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
RESTAURANT BRANDS INTERNATIONAL INC. $43 (www. rbi.com) earned $0.30 a share in the three months ended June 30, 2015, up 25.0% from $0.24 a year earlier. These figures exclude costs related to Burger King Worldwide’s December 2014 acquisition of Tim Hortons....
APPLE INC., $124.50, Nasdaq symbol AAPL, reported better-than-expected quarterly results this week. However, concerns about slowing iPhone demand and uncertainty surrounding sales of its new Apple Watch caused the stock to fall 4%. In its fiscal 2015 third quarter, which ended June 27, 2015, Apple sold 47.5 million iPhones, up 35.0% from 35.2 million a year earlier, mainly due to strong demand in China. Even so, the latest total missed the consensus forecast of 48.8 million, probably because users are waiting for the company to release a new version later this year. Earnings jumped 37.8% to $10.7 billion from $7.7 billion. Per-share profits gained 44.5%, to $1.85 from $1.28, on fewer shares outstanding. That beat the consensus estimate of $1.81....
NEW GOLD INC., $2.85, symbol NGD on Toronto, recently started building a mine at its 100%-owned Rainy River project in Ontario. It aims to start production in mid-2017 at an average of 325,000 ounces of gold annually over nine years (along with silver as a by-product). The company has now entered into a $175-million streaming agreement with Royal Gold (Nasdaq symbol RGLD) to help fund Rainy River (all figures except share price in U.S. dollars). Royal will pay $100 million at the start of the deal and the remaining $75 million when the mine is 60% complete (projected at mid-2016)....
ALIMENTATION COUCHE-TARD $57.58 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $32.7 billion; Dividend yield: 0.4%) completed its $1.7-billion acquisition of The Pantry in March 2015. The move added 1,500 convenience stores in 13 southern U.S. states, bringing Couche-Tard’s total to 7,848 locations throughout North America. In Europe, the company operates 2,230 stores across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltic states (Estonia, Latvia and Lithuania) and Russia. In the three months ended April 26, 2015, Couche-Tard’s sales fell 18.6%, to $7.29 billion from $8.95 billion a year earlier (all figures except share price in U.S. dollars)....
AMAZON.COM $488.27 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 465.7 million; Market cap: $227.3 billion; No dividends paid) continues to excel in a range of businesses; its shares are now at all-time highs. The company is a major online retailer that’s growing quickly in new areas. For example, Amazon Web Services offers cloud services through 11 data centres worldwide. It accounts for just 7% of Amazon’s sales, but that’s growing at over 50% a year. However, when Amazon enters a new line of business, it’s happy to make little profit, or even lose money. This is an appropriate growth strategy. Eventually, competitors will catch up with its technology and business practices. In the meantime, it focuses on building a large and loyal clientele....
SHERRITT INTERNATIONAL $1.62 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704- 6698; www.sherritt.com; Shares outstanding: 293.6 million; Market cap: $472.6 million; Dividend yield: 2.5%) sold all of its coal interests for $793 million in cash in April 2014. The company is now focused on nickel production, with operations in Cuba and Canada. As well, it has a 40% interest in the Ambatovy nickel mine on the island nation of Madagascar, off Africa’s east coast. Sherritt also produces oil and gas in Cuba, Spain and Pakistan and manages 506 megawatts of power generation capacity in Cuba. In the three months ended March 31, 2015, the company’s revenue fell 31.4%, to $82.9 million from $120.9 million a year earlier, mostly due to lower oil and gas prices. Cash flow per share declined 32.0%, to $0.17 from $0.25....
IAMGOLD $1.65 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 391.3 million; Market cap: $688.8 million; No dividends paid) believes Burkina Faso’s upcoming parliamentary vote on an updated mining code will have no effect on its Essakane mine’s profits. Burkina Faso, a landlocked nation in West Africa, is that continent’s fourth-largest gold producer; the precious metal accounts for about 20% of its gross domestic product. The new code is expected to abolish a 10% tax break on miners’ profits. However, Burkina Faso will honour clauses in existing deals. As well, the new code should also end uncertainty surrounding the current 12-yearold mining regulations....
RUSSEL METALS $21.58 (Toronto symbol RUS; TSINetwork Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 61.7 million; Market cap: $1.3 billion; Dividend yield: 7.0%) is one of North America’s largest metal distributors, serving 39,000 clients at 53 locations in Canada and 12 in the U.S. In the three months ended March 31, 2015, Russel’s revenue fell 2.2%, to $903.9 million from $924.0 million a year earlier. The company’s metal-services business saw its sales rise slightly, but the energyproducts division, which supplies pipes for oil and gas drillers, reported a 14% sales decline. Earnings fell 36.2%, to $18.5 million, or $0.30 a share, from $29.0 million, or $0.47. Russel’s earnings fell faster than revenue because steel prices declined in the latest quarter. That cuts the company’s profit margins and causes it to suffer losses on its inventory....
NISSAN MOTOR (ADR) $19.78 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding 2.3 billion; Market cap: $44.5 billion; Dividend yield: 3.0%) continues to sell record numbers of its Rogue crossovers in the U.S. In response, the company will export the model from Japan to North America beginning next spring. This will supplement current Rogue production from plants in Tennessee and South Korea. Crossovers look like sport utility vehicles but have a car rather than a truck chassis. They’re among the top-selling vehicles in the U.S. right now. What’s more, the weak yen will let Nissan realize higher profits from Rogues it makes in Japan and sells in the U.S., compared to vehicles it makes and sells in the U.S....
ADOBE SYSTEMS INC. $80.73 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 497.6 million; Market cap: $40.4 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format. Graphic designers also use its programs to create print publications and web pages. In its fiscal 2015 second quarter, which ended May 29, 2015, Adobe earned $0.48 a share, up 29.7% from $0.37 a year earlier. Revenue gained 8.8%, to a record $1.2 billion from $1.1 billion. The company continues to shift away from selling software as a one-time purchase and toward a subscription model. It now gets 72% of its revenue from recurring sources, compared to 55% a year ago....