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
AMAZON.COM INC., $310.89, symbol AMZN on Nasdaq, won a $600-million deal to build a cloud computing service for the U.S Central Intelligence Agency early this year. This system would let the CIA more effectively connect with the broader intelligence community. The project will run over four years. However, the CIA has traditionally awarded many of its big computing contracts to IBM (New York symbol IBM), a recommendation of our Wall Street Stock Forecaster newsletter. IBM protested the awarding of this deal to Amazon, and the U.S. Government Accountability Office recommended that the CIA reopen negotiations. Immediately afterward, Amazon filed a complaint, which then led to a hearing on Monday of this week....
MONSANTO CO., $105.63, New York symbol MON, is buying Climate Corp., a private company that specializes in weather forecasting software and climate models. These products help farmers decide when to plant their crops in order to maximize their harvests. This technology will also help Monsanto develop genetically engineered seeds for specific regions and weather conditions. The company will pay $930 million for Climate Corp. when the deal closes in the next few weeks. Meanwhile, Monsanto earned $2.5 billion, or $4.60 a share, in its 2013 fiscal year, which ended August 31, 2013. That’s up 21.4% from $2.0 billion, or $3.79 a share, in 2012....
TRILOGY ENERGY CORP., $28.36, symbol TET on Toronto, is up over 9% since last week after it announced positive results from the 9-10 well at its Kaybob Montney operations in Alberta. Trilogy used horizontal drilling, which involves drilling down and then “across” to oil deposits, to reach the oil in the Kaybob Montney pool. It then used fracturing—collapsing rock using sand pumped at high pressure—to bring the oil to the surface. The well flowed at an early-stage rate of 438 barrels a day. To put that in perspective, Trilogy’s daily production averages 37,209 barrels of oil equivalent (including gas). The successful production also indicates that the oil pool likely extends beyond the previously identified boundaries....
J.C. PENNEY CO., INC., $9.05, New York symbol JCP, fell 13% on Friday after the company announced that it is selling 84.0 million new common shares to the public at $9.65 each. Underwriters have an option to buy an additional 12.6 million shares. The potential 96.6 million new shares would increase the total outstanding by 44%. The department store operator will probably use the $932-million proceeds to build up its inventories ahead of the busy Christmas shopping season. Penney is also making progress with its plan to win back shoppers it alienated under a failed everyday low price strategy. The company expects to report positive same-store sales in the fourth quarter of its 2014 fiscal year, which ends January 31, 2014. In the second quarter, same-store sales fell 11.9%. As well, sales through its website continue to improve....
AMAZON.COM INC., $316.01, symbol AMZN on Nasdaq, has unveiled two new versions of its Kindle tablet computer, as the company aims to increase its small share of the highly competitive tablet market. Amazon has an estimated 5% of the U.S. tablet market, compared to 51% for the Apple iPad and 19% for Samsung. The company will continue to offer its lower-end Kindle Fire HD, with a seven-inch screen, for $139. However, it is now introducing a new seven-inch Kindle Fire HDX starting at $229 and an 8.9-inch Kindle Fire HDX starting at $379....
Verizon’s shares dropped 4% after the company announced that it is buying full control of its wireless joint venture in early September 2013. That’s mainly because investors fear that Verizon is paying too much.
As well, big acquisitions like this usually involve substantial risk....
As well, big acquisitions like this usually involve substantial risk....
CONAGRA FOODS INC. $30 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 419.5 million; Market cap: $12.6 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.conagrafoods.com) reported that its sales rose 27.2% in its fiscal 2014 first quarter, which ended August 25, 2013, to $4.2 billion from $3.3 billion a year earlier.
That’s mainly due to private-label food maker Ralcorp, which it bought for $4.75 billion in January 2013....
That’s mainly due to private-label food maker Ralcorp, which it bought for $4.75 billion in January 2013....
Small cap stocks are companies with market caps (or the value of all their outstanding shares) below $2 billion, or some other arbitrary figure.
Many investors avoid small caps like the four we analyze below, because they’re generally more volatile than large cap stocks....
Many investors avoid small caps like the four we analyze below, because they’re generally more volatile than large cap stocks....
J.P. MORGAN CHASE & CO. $52 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.8 billion; Market cap: $197.6 billion; Price-to-sales ratio: 1.9; Dividend yield: 2.9%; TSINetwork Rating: Average; www.jpmorganchase.com) has agreed to pay a total of $920 million in fines to U.S....
CINTAS CORP. $51 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 120.8 million; Market cap: $6.2 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cintas- .com) designs and makes uniforms, which it sells to over 900,000 businesses, mainly in North America....