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
AIMIA INC. $12.27 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-897-6800; www.aimia.com; Shares outstanding: 160.8 million; Market cap: $2.0 billion; Dividend yield: 6.2%) has announced that its members can now earn and redeem points for travel on Brazilian airline Avianca. This brings Aeroplan’s total number of airline partners to 34. Avianca offers 200 daily flights to 23 cities throughout Brazil, operating from its main hub at São Paulo-Guarulhos International Airport. Aimia is a buy....
SYMANTEC CORP. $21.86 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527- 8000; www.symantec.com; Shares outstanding: 680.7 million; Market cap: $14.8 billion; Dividend yield: 2.7%) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers. In 2014, Symantec said it would split into two publicly traded firms. One would keep the Symantec name and focus on antivirus and security software and services. The other, called Veritas Technologies, would consist of the company’s information management business, which makes products for data backup and recovery. However, Symantec has now decided to sell Veritas to a group of private investors for $8.0 billion. It expects to close the deal on January 1, 2016....
TOROMONT INDUSTRIES LTD. $36.75 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667- 5511; www.toromont.com; Shares outstanding: 77.6 million; Market cap: $2.9 billion; Dividend yield: 1.9%) distributes a broad range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division. The company completed the spinoff of Enerflex Ltd. (see right) in 2011. Shareholders received shares of both the new Toromont Industries and Enerflex. In the quarter ended June 30, 2015, Toromont’s revenue rose 16.6%, to $484.5 million from $415.6 million a year earlier. Earnings gained 26.1%, to $36.4 million, or $0.47 a share, from $28.9 million or $0.37....
SYMANTEC CORP., $21.60, Nasdaq symbol SYMC, sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers. In 2014, the company said it would split into two publicly traded firms. One would keep the Symantec name and focus on antivirus and security software and services. The other, called Veritas Technologies, would consist of Symantec’s information-management business, which makes products for data backup and recovery. However, the company has now decided to sell Veritas to a group of private investors for $8.0 billion. It expects to close the deal on January 1, 2016....
BROADRIDGE FINANCIAL SOLUTIONS INC., $56.31, symbol BR on New York, hit a new all-time high this week after reporting strong quarterly results. The company serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada. Without one-time items, the company earned $171.5 million in its fiscal 2015 fourth quarter, which ended June 30, 2015. That’s up 18.6% from $144.6 million a year earlier. Earnings per share rose 20.7%, to $1.40 from $1.16, on fewer shares outstanding, beating the consensus estimate of $1.38....
WESTJET AIRLINES LTD., $24.07, symbol WJA on Toronto, has announced that its pilots have rejected plans to form a union, with 55% voting against and 45% in favour. The result follows a June 2015 vote in which 82% of the company’s almost 3,000 flight attendants approved a new five-year work agreement. That deal was important because it ended a unionization drive some flight attendants started more than a year ago. The company has a great hidden asset in its non-union workforce, as many flyers find that it provides friendlier service than they get from unionized airlines. WestJet also benefits from the fact that most of its employees are shareholders....
BAXALTA INC., $37.60, New York symbol BXLT, makes vaccines and drugs in three main areas: hematology (blood diseases), immunology (immune system) and oncology (cancer). On July 1, 2015, Baxter International (New York symbol BAX) spun off Baxalta as a separate firm. Investors received one Baxalta share as a tax-deferred dividend for every Baxter share they held. Baxter still owns 19.5% of Baxalta and plans to sell or distribute these shares within five years. The stock jumped 14% this week in response to an unsolicited, all-stock takeover offer from Ireland-based Shire plc (Nasdaq symbol SHPG), a maker of drugs for rare and life-threatening diseases....
PFIZER INC., $36.07, New York symbol PFE, rose 5% this week after reporting better-than-expected results. It also raised its revenue and earnings forecast for all of 2015. Before unusual items, the company earned $3.5 billion in the three months ended June 30, 2015, down 6.5% from $3.8 billion a year earlier. Pfizer spent $6.0 billion on share buybacks during the first half of 2015. Due to fewer shares outstanding, earnings per share fell 3.4%, to $0.56 from $0.58, though that still beat the consensus forecast of $0.52. Revenue declined 7.2%, to $11.9 billion from $12.8 billion, but that was also ahead of the consensus forecast of $11.4 billion. Without the negative impact of currency rates, revenue rose 1%....
INTACT FINANCIAL CORP., $90.20, symbol IFC on Toronto, is Canada’s largest provider of property and casualty insurance, based on premiums. Its brands include Intact Insurance, Canada BrokerLink and belairdirect. In the three months ended June 30, 2015, Intact’s revenue rose 6.0%, to $2.34 billion from $2.21 billion a year earlier. Revenue improved across all of the company’s insurance lines and geographic regions. The early 2015 acquisition of Canadian Direct Insurance for $197 million also added to sales. Canadian Direct offers home, auto and travel insurance, mainly in Alberta and B.C. Earnings rose 1.9%, to $210 million, or $1.56 a share, from $206 million, or $1.53. Intact continues to write more profitable insurance policies and cut its operating costs....
Following the 2008 financial crisis, the U.S. Federal Reserve ordered banks and other big lenders to boost the capital (cash, bonds and other securities) they hold. That put them in a better position to absorb future loan losses. The Fed recently announced that starting in 2019, it will bring in tougher new capital requirements for the eight largest U.S. banks, including Wells Fargo and J.P. Morgan (see below). However, both Wells and Morgan have bolstered their balance sheets and unloaded many of their riskier businesses since the crisis. That should help them meet the new standards without having to issue new shares. WELLS FARGO & CO. $58 (New York symbol WFC; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 5.2 billion; Market cap: $301.6 billion; Price-to-sales ratio: 3.5; Dividend yield: 2.6%; TSINetwork Rating: Average; www.wellsfargo.com) operates through three divisions: Community Banking provides consumer mortgages, loans, credit cards and other financial services (57% of 2014 revenue, 59% of earnings); Wholesale Banking supplies business loans (27%, 32%); and Wealth, Brokerage and Retirement offers wealth management, brokerage and trust services to individuals and institutions, such as pension plans (16%, 9%). The U.S. supplies 95% of Wells Fargo’s revenue....