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
IDEXX LABORATORIES INC. $98 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 52.5 million; Market cap: $5.1 billion; Price-to-sales ratio: 4.1; No dividends paid; TSINetwork Rating: Average; www.idexx.com) gets 85% of its sales by making equipment that veterinarians use to detect diseases in pets....
These two big electronics makers have seen their shares rise sharply since the start of 2013. That’s mainly because they have restructured and cut their operating costs. However, we prefer Philips for new buying, because its focus on medical equipment and lighting cuts its exposure to fickle consumer tastes.
PHILIPS ELECTRONICS N.V....
PHILIPS ELECTRONICS N.V....
YUM! BRANDS INC. $72 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 446.2 million; Market cap: $32.1 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.yum.com) has raised its quarterly dividend by 10.4%, to $0.37 a share from $0.335....
INTERNATIONAL BUSINESS MACHINES CORP. $189 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $207.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.ibm.com) continues to add to its software expertise.
The company recently paid an undisclosed sum for U.K.-based Daeja Image Systems....
The company recently paid an undisclosed sum for U.K.-based Daeja Image Systems....
ADOBE SYSTEMS INC. $52 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 502.3 million; Market cap: $26.1 billion; Price-to-sales ratio: 6.1; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) earned $164.4 million, or $0.32 a share, in its fiscal 2013 third quarter, which ended August 30, 2013....
CISCO SYSTEMS INC. $24 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.4 billion; Market cap: $129.6 billion; Price-to-sales ratio: 2.7; Dividend yield 2.8%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of hardware and software that links and manages computer networks....
MCDONALD’S CORP. $98 (www.mcdonalds.com) has increased its quarterly dividend by 5.2%, to $0.81 a share from $0.77. The new annual rate of $3.24 yields 3.3%. Best Buy.
3M COMPANY $120 (www.3m.com) makes over 55,000 consumer and industrial products....
3M COMPANY $120 (www.3m.com) makes over 55,000 consumer and industrial products....
AGILENT TECHNOLOGIES INC., $52.15, New York symbol A, plans to break itself into two publicly traded companies. The news caused the stock to rise 8% this week. One business will keep the Agilent name and focus on testing equipment for medical-research labs. This company’s revenue will be about $3.9 billion in its 2013 fiscal year, which ends October 31, 2013. It will pay a dividend comparable to Agilent’s current 0.9% yield. The second firm will make testing systems for improving electronics, such as cellphones and computer equipment. Its projected fiscal 2013 revenue is $2.9 billion. This company will not pay a dividend, at least initially....
AEROPOSTALE INC., $9.90, symbol ARO on New York, moved up over 15% this week on news that Sycamore Partners has taken a nearly 8% stake in the company. Sycamore is a New York-based private equity firm that specializes in consumer and retail investments. It has over $1 billion in capital under management. Earlier this year, Sycamore paid $600 million for Hot Topic, a U.S. teen retailer with over 800 mall-based stores; in December 2012, it made an unsuccessful $555-million bid for Billabong, the Australian surf wear company; and in early 2012, it bought Talbots, a struggling women’s wear chain, for about $400 million....
SYMANTEC CORP. $25.36 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 698.6 million; Market cap: $17.7 billion; Dividend yield: 2.4%) sells computer security technology, including anti-virus and email-filtering software, to businesses and consumers....