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
More Americans own pets than ever before, and the trend looks set to keep rising. That should continue to increase these two companies’ earnings. However, PetSmart is the better choice right now.
PETSMART INC. $67 (Nasdaq symbol PETM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 102.7 million; Market cap: $6.9 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.petm.com) operates 1,269 pet stores in the U.S....
PETSMART INC. $67 (Nasdaq symbol PETM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 102.7 million; Market cap: $6.9 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.petm.com) operates 1,269 pet stores in the U.S....
YUM! BRANDS INC. $69 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 450.7 million; Market cap: $31.1 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.yum.com) earned $0.70 a share in the first quarter of 2013, down 7.9% from $0.76 a year earlier....
FAIR ISAAC CORP. $44 (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.5 million; Market cap: $1.6 billion; Price-to-sales ratio: 2.2; Dividend yield: 0.2%; TSINetwork Rating: Average; www.fico.com) makes FICO Scores, a computer program that helps businesses make better decisions about customer creditworthiness....
J.P. MORGAN CHASE & CO. $49 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.8 billion; Market cap: $186.2 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.1%; TSINetwork Rating: Average; www.jpmorganchase.com) earned a record $6.5 billion in the three months ended March 31, 2013....
MCKESSON CORP. $107 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 232.9 million; Market cap: $24.9 billion; Price-to-sales ratio: 0.2; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www. mckesson.com) is the largest wholesale drug distributor in the U.S....
MICROSOFT CORP. $32 (www.microsoft.com) earned $0.65 a share in the three months ended March 31, 2013, up 8.3% from $0.60 a year earlier. Revenue rose 17.7%, to $20.5 billion from $17.4 billion. Slow personal computer sales have hurt revenue from its Windows operating system....
INTERNATIONAL BUSINESS MACHINES CORP., $190.00, New York symbol IBM, reported lower-than-expected earnings and revenue for the latest quarter. That’s why the stock fell 8% on Friday. In the three months ended March 31, 2013, the company earned $3.03 billion. That’s down 1.1% from $3.07 billion a year earlier. IBM spent $2.6 billion on share buybacks in the latest quarter. Due to fewer shares outstanding, earnings per share rose 3.4%, to $2.70 from $2.61. Without unusual items, such as costs to integrate recently purchased companies, IBM’s earnings per share would have risen 7.9%, to $3.00 from $2.78. The gain was mainly the result of the company’s ongoing efforts to cut costs and improve productivity. Still, the latest earnings missed the consensus estimate of $3.05 a share....
YAMANA GOLD INC., $11.81, symbol YRI on Toronto, owns seven operating gold mines in Brazil, Chile, Mexico and Argentina. It also holds a 12.5% stake in the Alumbrera copper/gold project in Argentina and has three other properties in advanced stages of development. The stock fell 11% this week in response to concerns that Cyprus may sell some of its gold reserves as it deals with its financial crisis. Investors, who typically buy gold as a hedge against inflation, are also worried that the U.S. Federal Reserve may scale back its quantitative easing policy, which would slow inflation. As a result, gold prices fell from around $1,500 U.S. an ounce to today’s price of $1,401. We feel Yamama’s high-quality mines give it an edge over other junior gold companies. It also plans to increase its production by at least 20% in 2013. Moreover, Yamana’s strong balance sheet is a plus: its debt of $765.9 million (as of December 31, 2012) is a low 8.6% of its $8.9-billion market cap. The company also held cash of $349.6 million, or $0.46 a share....
BELLATRIX EXPLORATION $5.93 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration- .com; Shares outstanding: 107.9 million; Market cap: $639.8 million; No dividends paid) produces natural gas (70% of output) and oil (30%) in Alberta, B.C....
The price of natural gas has doubled in the past year. However, natural gas stocks have largely ignored that rise and either remained depressed or lagged behind gas prices.
Maybe that’s because investors take it for granted that winters will remain warm, thanks to global warming....
Maybe that’s because investors take it for granted that winters will remain warm, thanks to global warming....