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.
Read More
Close
Growth Stocks Library Archives
TOROMONT INDUSTRIES LTD. $18.99 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667-5511; www.toromont.com; Shares outstanding: 76.4 million; Market cap: $1.5 billion; Dividend yield: n/a) has completed its spinoff of ENERFLEX LTD., $13.49 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares outstanding: 76.4 million; Market cap: $1.0 billion; Dividend yield: n/a). Toromont shareholders received shares of the new Toromont and shares of Enerflex. Shareholders will not have to pay capital-gains taxes until they sell their shares. (When they do, they will allocate 56.4% of their adjusted cost base to Toromont and 43.6% to Enerflex). Enerflex sells and installs compression systems for natural gas, coal-bed methane, fuel gas and carbon dioxide in Canada and around the world....
SYMANTEC CORP. $18.59 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (408-517-8000; www.symantec.com; Shares outstanding: 789.3 million; Market cap: $14.5 billion; No dividends paid) sells Internet security technology, including anti-virus and email filtering software. It also sells software and services for backing up and archiving data. Demand for data-security products is rising, particularly as more businesses switch to cloud computing. That’s where data and software are kept on remote servers. Users access these servers over the Internet. To meet this demand, Symantec plans to spend as much as $1.25 billion to buy other software firms this year, especially those that add to its cloud computing expertise....
DOMINO’S PIZZA $23.67 (New York symbol DPZ; TSINetwork Rating: Average)(734-930-3030; www.dominos.com; Shares outstanding: 60.8 million; Market cap: $1.4 billion; No dividends paid) is the world’s largest chain of pizza stores that offer takeout and delivery. The company operates 9,379 stores in the U.S. and over 70 other countries. Franchisees run most of these outlets. Excluding one-time items, Domino’s earnings per share jumped 20% in the three months ended March 27, 2011, to $0.42 from $0.35. The company paid more for food ingredients, but that was offset by lower costs for labour, rent and interest. Sales rose 2.1%, to $389.2 million from $381.1 million. U.S. same-store sales fell 1.4%. However, international same-store sales gained 8.3%....
SYMANTEC CORP., $18.50, Nasdaq symbol SYMC, sells Internet security technology, including anti-virus email filtering software. The company plans to spend between $750 million and $1.25 billion on acquisitions in its current fiscal year, which ends March 31, 2012. That’s equal to roughly 9% of its $14.3-billion market cap. Symantec is particularly interested in companies that expand its expertise in “cloud computing.” That’s where data and software are kept on remote servers. Users access these servers over the Internet....
DELPHI ENERGY, $2.56, symbol DEE on Toronto, explores for oil and gas in Alberta and B.C. Natural gas makes up 74% of its daily output; the remaining 26% is oil. In the three months ended March 31, 2011, Delphi’s production rose 8.0%, to an average of 8,259 barrels of oil equivalent (including natural gas) per day from 7,647 barrels a year earlier. Delphi’s cash flow rose 2.0% in the quarter, to $15.1 million from $14.8 million. Higher production and oil prices were the main reason for the gain. The company’s operating costs also fell. Delphi sold 3.2 million shares to raise $9.0 million in the quarter. Due to more shares outstanding, cash flow per share fell 13.3%, to $0.13 a share from $0.15....
APPLE INC., $343.44, Nasdaq symbol AAPL, rose 3% this week after the company said it will soon launch a new online service called iCloud. This service will let users store their music, videos and other files in an “online locker” that they can access over the Internet using Apple devices, including iPod music players, iPhone smartphones, iPad tablet computers, and Mac desktop and laptop computers. Apple will probably charge a fee for iCloud, even though other companies offer similar online storage services for free. However, the company has a loyal customer base, and users will be able to transfer music and movies they buy from Apple’s iTunes online store to the iCloud. These strengths should help the company attract enough customers to make this service profitable....
CAMECO CORP., $27.56, symbol CCO on Toronto, dropped to as low as $26.61 this week after the German government announced that it plans to shut down all of its nuclear reactors by 2022. The stock has since recovered most of the loss. Germany’s decision is the result of anti-nuclear sentiment in the wake of the Japanese earthquake and tsunami, which damaged the Fukushima nuclear plant and allowed radiation to escape. As well, German Chancellor Angela Merkel’s centre-right Christian Democrats lost seats to the Green Party in recent state elections. Right now, nuclear reactors supply about a quarter of Germany’s electricity. It’s doubtful that Merkel can replace that production with wind and solar. The country is more likely to import more electricity from France, which relies on nuclear power for about 80% of its electricity generation....
SONY CORP. ADRs, $26.85, New York symbol SNE, reported higher losses for its latest fiscal year, mainly due to one-time charges related to the March 2011 earthquake and tsunami in Japan. In its 2011 fiscal year, which ended March 31, 2011, Sony lost $3.1 billion, or $3.12 per ADR (each American Depositary Receipt represents one common share). In fiscal 2010, it lost $439 million, or $0.44 per ADR. Revenue rose 11.5%, to $86.5 billion from $77.6 billion. The earthquake disrupted the operations of some of Sony’s suppliers in Japan. That continues to cause parts shortages at Sony’s Japanese plants. Even so, the company expects to sell 27 million TV sets in the current fiscal year, up 20.5% from 22.4 million in fiscal 2011. However, the TV division will probably keep losing money....
AEROPOSTALE INC., $19.08, symbol ARO on New York, is a mall-based retailer of casual clothing and accessories. The company has 974 Aeropostale stores in the U.S., Canada and Puerto Rico. It mainly sells its clothing to 14-to-17-year-olds. Aeropostale’s 57 “P.S. from Aeropostale” stores in the U.S. are aimed at seven-to-12-year-old elementary-school children. In the three months ended April 30, 2011, Aeropostale’s sales rose 1.2% to $469.2 million from $463.6 million. Same-store sales declined 7%, compared with an increase of 8% a year earlier. Sales from the company’s e-commerce business jumped 18.5%, to $28.2 million from $23.8 million. Despite the higher sales, Aeropostale’s earnings dropped 63.9%, to $16.4 million from $45.4 million a year earlier. During the quarter, the company bought back 4.2 million of its shares for $100.1 million. Due to fewer shares outstanding, earnings per share fell 58.3%, to $0.20 from $0.48....
In an effort to dampen speculation, the CME Group, which owns the NYMEX futures exchange, recently raised the minimum amount of money traders must invest when buying crude-oil futures contracts. Even so, we feel oil prices will remain volatile in light of ongoing political unrest in the Middle East.
To lower your risk, we continue to advise that you stick with well-established oil producers like Chevron....
To lower your risk, we continue to advise that you stick with well-established oil producers like Chevron....