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
INTACT FINANCIAL CORP., $63.55, symbol IFC on Toronto, is Canada’s largest provider of property and casualty insurance, based on premiums. Its brands include Intact Insurance, Canada BrokerLink, belairdirect and Grey Power. In the three months ended December 31, 2012, Intact’s revenue rose 7.2%, to $1.69 billion from $1.58 billion a year earlier. Part of the gain came from Jevco Insurance, which Intact bought from the Westaim Corporation (symbol WED on Toronto) for $530 million in early 2012. Jevco sells insurance to high-risk drivers, as well as owners of motorcycles, snowmobiles, recreational vehicles and tow trucks. It operates in Ontario, Quebec and Alberta....
TUPPERWARE BRANDS CORP., $76.77, New York symbol TUP, rose 10% this week after it reported better-than-expected earnings. It also raised its dividend and announced that it would buy back more of its shares. The company makes household products, including educational toys and plastic food and beverage containers. It also manufactures a wide range of cosmetics, bath oils and fragrances. In 2012, Tupperware’s earnings rose 3.0%, to $281.4 million from $273.3 million in 2011. Due to fewer shares outstanding, earnings per share rose at a much faster pace of 12.1%, to $4.99 from $4.45. That beat the consensus estimate of $4.96....
CHESAPEAKE ENERGY CORP., $20.33, symbol CHK on New York, is up 7.0% from $19 this week. That’s largely because the company’s controversial co-founder, CEO and chairman, Aubrey K. McClendon, has agreed to retire on April 1, 2013. McClendon is under investigation by the U.S. Securities and Exchange Commission (SEC) for taking out $1.1 billion of loans from EIG Global Energy Partners that may have put him in a conflict of interest. EIG is a big lender to Chesapeake, and that’s where the potential conflict arises. It has also come to light that McClendon ran a $200-million hedge fund between 2004 and 2008 that traded in the same commodities that Chesapeake produces....
BELLATRIX EXPLORATION, $4.97, symbol BXE on Toronto, is up over 21% this week after it announced a joint venture agreement with an unnamed South Korea-based investment fund. This deal should speed up development of Bellatrix’s undeveloped Cardium shale oil deposits in west-central Alberta. The South Korean partner will pay $150 million for 33% of production from a planned 83-well drilling program. In addition, Bellatrix will now spend a total of $230 million to $240 million on exploration and development this year, up from its earlier forecast of $180 million. The company expects its daily production to average 24,000 to 25,000 barrels of oil equivalent (including natural gas) per day this year. It could also end 2013 with production as high as 30,000 to 31,000 barrels per day. To put that in perspective, Bellatrix likely ended 2012 with average production of 19,000 to 19,500 barrels a day....
CONAGRA FOODS INC., $32.33, New York symbol CAG, is our “Stock of the Year” for 2013. ConAgra began processing grain at just four mills in Nebraska in 1919. Over the decades, it grew into one of North America’s leading food companies. In the past few years, it has sold off its fresh food operations to focus solely on its more profitable packaged food businesses. The company recently announced a major acquisition that will give it a larger share of the fast-growing private label food business. While private label foods now account for 18% of packaged food sales in the U.S., most of them just aren’t that good. That provides an opportunity for ConAgra, since it has the expertise to make branded stuff, and it can apply it to private labels....
We’ve chosen ConAgra as our “Stock of the Year”for 2013.
ConAgra began processing grain at just four mills in Nebraska in 1919. Over the decades, it grew into one of North America’s leading food companies. In the past few years, it has sold off its fresh food operations to focus solely on its more profitable packaged food businesses.
The company recently announced a major acquisition that will give it a larger share of the fast-growing private label food business....
ConAgra began processing grain at just four mills in Nebraska in 1919. Over the decades, it grew into one of North America’s leading food companies. In the past few years, it has sold off its fresh food operations to focus solely on its more profitable packaged food businesses.
The company recently announced a major acquisition that will give it a larger share of the fast-growing private label food business....
INTERNATIONAL BUSINESS MACHINES CORP. $205 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $225.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.ibm- .com) has gained 6.8% since we named it last year’s top pick at $192 in our February 2012 issue.
Demand for the company’s software is rising....
Demand for the company’s software is rising....
Online shopping continues to grow quickly, mainly because the Internet makes it easier for consumers to find the merchandise they’re looking for and compare prices. Online shopping is also becoming more popular in developing countries, where there are few shopping malls and stores.
The best way to profit from this trend is through companies that process online payments....
The best way to profit from this trend is through companies that process online payments....
INTEL CORP. $21 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $105.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.intel.com) earned $11.6 billion in 2012, down 14.4% from $13.5 billion in 2011....
WELLS FARGO & CO. $35 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 5.3 billion; Market cap: $185.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.5%; TSINetwork Rating: Average; www.wellsfargo.com) earned a record $18.9 billion, or $3.36 a share, in 2012....