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
DUN & BRADSTREET CORP. $82 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 40.9 million; Market cap: $3.4 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.dnb.com) began operating in 1841 and is now the world’s largest provider of credit reports on individual companies....
UNITED TECHNOLOGIES CORP. $93 (www.utc.com) could see its sales of jet engines and other aircraft equipment suffer due to budget cuts at the U.S. Department of Defense. Even so, it still expects to earn $5.85 to $6.15 a share in 2013; the stock trades at an attractive 15.5 times the midpoint of that range....
WESTJET AIRLINES, $23.45, symbol WJA on Toronto, is now in the process of upgrading its interline agreement with Air France to a full code-sharing arrangement. This will be WestJet’s ninth code-sharing deal. Under their current agreement, WestJet and Air France co-operate on flights and baggage handling. WestJet has interline agreements with 21 other airlines around the world. Through code-sharing deals, airlines sell seats on one another’s planes using the same two-letter code. In this case, the AF code will be used when travellers on Air France flights to Toronto connect to Vancouver, Edmonton, Saskatoon, Regina, Thunder Bay, Ottawa, Quebec City, St. John’s, Moncton and Halifax. The AF code will also apply to Air France passengers taking WestJet flights to Winnipeg and Calgary from Toronto and Montreal....
YUM! BRANDS INC., $70.20, New York symbol YUM, rose 4% this week after the company reported better-than-expected sales at its China division, which includes 4,260 KFC fried chicken and 987 Pizza Hut restaurants. China supplies around 40% of Yum’s overall earnings. In late 2012, Yum’s sales in the country suffered due to allegations that its KFC outlets bought raw chicken with higher-than-permitted levels of antibiotics from two suppliers. Following an investigation, Chinese regulators did not charge Yum with violating food-safety standards. Even so, Yum has strengthened its food-safety policies. It has also spent more on advertising and other promotions. These moves seem to be working. For the two months ended February 28, 2013, Yum’s same-store sales in China fell 20%, which was better than the company’s earlier prediction of a 25% drop....
SYMANTEC CORP. $24.54 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 689.2 million; Market cap: $16.9 billion; No dividends paid) sells computersecurity technology, including anti-virus and email-filtering software, to businesses and consumers....
DOMINO’S PIZZA $49.82 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 56.4 million; Market cap: $2.8 billion; Dividend yield: 1.6%) continues to expand internationally.

It just opened its first store in Thailand, in the city of Bangkok, and plans to add more outlets in the country in the next few years.

Domino’s now operates in over 70 markets worldwide....
DEVON ENERGY CORP. $55.69 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235- 3611; www.dvn.com; Shares outstanding: 406.0 million; Market cap: $22.7 billion; Dividend yield: 1.6%) is one of the largest U.S.-based oil and natural gas explorers and producers....
TRILOGY ENERGY CORP. $30.03 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290-2900; www.trilogy.com; Shares outstanding: 116.7 million; Market cap: $3.5 billion; Dividend yield: 1.4%) is up over 18% since it reported improved production and cash flow.

In the three months ended December 31, 2012, Trilogy produced an average of 35,014 barrels of oil equivalent per day (including natural gas)....
FAIR ISAAC CORP. $45.42 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 35.5 million; Market cap: $1.6 billion; Dividend yield: 0.2%) makes FICO Scores, the computer program that dominates the market for software that businesses use to evaluate customer creditworthiness....
ACI WORLDWIDE $47 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402- 334-5101; www.tsainc.com; Shares outstanding: 39.4 million; Market cap: $1.9 billion; No dividends paid) reported 66.0% higher revenue in the three months ended December 31, 2012, to $224.1 million from $135.0 million a year earlier....