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
ALLIANT ENERGY CORP. $62 (New York symbol LNT; Income Portfolio, Utilities sector; Shares outstanding: 113.4 million; Market cap: $7.0 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.8%; TSINetwork Rating: Average; www.alliantenergy.com) sells power and natural gas to 1.4 million clients in Wisconsin, Iowa and Minnesota. The company has raised its quarterly dividend by 6.8% with the February 2016 payment, to $0.5875 from $0.55. The new annual rate of $2.35 yields 3.8%. Alliant has paid quarterly dividends since 1946 and has raised the annual rate each year since 2004. Alliant Energy is a buy....
WELLS FARGO & CO. $49 (New York symbol WFC; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 5.1 billion; Market cap: $249.9 billion; Price-to-sales ratio: 2.9; Dividend yield: 3.1%; TSINetwork Rating: Average; www.wellsfargo .com) earned $21.6 billion in 2015, down 1.0% from $21.8 billion in 2014. However, earnings per share rose 1.2%, to $4.15 from $4.10, on fewer shares outstanding. Revenue gained 2.0%, to $86.1 billion from $84.3 billion. Low interest rates continue to spur demand for residential mortgages, business and car loans while encouraging consumers to make more credit card purchases. The bank also recently bought the commercial lending and leasing operations of General Electric (see page 18). Those businesses offer loans to help manufacturers boost their inventory, as well as other forms of financing. However, Wells Fargo is earning less interest income on its loans, which hurts its earnings. Higher salaries and federal deposit insurance premiums also slowed its profit growth....
GENERAL ELECTRIC CO. $28 (New York symbol GE; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 10.1 billion; Market cap: $282.8 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.ge.com) has agreed to sell $157 billion in assets of its GE Capital financing division. So far, it has completed transactions equalling $104 billion. These sales are part of GE’s plan to focus on its industrial businesses, including jet engines, power plant equipment, medical gear and locomotives.
Shrinking GE Capital cuts risk
...
FORD MOTOR CO. $12 (www.ford.com) will pay a special dividend of $0.25 a share in March 2016. That’s in addition to its regular quarterly dividend of $0.15; the annual rate of $0.60 yields 5.0%. Buy. DIEBOLD INC. $27 (www.diebold.com) has formed a new joint venture with Inspur Group, a Chinese cloud computing and data centre company. Diebold will own 49% of this business, which will develop automated teller machines (ATMs) and self-serve kiosks for Chinese banks. The deal should help Diebold profit as banks in that country modernize their ATMs. Buy. TENNANT CO. $52 (www.tennantco.com) continues to see strong demand for its floor-cleaning machines featuring its ec-H20 technology; that uses electricity to make tap water act like a detergent. Earnings per share in the third quarter of 2015 rose 7.9%, to $0.68 from $0.63 a year earlier. However, sales rose just 1.1%, to $204.8 million from $202.6 million. That’s mainly because the higher U.S. dollar continues to hurt the contribution of its overseas sales. Hold....
PLEASE NOTE: One week from today, on January 29, 2016, shortly after the stock market closes at 4:00 p.m. Toronto time, we will reveal our top U.S. stocks for 2016 to subscribers of Wall Street Stock Forecaster.
You can be among the first to hear about our top picks for 2016....
You can be among the first to hear about our top picks for 2016....
PLEASE NOTE: Today, Pat McKeough revealed his Top 3 Aggressive Stocks of the Year in Stock Pickers Digest. You can still be among the first to see these picks and act on his recommendations.
And you can save on a full year of Pat’s top stock recommendations in Stock Pickers Digest…starting with a 30-day free trial.
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WAL-MART STORES INC., $62.68, New York symbol WMT, is closing 269 of its less profitable stores; it currently has 11,600 outlets worldwide.
Of the total, 154 will be in the U.S., including all 102 of its smaller Walmart Express locations....
And you can save on a full year of Pat’s top stock recommendations in Stock Pickers Digest…starting with a 30-day free trial.
Choose your best price now
WAL-MART STORES INC., $62.68, New York symbol WMT, is closing 269 of its less profitable stores; it currently has 11,600 outlets worldwide.
Of the total, 154 will be in the U.S., including all 102 of its smaller Walmart Express locations....
We’re still positive on the long-term outlook for stocks. But in a time of rising market volatility, plunging commodity prices and international tension, it’s more important than ever to diversify, rather than focus on a single pick of the year. Moreover, we find lots of attractive long-term buys among the stocks we cover.
With that in mind, we’ve chosen to highlight three picks from our Stock Pickers Digest recommendations....
With that in mind, we’ve chosen to highlight three picks from our Stock Pickers Digest recommendations....
BIRCHCLIFF ENERGY $3.35 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 152.3 million; Market cap: $461.5 million; No dividends paid) develops, produces and explores for oil and gas in Western Canada. In the quarter ended September 30, 2015, Birchcliff’s cash flow per share dropped 42.0%, to $0.29 from $0.50 a year earlier. Sharply lower oil and gas prices offset a 12.3% production rise. Now more than ever, it’s crucial for oil and gas producers to have sound balance sheets that can weather a long downturn....
NISSAN MOTOR (ADR) $18.07 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding 2.3 billion; Market cap: $42.8 billion; Yield: 3.3%) is Japan’s second-largest automaker, after Toyota and ahead of Honda. In December 2015, the company sold a record 139,300 vehicles in the U.S., up 18.7% from 117,318 in December 2014. Sales of crossovers, trucks and SUVs (46% of the total) jumped 43.9%, thanks to new models such as its updated Rogue (up 78.0%) and Murano (up 62.2%)....
CHIPOTLE MEXICAN GRILL $465.50 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.2 million; Market cap: $14.6 billion; No dividends paid) continues to suffer as it copes with food-safety concerns at its restaurants. In October and November 2015, E. coli infections sickened 52 customers at Chipotle locations in nine states and forced the company to temporarily close some outlets. Recent norovirus outbreaks at restaurants in California and Massachusetts have added to the bad publicity. Norovirus, which causes stomach problems, is highly infectious, though not fatal. Chipotle now believes these problems cut its same-restaurant sales by 14.6% in the fourth quarter of 2015. It also expects to spend $14.0 million to $16.0 million to test and replace food and improve its food-safety procedures....