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
WYNDHAM WORLDWIDE CORP., $67.35, symbol WYN on New York, reported higher revenue and earnings in the latest quarter, and the shares rose to a new all-time high. In the three months ended September 30, 2013, the hotel and resort operator’s revenue rose 12.8%, to $1.43 billion from $1.27 billion a year earlier. The company gets most of its revenue from vacation rather than business travel, and vacation bookings rose in the latest quarter. That helped push up Wyndham’s occupancy rate by 1.9%. Before one-time items, earnings rose 24.8%, to $1.41 a share from $1.13. The company continues to buy back its stock. In the latest quarter, it repurchased 2.7 million shares for $160 million. In 2012, it bought back 12.9 million shares for $623 million....
United Technologies operates in two highly cyclical markets: building construction and aerospace. It gets around 20% of its revenue from military clients, so recent government cuts to defence spending also add to its risk.
However, the company is in a strong position to profit from several long-term trends.
For example, sales of its jet engines should rise as airlines replace their aging fleets....
However, the company is in a strong position to profit from several long-term trends.
For example, sales of its jet engines should rise as airlines replace their aging fleets....
GENERAL ELECTRIC CO. $26 (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 10.2 billion; Market cap: $265.2 billion; Price-to-sales ratio: 1.9; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.ge.com) continues to shrink its GE Capital subsidiary, which provides loans and other financial services to buyers of its industrial products, such as power-transmission gear, jet engines and locomotives.
GE Capital supplies around 30% of GE’s overall revenue and earnings....
GE Capital supplies around 30% of GE’s overall revenue and earnings....
For many years, these three technology firms have dominated their markets. However, rapidly changing consumer tastes and business trends have hurt their recent growth.
Their strong brands and reputations will help them overcome these challenges, but their shares will probably continue to move sideways for some time.
HEWLETT-PACKARD CO....
Their strong brands and reputations will help them overcome these challenges, but their shares will probably continue to move sideways for some time.
HEWLETT-PACKARD CO....
WAL-MART STORES INC. $76 (New York symbol WMT; Conservative Growth Portfolio: Consumer sector; Shares outstanding: 3.3 billion; Market cap: $250.8 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.walmart. com) is ending its joint venture in India with Bharti Enterprises.
Under the terms of the breakup, Wal-Mart will own 100% of 20 Best Price Modern Wholesale stores, which sell a wide variety of food and other goods to restaurants and other businesses....
Under the terms of the breakup, Wal-Mart will own 100% of 20 Best Price Modern Wholesale stores, which sell a wide variety of food and other goods to restaurants and other businesses....
NVIDIA CORP. $16 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 578.6 million; Market cap: $9.3 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.9%; TSINetwork Rating: Average; www.nvidia .com) earned $133.3 million in the three months ended July 28, 2013, down 21.8% from $170.4 million a year earlier....
Overseas expansion enhances these two companies’ prospects, but only one is a buy right now.
DIAGEO PLC ADRs $131 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 627.6 million; Market cap: $82.2 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.diageo.com) is the world’s largest premium alcoholic beverage company....
DIAGEO PLC ADRs $131 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 627.6 million; Market cap: $82.2 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.diageo.com) is the world’s largest premium alcoholic beverage company....
ALCOA INC. $9.27 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.1 billion; Market cap: $10.2 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.3%; TSINetwork Rating: Average; www.alcoa.com) owns 25.1% of a joint venture that operates a new aluminum smelter in Saudi Arabia; a state-owned mining company owns the remaining 74.9%.
This facility recently suffered problems while ramping up its production, which forced it to shut down one of its two production lines....
This facility recently suffered problems while ramping up its production, which forced it to shut down one of its two production lines....
Rising automobile sales (see box this page) are good news for Genuine Parts and Snap-On, because more cars on the road means higher demand for repairs and replacement parts.
That’s largely why both stocks are up around 30% in the past year. However, they are now expensive in relation to their immediate prospects.
GENUINE PARTS CO....
That’s largely why both stocks are up around 30% in the past year. However, they are now expensive in relation to their immediate prospects.
GENUINE PARTS CO....
FORD MOTOR CO. $18 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $70.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.2%; TSINetwork Rating: Extra Risk; www.ford.com) sold 185,146 vehicles in the U.S....