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also sells weed- and pest-control products. The stock jumped 11% this week on speculation that German chemical and pharmaceutical maker Bayer AG may launch a takeover bid for the company. A merger would help both firms compete with rivals Dow Chemical Co. and DuPont Co, which plan to merge later this year. As well, China National Chemical Corp. agreed in February 2016 to acquire Switzerland-based Syngenta AG....
PFIZER INC., $33.58, New York symbol PFE, is one of the world’s leading prescription-drug makers. Its top-selling brands include Lyrica (epilepsy), Celebrex (arthritis pain) and Enbrel (plaque psoriasis, rheumatoid arthritis). The company also makes over-the-counter medications and supplements, including Advil (pain relief), Centrum (vitamins) and Robitussin (cough syrup). In the three months ended March 31, 2016, earnings jumped 30.0%, to $4.2 billion from $3.2 billion a year earlier. Due to fewer shares outstanding, earnings per share gained 31.4%, to $0.67 from $0.51. That beat the consensus estimate of $0.55....
WEIGHT WATCHERS INTERNATIONAL, $12.35, symbol WTW on New York, offers weight-loss services in 23 countries. The company promotes a program of lifestyle changes through 36,000 weekly meetings and its website. Oprah Winfrey bought 10% of the company in October 2015. She also joined its board of directors. Her goal has been to promote the company and help it reverse a steady decline over the last few years. Weight Watchers reported a lower-than-expected loss in the latest quarter—and increased its membership for the first time in four years. The number of active subscribers stood at 3.06 million on April 2, 2016. That’s a 4.8% rise from 2.92 million a year ago....
RESTAURANT BRANDS INTERNATIONAL INC., $43.26, symbol QSR on New York, took its current form on December 12, 2014, after Burger King Worldwide acquired Tim Hortons. The company has 4,438 Tim Hortons locations and 15,008 Burger King outlets in 100 countries. It is now the world’s third-largest fast-food operator, after McDonald’s (No. 1) and Yum Brands (No. 2). If you exclude restructuring costs and other unusual items, Restaurant Brands earned $142.1 million in the three months ended March 31, 2016 (all amounts except share price in U.S. dollars). That’s up 92.3% from $73.9 million a year earlier. Due to more shares outstanding, earnings per share rose 87.5%, to $0.30 from $0.16. It was enough to beat the consensus estimate of $0.22. The higher profits came from lower costs and the introduction of more high-profit menu items....
APPLE INC., $93.74, Nasdaq symbol AAPL, gets about two-thirds of its revenue from its iPhone smartphone. The remaining third comes from sales of its Mac computers, iPad tablets, iPod music players and Apple watches as well as the software, movies and music sold through its iTunes online store. The company sold 51.2 million iPhones in its fiscal 2016 second quarter, which ended March 26, 2016. That’s down 16.3% from 61.2 million a year earlier. However, the year-earlier quarter benefited from strong demand for the recently released iPhone 6 model. iPhone sales will likely remain weak until Apple launches the iPhone 7 later this year. Sales of Mac computers and iPads also fell during the quarter. As a result, Apple’s overall sales declined 12.8%, to $50.6 billion from $58.0 billion a year earlier. That missed the consensus forecast of $51.9 billion....
In 2012, Procter & Gamble began a major restructuring that included selling dozens of its less-important brands, closing plants and cutting jobs. The company expects to finish the plan in the next few months. Those efforts will greatly improve Procter’s long-term profitability, and spur its stock price. Higher earnings will also give it more room to buy back shares and hike dividends. PROCTER & GAMBLE CO. $80 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $216.0 billion; Price-to-sales ratio: 3.0; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pg.com) is one of the world’s largest makers of household and personal care goods. It began operating in the U.S. in 1837, and now sells its products in over 180 countries. Overseas markets account for 60% of its total sales....