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
The pandemic presented this firm with unique challenges. However, it remained profitable and is now well positioned to keep prospering as the economy rebounds. Trends underway—as well as its strong position in key markets—will power its gains. The stock is a Power Buy.
STERIS PLC, $227.27, is a buy. The firm (New York symbol STE; TSINetwork Rating: Extra Risk) (www.steris.com; Shares outstanding: 98.8 million; Market cap: $22.7 billion; Dividend yield: 0.9%) sells sterilization equipment, surgical tables, and other products and services used in hospitals and laboratories.
Steris operates in four segments: Healthcare (65% of revenues), Applied Sterilization Technologies (17%), Life Sciences (11%), and Dental (7%)....
Goodyear’s shares took a big jump in mid-May 2023 after activist investor Elliott Management pushed for changes at the underperforming tiremaker. As well, Elliott, which owns about 10% of Goodyear, was pushing for a sale or other action on the company’s 1,000 plus retail stores....
ADT INC., $6.43, is a buy. The company (New York symbol ADT; TSINetwork Rating: Extra Risk) (adt.com; Shares outstanding: 866.5 million; Market cap: $5.9 billion; Dividend yield: 2.2%) is a leading provider of monitored security products and services to customers in the U.S.
ADT is now selling its commercial security, fire and life safety business unit to private equity firm GTCR for $1.6 billion.
Proceeds from the sale, which is expected to close in the fourth quarter of 2023, will be used to cut debt by $1.5 billion; the cash interest savings should offset the impact of losing the commercial business revenue....
ADT is now selling its commercial security, fire and life safety business unit to private equity firm GTCR for $1.6 billion.
Proceeds from the sale, which is expected to close in the fourth quarter of 2023, will be used to cut debt by $1.5 billion; the cash interest savings should offset the impact of losing the commercial business revenue....
Twilio focuses on a rapidly expanding area: it provides the building blocks that businesses and their software developers need to integrate voice calling, text messaging, video, web, mobile chat and, more recently, email.
The company’s array of communications offerings continues to see increased demand....
The company’s array of communications offerings continues to see increased demand....
Starting 2018, Thomson Reuters has worked to wind down its financial information business and use the proceeds to reward investors. Thanks to that strategy, its stock has soared 200% in the past five years. We feel Thomson can still go higher as it shifts its focus to niche areas where it has a competitive advantage like legal databases.
THOMSON REUTERS CORP....
MAPLE LEAF FOODS INC. $30 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 122.1 million; Market cap: $3.7 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.8%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels....
METRO INC., $70.10, is a buy. The company (Toronto symbol MRU; Shares o/s: 232.8 million; Market cap: $16.4 billion; TSINetwork Rating: Average; Dividend yield: 1.7%; www.metro.ca) has yet to reach a new contract with the union representing 3,700 workers at its 27 supermarkets in the Greater Toronto Area....
YUM CHINA HOLDINGS INC. $60 (www.yumchina.com) is a buy. The company is China’s largest fast-food operator with over 13,000 outlets in 1,800 cities, mainly under the KFC and Pizza Hut banners....
SHERWIN-WILLIAMS CO. $281 is a hold. The maker of paints for consumers and industrial users (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 258.0 million; Market cap: $72.5 billion; Price-to-sales ratio: 3.2; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.sherwin-williams.com) reported 6.3% higher sales in the second quarter of 2023, rising to $6.24 billion from $5.87 billion a year earlier....
MCKESSON CORP. $404 is a buy. The company (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 136.9 million; Market cap: $55.3 billion; Price-to-sales ratio: 0.2; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S....