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
TEMPUR SEALY $47.05 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 60.4 million; Market cap: $2.8 billion; No dividends paid) is the new name of Tempur-Pedic after its March 2013 purchase of rival Sealy Corp....
CHEMTRADE LOGISTICS INCOME FUND $17.09 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 41.7 million; Market cap: $709.7 million; Dividend yield: 7.0%) is in talks to buy specialty chemicals maker General Chemical Corp....
WAJAX CORP. $35.72 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $601.2 million; Dividend yield: 6.7%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).
The company’s customers are in the resource, construction, manufacturing and transportation industries.
In the three months ended September 30, 2013, Wajax’s revenue declined 5.0%, to $338.5 million from $356.4 million a year earlier....
The company’s customers are in the resource, construction, manufacturing and transportation industries.
In the three months ended September 30, 2013, Wajax’s revenue declined 5.0%, to $338.5 million from $356.4 million a year earlier....
AASTRA TECHNOLOGIES, $36.16, symbol AAH on Toronto, jumped over 29% this week after the company said it has agreed to a friendly takeover offer from Mitel Networks (symbol MNW on Toronto). Mitel is offering $6.52 U.S. in cash and 3.6 Mitel common shares for each share of Aastra. Based on today’s price for Mitel stock, the offer is worth $37.16 per Aastra share. Aastra develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centred around business telephone systems and includes products that integrate land lines and mobile phones....
CISCO SYSTEMS INC., $21.53, Nasdaq symbol CSCO, reported higher-than-expected earnings in its latest quarter. However, it expects weaker sales in the current quarter. That caused the stock to drop 8% this week. The company is a leading maker of hardware and software that links and manages computer networks. Its hardware includes routers, local area network (LAN) and asynchronous transfer mode (ATM) switches, and dial-up access servers. In Cisco’s 2014 first quarter, which ended October 26, 2013, its earnings rose 11.6%, to $2.9 billion from $2.6 billion a year earlier. Earnings per share rose 10.4%, to $0.53 from $0.48, on more shares outstanding....
DUN & BRADSTREET CORP., $111.45, New York symbol DNB, provides credit reports on over 230 million companies. Its clients use this information to make lending and buying decisions. In the three months ended September 30, 2013, Dun & Bradstreet’s earnings fell 8.5%, to $72.8 million from $79.6 million a year earlier. The company spent $55.0 million on share buybacks in the quarter. Due to fewer shares outstanding, earnings per share rose 6.3%, to $1.87 from $1.76. The lower overall earnings are partly because the company continues to invest in new products and improve the quality of its data. It has also discontinued less profitable products and closed unneeded facilities, which resulted in one-time severance payments and other costs....
DUNDEE REIT, $28.25, symbol D.UN on Toronto, owns and manages 24.3 million square feet of office and retail space. The real estate investment trust has a 94.9% occupancy rate. As the Canadian economy improves, the trend in interest rates is likely to be upward. That rise—or the anticipation of an increase—can push down prices of REITs and high-yielding stocks, such as utilities. That’s largely why a number of REITs, including Dundee, have moved down lately. When interest rates rise, REITs may suffer because they have a lot of mortgage debt, and it’s more expensive to raise money and refinance existing loans. As well, their units, which typically offer high yields, compete with fixed-income instruments for investor interest....
CAMECO CORP., $19.76, symbol CCO on Toronto, is the world’s largest uranium producer. It supplies 14% of global production and has large, high-grade reserves, low-cost operations, significant market share and a number of uranium mines. Cameco’s exploration efforts are now focused in Canada, Australia, Kazakhstan and the U.S. However, it may now consider Greenland for potential uranium exploration projects. That’s because Greenland’s parliament has agreed to remove a 25-year-old ban on uranium mining. The government is hoping that revenue from mining will help it gain independence from Denmark. Greenland was a colony of Denmark, but gained semi-autonomy in 2008....
APPLE INC., $520.03, Nasdaq symbol AAPL, sold 33.8 million iPhones in the three months ended September 28, 2013. That’s up 25.6% from 26.9 million a year earlier. The gain is partly due to strong sales of its new premium 5S and lower-priced 5C models, which the company started selling just a few days before the end of the quarter. Strong demand in Latin America, the Middle East, Russia and India also contributed to the higher sales. As a result, Apple’s overall revenue in the quarter rose 4.2%, to $37.5 billion from $36.0 billion a year earlier. iPhones supplied 52% of the total....
MCKESSON CORP., $154.99, New York symbol MCK, rose 10% this week to a new all-time high after it agreed to buy Celesio AG, a Germany-based firm that distributes prescription drugs in Europe and Brazil. The company will pay $8.3 billion for Celesio, which includes its debt. This is a big purchase for McKesson, which has a market cap of $35.4 billion. The deal should close sometime in 2014. The combined company will have annual revenue of $150 billion, and will serve over 120,000 hospitals and pharmacies in more than 20 countries. That will cut McKesson’s reliance on the U.S., which currently accounts for 90% of its revenue. The company’s bigger size will also help it negotiate lower prices from pharmaceutical makers....