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.
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DRAFTKINGS INC., $42.64, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (draftkings.com; Shares o/s: 841.7 million; Market cap: $21.2 billion; No dividend) provides sports betting in several U.S. states: Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Maine, Maryland, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Tennessee, Virginia, Vermont, North Carolina, West Virginia, Wyoming, Ohio, Washington D.C. and Massachusetts. As well, it offers its online sportsbook and online casino products in Ontario.
ABBVIE INC., $220.81, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $390.1 billion; Dividend yield: 3.0%) will acquire the treatment, called Bretisilocin, for up to $1.2 billion. Bretisilocin is currently in clinical development for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
CELSIUS HOLDINGS INC., $56.34, (Nasdaq symbol CELH; TSINetwork Rating: Extra Risk) (www.celsius.com; Shares outstanding: 257.8 million; Market cap: $14.5 billion; No dividends paid) makes Celsius, a growing lifestyle energy drink brand.