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:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. 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
THE BOEING CO. $85 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 756.2 million; Market cap: $64.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.boeing.com) had to ground all of its new 787 Dreamliner passenger planes in January 2013 after a battery problem forced one to make an emergency landing in Japan.

The 787 uses advanced rechargeable lithium-ion batteries to power its electrical systems....
An American Depositary Receipt (ADR) is an investment unit for foreign companies that trade on U.S. stock markets. One ADR typically represents one or more shares of the overseas firm.

ADRs make its easier to invest in foreign companies, such as the three we analyze below, without the complications of buying or selling on foreign exchanges or in foreign currencies....
APPLE INC. $451 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 939.1 million; Market cap: $423.5 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.4%; TSINetwork Rating: Average; www.apple.com) is down 36% from its all-time high of $705.07 in September 2012.

Thanks to the huge success of the iPhone and iPad, as well as the star power of the late Steve Jobs, Apple’s co-founder and CEO, the company became a media and broker favourite....
STANLEY BLACK & DECKER INC. $82 (New York symbol SWK; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 160.3 million; Market cap: $13.1 billion; Priceto- sales ratio: 1.3; Dividend yield: 2.4%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) has completed its purchase of Infastech, a Hong Kong-based fastener maker that serves the automotive, electronic, construction and aerospace markets....
These two companies own some of the top brands in the fashion industry. However, recent payroll tax hikes have lowered most Americans’ take-home pay. That could hurt clothing sales.

LIMITED BRANDS INC. $44 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 288.4 million; Market cap: $12.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Average; www.- limitedbrands.com) owns the Victoria’s Secret lingerie chain and the Bath & Body Works personalcare products stores.

Limited is restructuring the La Senza lingerie chain in Canada, including closing a third of its stores (it now has 158 outlets) and shifting its focus to younger shoppers.

In its 2013 fiscal year, which ended February 2, 2013, Limited’s sales rose just 0.9%, to $10.5 billion from $10.4 billion in 2012....
NORDSTROM INC. $53 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 195.9 million; Market cap: $10.4 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.3%; TSINetwork Rating: Average; www.nordstrom.com) plans to invest $240 million to expand its online operations, which supply about 10% of its sales....
These two leading mining companies reported lower earnings for 2012. But they’re both working on important projects that should boost their earnings in 2013 and beyond.

NEWMONT MINING CORP. $40 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.7 million; Market cap: $19.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.3%; TSINetwork Rating: Average; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru....
ARCHER DANIELS MIDLAND CO. $33 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 658.6 million; Market cap: $21.7 billion; Priceto- sales ratio: 0.2; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.adm.com) has moved up nearly 20% in the past three months....
AMERICAN EXPRESS CO. $66 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $72.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.4%; TSINetwork Rating: Average; www.- americanexpress.com) has passed the Federal Reserve’s latest “stress test,” which measures how well banks and other financial firms would cope with a sharp jump in unemployment, falling stock prices and other unfavourable economic conditions.

As a result, the company raised its quarterly dividend by 15.0%, to $0.23 a share from $0.20....
MCCORMICK & CO. INC. $72 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 132.7 million; Market cap: $9.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Average; www.mccormick.com) earned $407.8 million, or $3.04 a share, in its 2012 fiscal year, which ended November 30, 2012....