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
APACHE CORP., $82.17, New York symbol APA, produces oil and gas in the U.S., Canada, the U.K., Australia, Egypt and Argentina. The stock fell 2% this week on concerns that political uncertainty in Egypt could disrupt the company’s operations in that country. Egypt accounted for 27% of Apache’s revenue in 2012. The unrest could also make it harder for the company to sell its Egyptian assets, which had a book value of $7.3 billion as of December 31, 2012. To put that in context, Apache’s current market cap (or the value of all its outstanding shares) is $32.2 billion....
AEROPOSTALE INC., $13.87, symbol ARO on New York, is a mall-based retailer of casual clothing and accessories. The company has 976 Aeropostale stores in the U.S., Canada and Puerto Rico. It mainly sells its clothing to 14- to 17-year-olds. Aeropostale’s 132 P.S. from Aeropostale stores in the U.S. are aimed at seven- to 12-year-old elementary-school children. In November 2012, Aeropostale bought online women’s footwear and clothing retailer GoJane.com. The company now plans to launch the Aeropostale brand in Mexico through a licensing agreement with Distribuidora Liverpool, S.A. de C.V....
CONAGRA FOODS INC., $34.93, New York symbol CAG, rose 5% this week after it reported better-than-expected earnings. In its 2013 fiscal year, which ended May 26, 2013, ConAgra earned $773.9 million, or $1.85 a share. That’s up 65.4% from $467.9 million, or $1.12 a share, in 2012. These gains are mainly due to Ralcorp Holdings, the largest maker of private label food in the U.S., which ConAgra recently bought for $4.75 billion. If you disregard costs to integrate this purchase and other unusual items, ConAgra’s earnings would have risen 17.4%, to $2.16 a share from $1.84. On that basis, the latest earnings beat the consensus estimate of $2.15 a share....
AIMIA INC., $15.74, symbol AIM on Toronto, rose over 13% this week after TD Bank agreed to become the primary credit card issuer for Aeroplan, Aimia’s main loyalty program. TD is a recommendation of The Successful Investor, our newsletter that focuses on conservative Canadian investing. Aeroplan is Canada’s largest loyalty program, with over 4.6 million members who collect Aeroplan miles from participating companies. Members can exchange their miles for flights, car rentals, hotel rooms and merchandise. Under this new 10-year deal, which would begin January 1, 2014, TD will launch new credit cards under the Aeroplan banner, including cards for frequent flyers and small businesses....
Wal-Mart first expanded outside the U.S. in 1992, when it formed a joint venture to open stores in Mexico. It now operates in 26 foreign countries. These markets supply 29% of its revenue.
Rather than building its own stores in new countries, Wal-Mart typically buys local chains....
Rather than building its own stores in new countries, Wal-Mart typically buys local chains....
MONSANTO CO. $101 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 533.8 million; Market cap: $53.9 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.monsanto.com) reported that its sales in the three months ended May 31, 2013 rose 0.7%, to $4.25 billion from $4.22 billion a year earlier.
Sales of genetically modified seeds (72% of total sales) fell 2.4% on weaker demand for its soybean and cotton seeds....
Sales of genetically modified seeds (72% of total sales) fell 2.4% on weaker demand for its soybean and cotton seeds....
U.S. oil production is up 40% since 2008. That’slargely because of new technologies like hydraulicfracturing, or fracking. This involves injecting water,sand and chemicals to break up shale and other tightrock formations and allow access to the oil and gas.
The global economy continues to recover from therecession, so rising demand from industry and consumersshould help stabilize oil and gas prices, even asoutput from shale increases.
The best way to profit from this volatile industry isthrough companies with high-quality reserves and diverseoperations, such as these four....
The global economy continues to recover from therecession, so rising demand from industry and consumersshould help stabilize oil and gas prices, even asoutput from shale increases.
The best way to profit from this volatile industry isthrough companies with high-quality reserves and diverseoperations, such as these four....
TEXAS INSTRUMENTS INC. $35 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $38.5 billion; Price-to-sales ratio: 3.2; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) continues to benefit from its focus on analog chips, which convert inputs like touch, sound and pressure into electronic signals....
STANLEY BLACK & DECKER INC. $77 (New York symbol SWK; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 161.9 million; Market cap: $12.5 billion; Priceto- sales ratio: 1.2; Dividend yield: 2.5%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) earned $163.1 million in the first quarter of 2013, down 1.3% from $165.2 million a year earlier.
Due to fewer shares outstanding, earnings per share rose 5.1% to $1.03....
Due to fewer shares outstanding, earnings per share rose 5.1% to $1.03....
NCR CORP. $33 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 164.4 million; Market cap: $5.4 billion; Price-to-sales ratio: 0.9; No dividends paid; TSINetwork Rating: Average; www.ncr.com) is a leading maker of automated teller machines (ATMs), checkout scanners, cash registers and self-serve kiosks.
In February 2013, the company paid $791 million for Israel-based Retalix, whose software helps retailers manage their sales and track inventories....
In February 2013, the company paid $791 million for Israel-based Retalix, whose software helps retailers manage their sales and track inventories....