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
YAMANA GOLD INC., $9.50, symbol YRI on Toronto, is teaming up with Osisko Mining (symbol OSK on Toronto) to thwart a hostile takeover bid by Goldcorp (symbol G) for Osisko. Osisko owns the Canadian Malartic mine in Quebec, which is forecast to produce 525,000 to 575,000 ounces of gold this year. Yamana will provide $441.5 million in cash and $929.6 million worth of its shares, to buy a 50% interest in all of Osisko’s mining and exploration assets, including Canadian Malartic. The offer is roughly 22% higher than Goldcorp’s bid....
BAXTER INTERNATIONAL INC., $72.85, Toronto symbol BAX, rose 8% this week on news that it plans to split into two separate public companies. One will focus on medical devices, such as intravenous pumps and kidney-dialysis equipment. This business’s revenue was $8.7 billion, or 57% of Baxter’s $15.3-billion total, in 2013. The other firm will make biopharmaceutical products, including vaccines and drugs for hemophilia. Its 2013 revenue was $6.6 billion....
CARFINCO FINANCIAL GROUP INC., $9.71, symbol CFN on Toronto, provides car loans to consumers who don’t meet the criteria of traditional lenders, like banks. In September 2013, Carfinco expanded into the U.S. through its $9.5-million purchase of Persian Acceptance Corp., an automotive lender that also caters to less-affluent borrowers. The acquisition increased Carfinco’s loans outstanding by 22%. In the three months ended December 31, 2013, the company’s revenue rose 29.6%, to $24.9 million from $19.2 million a year earlier. Carfinco loaned $46.0 million in the quarter, up 14.8% from $40.1 million....
McDonald’s shares have moved sideways in the past few months, mainly because strong competition in the U.S. has hurt the company’s sales there.
However, McDonald’s has overcome many challenges in its long history. It faces constant attacks from health, environmental and labour activists....
However, McDonald’s has overcome many challenges in its long history. It faces constant attacks from health, environmental and labour activists....
CISCO SYSTEMS INC. $22 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.2 billion; Market cap: $114.4 billion; Priceto- sales ratio: 2.5; Dividend yield 3.4%; TSINetwork Rating: Average; www.cisco.com) plans to invest $1 billion over the next two years on building a new cloud-computing service, which will let businesses lease data processing and storage systems instead of buying their own.
This is a small investment for Cisco, which earned $2.5 billion, or $0.47 a share, in its latest quarter....
This is a small investment for Cisco, which earned $2.5 billion, or $0.47 a share, in its latest quarter....
These four small-cap Manufacturing & Industry picks are riskier than most of our large-cap selections in that sector. However, they’re all market leaders with strong reputations, which makes it harder for new competitors to steal their customers.
Moreover, all four are using their strong balance sheets to invest in new products and make acquisitions....
Moreover, all four are using their strong balance sheets to invest in new products and make acquisitions....
PHILIPS ELECTRONICS N.V. ADRs $34 (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 913.3 million; Market cap: $31.1 billion; Priceto- sales ratio: 1.0; Dividend yield: 2.9%; TSINetwork Rating: Average; www.philips.com) has agreed to merge its LED (light emitting diode) lighting product business in Saudi Arabia with local firm General Lighting.
As part of the deal, Philips will also contribute $235 million, which is equal to 42% of the $566 million, or $0.59 per ADR, that it earned in the quarter ended December 31, 2013....
As part of the deal, Philips will also contribute $235 million, which is equal to 42% of the $566 million, or $0.59 per ADR, that it earned in the quarter ended December 31, 2013....
CINTAS CORP. $59 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 120.1 million; Market cap: $7.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cintas .com) is selling its document-shredding operations to Toronto-based Shred-it International....
GENERAL MILLS INC. $51 (New York symbol GIS, Conservative Growth Portfolio, Consumer sector; Shares outstanding: 614.5 million; Market cap: $31.3 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.generalmills.com) is one of the world’s largest food makers....
These two firms play increasingly important roles in the financial services industry. That’s because they help banks and other institutions cut their credit risk and comply with increasingly complex regulations. Both stocks are up sharply in the past year, but we feel they still have room to rise.
BROADRIDGE FINANCIAL SERVICES INC....
BROADRIDGE FINANCIAL SERVICES INC....