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:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. 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
YAMANA GOLD $4.38 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815-0220; www.- yamana.com; Shares outstanding: 880.8 million; Market cap: $3.9 billion; Dividend yield: 1.6%) owns eight operating gold mines in Mexico, Brazil, Chile and Argentina. It also holds a 12.5% stake in the Alumbrera copper/gold mine in Argentina and has a number of other properties in advanced stages of development. Yamana now plans to form a subsidiary to hold some of its Brazilian assets. This will let the company focus on its main projects, including the Canadian Malartic gold mine in Quebec, in which it owns a 50% stake. The new subsidiary, to be named Brio Gold Inc., will hold Yamana’s Fazenda Brasileiro and Pilar gold mines, as well as its C1 Santa Luz development project. Yamana will retain its Chapada and Jacobina mines in Brazil....
RESTAURANT BRANDS INTERNATIONAL $42.73 (Toronto symbol QSR; TSINetwork Rating: Average) (212-333-3810; www.rbi.com; Shares outstanding: 483.3 million; Market cap: $20.7 billion; Dividend yield: n/a) is the new company formed by the merger of Tim Hortons (old symbol THI) and Burger King Worldwide (old symbol BKW). Restaurant Brands is the world’s thirdlargest fast-food chain, after McDonald’s and Yum Brands, with 14,000 Burger King restaurants and 4,590 Tim Hortons outlets in 100 countries. In all, these locations have annual sales of over $23 billion. Roughly 72% of Tim Hortons shareholders opted to receive 3.0879 shares of the new company for each Tim Hortons share they held. A further 26% chose the default option of $65.50 (Canadian) in cash plus 0.8025 of a Restaurant Brands share, while 2% picked the all-cash option of $88.50 (Canadian) a share....
TEMPUR SEALY $53.95 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 60.9 million; Market cap: $3.3 billion; No dividends paid) completed its $1.3- billion purchase of rival Sealy in March 2013. This was a major acquisition for Tempur Sealy (formerly Tempur-Pedic), but it has let the company diversify into traditional spring-coil beds. The purchase is also helping Tempur Sealy offset rising competition in its current business; the company makes and distributes mattresses and neck pillows made of its Tempur material, which conforms to the body to provide support and alleviate pressure points. Competitors Simmons Bedding and Serta have both successfully launched memory-foam mattresses that directly compete with Tempur Sealy’s products....
TIM HORTONS INC., $85.92, New York symbol THI, has completed its merger with U.S.-based BURGER KING WORLDWIDE INC., $35.50, New York symbol BKW.

On Monday, December 15, 2014, the combined company, called Restaurant Brands International Inc., will begin trading on the Toronto and New York exchanges under the QSR symbol.

Restaurant Brands is the world’s third-largest fast-food restaurant operator, after McDonald’s and Yum Brands, with 14,000 Burger King restaurants and 4,590 Tim Hortons outlets in 100 countries. In all, these locations have annual sales of over $23 billion.

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TIM HORTONS INC., $99.00, symbol THI on Toronto, has completed its merger with U.S.-based BURGER KING WORLDWIDE INC., $35.50, symbol BKW on New York.

On Monday, December 15, 2014, the combined company, called Restaurant Brands International Inc., will begin trading on the Toronto and New York exchanges under the QSR symbol.

Restaurant Brands is the world’s third-largest fast-food restaurant operator, after McDonald’s and Yum Brands, with 14,000 Burger King restaurants and 4,590 Tim Hortons outlets in 100 countries. In all, these locations have annual sales of over $23 billion U.S.

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TIM HORTONS INC., $84.91, New York symbol THI, shareholders will vote on the friendly takeover offer from BURGER KING WORLDWIDE INC., $34.81, New York symbol BKW, on Tuesday, December 9, 2014. If the deal is approved, Tim Hortons investors will have a number of options: They can sell their shares on the New York exchange and receive the current trading price of $84.91 (less brokerage commissions). If they don’t do that, they can opt for one of the three choices below by notifying their brokers no later than 5:00 p.m. ET on Tuesday, December 9, 2014....
TIM HORTONS INC., $96.97, symbol THI on Toronto, shareholders will vote on the friendly takeover offer from BURGER KING WORLDWIDE, $34.81, symbol BKW on New York, on Tuesday, December 9, 2014. If the deal is approved, Tim Hortons investors will have a number of options: They can sell their shares on the Toronto exchange and receive the current trading price of $96.97 (less brokerage commissions). If they don’t do that, they can opt for one of the three choices below by notifying their brokers no later than 5:00 p.m. on Tuesday, December 9, 2014....
HEWLETT-PACKARD CO., $39.06, New York symbol HPQ, rose 5% this week after reporting quarterly earnings that matched the consensus estimate. In Hewlett’s fiscal 2014 fourth quarter, which ended October 31, 2014, its earnings rose 2.8%, to $2.01 billion from $1.96 billion a year earlier. Earnings per share gained 5.0%, to $1.06 from $1.01, on fewer shares outstanding. These figures exclude costs related to Hewlett’s multi-year restructuring plan, which includes merging its personal computer and printer divisions, simplifying its product lines and cutting jobs. Revenue fell 2.5%, to $28.4 billion from $29.1 billion, missing the consensus forecast of $28.8 billion....
REITMANS (CANADA) LTD., $5.94, symbol RET.A on Toronto, is shutting down its underperforming Smart Set chain. Over the next 18 months, it will close 31 locations and convert the other 76 to other banners, including Reitmans or Penningtons (plus-sizes). The closures will result in a $2.2-million charge in the current quarter. To put that in perspective, Reitmans earned $9.6 million, or $0.15 a share, in the three months ended August 2, 2014. That was down 5.9% from $10.2 million, or $0.16, a year earlier. Reitmans had tried rebranding Smart Set, which was selling lower-priced, fashionable clothing to young women, but its efforts were unsuccessful. Its plan involved shifting the stores toward women in their late 20s and early 30s, as well as raising prices....
United Technologies fell slightly in late November, after Louis Chenevert, its chief executive for the past six years, retired suddenly. However, new CEO Gregory Hayes (who is also a former vicepresident) will likely continue Chenevert’s focus on the company’s main aerospace and construction divisions. These businesses operate in cyclical markets, but their outlook is bright. Airlines are replacing their aging fleets, increasing demand for jet engines and other parts, while developing countries’ongoing urbanization fuels building-product sales. United Technologies also has another advantage many competitors can’t match: because of its many subsidiaries, it can offer construction clients an integrated package of building products, such as elevators, heating and fire-control systems....