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.
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For 2025, we have selected three stocks—one each from our Conservative, Aggressive and Income portfolios—that offer you such a winning hand....
In the quarter ended September 30, 2024, revenue declined 4.9%, to $1.95 billion from $2.05 billion a year earlier....
The stock dropped over 20% recently after the company said its revenue would likely rise 1.5% in 2024 compared to its earlier prediction for 5% growth....
Howmet’s revenue in the third quarter of 2024 rose 10.7%, to $1.84 billion from $1.66 billion a year earlier....
The shares of aerospace equipment maker RTX are up 65% since dropping to $69 in October 2023 on the news of a defective jet engine recall. The share price jump is largely because the company significantly expanded its capacity to handle these repairs, which has helped it speed up that work.
We feel the stock still has plenty of room to move higher in 2025, as the conflicts in Ukraine and the Middle East spur demand for its military equipment, particularly the Patriot surface-to-air missile system....
ALCON, $85.54, is a buy. The firm (New York symbol ALC; TSINetwork Rating: Extra Risk) (www.alcon.com; Shares outstanding: 499.7 million; Market cap: $42.3 billion; Dividend yield 0.3%) is the world’s biggest eye-care company....
PAGERDUTY INC., $19.60, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (pagerduty.com; Shares o/s: 90.2 million; Market cap: $1.8 billion; No divd.) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of incidents that could harm operations.
For the three months ended October 31, 2024, revenue rose 6.4%, to $118.9 million from $108.7 million a year earlier....