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
Tornadoes and other severe storms recently brought down power lines and caused other damage for these two Midwestern power companies. The extra repair costs will weigh on their earnings. However, regulators typically let utilities recoup these unusual costs through higher power rates....
ARCHER DANIELS MIDLAND CO. $34 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 658.8 million; Market cap: $22.4 billion; Priceto- sales ratio: 0.2; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.adm.com) is looking to sell its cocoa business, which sells cocoa powder, cocoa butter and related ingredients to chocolate and confectionery makers....
HONDA MOTOR CO. LTD. ADRs $36 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $64.8 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.honda.com) sold 255,540 cars in China in the first five months of 2013....
PFIZER INC. $28 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.1 billion; Market cap: $198.8 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pfizer.com) has completed its plan to hand out shares in its 80.2%-owned animalhealth subsidiary to its own shareholders....
VISA INC. $183 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 792.0 million; Market cap: $144.9 billion; Price-to-sales ratio: 10.9; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic payments network....
DIAGEO PLC ADRs $115 (www.diageo.com) is the world’s largest premium alcoholic beverage company. Its major brands include Guinness stout, Smirnoff vodka, Johnnie Walker scotch whisky, Captain Morgan rum and Bailey’s Irish Cream. In the three months ended March 31, 2013, its sales rose 7% from a year earlier, mainly due to acquisitions and favourable exchange rates....
ALARMFORCE INDUSTRIES, $10.41, symbol AF on Toronto, reports that its sales rose 9.1% in the three months ended April 30, 2013, to $11.9 million from $10.9 million a year earlier. The company earned $1.3 million, or $0.11 a share, compared to a loss of $238,021, or $0.02 a share. AlarmForce’s revenue rose along with its subscriber base: the company ended the quarter with 31,200 U.S. customers, up 22.8% from 25,400 a year ago. In Canada, it now has 106,500 subscribers, up 1.8%. The company’s earnings rose because it spent a lot less on marketing than in the year-earlier quarter, when it increased its advertising spending as it launched its VideoRelay system. This service lets subscribers watch their homes through computers and smartphones....
ADOBE SYSTEMS INC., $44.77, Nasdaq symbol ADBE, reported better-than-expected earnings this week. In its fiscal 2013 second quarter, which ended May 31, 2013, Adobe’s earnings fell 39.0%, to $182.9 million, or $0.36 a share. A year earlier, it earned $299.6 million, or $0.60 a share. These figures exclude several unusual items, such as restructuring charges and gains on investment sales. On that basis, the latest earnings beat the consensus estimate of $0.34 a share. Revenue fell 10.1%, to $1.01 billion from $1.12 billion. That matched the consensus estimate....
DUNDEE REIT $33.17 (Toronto symbol D.UN; TSINetwork Rating: Extra Risk) (416-365-3535; www.dundeereit.com; Units outstanding: 104.4 million; Market cap: $3.7 billion; Dividend yield: 6.8%) owns and manages 24.1 million square feet of office and retail space across Canada.
As the Canadian economy improves, the trend in interest rates is likely to be upward....
As the Canadian economy improves, the trend in interest rates is likely to be upward....
Gold is down 28% from $1,800 U.S. an ounce in September 2012 to $1,296 today. That’s hurting the prices of most gold stocks—but it’s also letting cashrich gold firms pick up some great assets at bargain prices.
NEW GOLD $6.63 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 476.9 million; Market cap: $3.2 billion; No dividends paid) has just agreed to buy Rainy River Resources (Toronto symbol RR) in a friendly takeover for $381.9 million.
Rainy River’s project in northwestern Ontario could hold as much as 4.0 million ounces of gold....
NEW GOLD $6.63 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 476.9 million; Market cap: $3.2 billion; No dividends paid) has just agreed to buy Rainy River Resources (Toronto symbol RR) in a friendly takeover for $381.9 million.
Rainy River’s project in northwestern Ontario could hold as much as 4.0 million ounces of gold....