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
RESTAURANT BRANDS INTERNATIONAL INC. $67 is a buy for aggressive investors. The fast-food operator’s (New York symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 453.0 million; Market cap: $30.4 billion; Price-to-sales ratio: 4.5; Dividend yield: 3.3%; TSINetwork Rating: Average; www.rbi.com) four restaurant banners in the U.S.—Burger King, Popeyes, Firehouse Subs and Tim Hortons—have renewed their relationship with Coca-Cola until 2033.
Under the new agreements, Coca-Cola will invest in and support marketing priorities with all four banners to drive additional traffic and contribute to franchisee profitability.
The company will probably earn $3.24 a share for all of 2023, and the stock trades at a reasonable 20.7 times that estimate....
The launch of new weight-loss drugs like Ozempic, which cause people to eat less, has hurt fast-foods stocks like Yum and Yum China. However, these drugs come with serious side effects, which limits their use. We feel these companies’ top brands will continue to attract customers, particularly in overseas markets.
YUM! BRANDS INC....
YUM! BRANDS INC....
BOEING CO. $178 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 603.2 million; Market cap: $107.4 billion; Price-to-sales ratio: 1.5; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) now expects to deliver between 375 and 400 of its 737 Max airliners in 2023, down from its previous estimate of 400 to 450....
The shares of these two food ingredient suppliers have dropped lately, mainly due to concerns that an economic slowdown would hurt their sales and make it harder to raise their selling prices. However, they play a vital role in global food production, which bodes well for their long-term prospects.
ARCHER DANIELS MIDLAND CO....
ARCHER DANIELS MIDLAND CO....
VISA INC. $237 is a buy. The company (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.1 billion; Market cap: $497.7 billion; Price-to-sales ratio: 15.5; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic-payments network....
Concerns over high interest rates and their impact on loan demand and writeoffs have hindered the shares of the big banks. That’s partly why we recommend investors diversify their holdings with non-bank companies that serve niche segments of the finance industry....
Pfizer recently cut its outlook for 2023 due to declining demand for its COVID-19 vaccines and treatments. However, the company is using the huge profits it earned on those products to buy other drugmakers with promising products.
We feel these moves, as well as Pfizer’s own highly successful research efforts, set it up for many more years of rising sales and earnings....
We feel these moves, as well as Pfizer’s own highly successful research efforts, set it up for many more years of rising sales and earnings....
Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
CHIPOTLE MEXICAN GRILL, $1,840.73, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 27.6 million; Market cap: $50.8 billion; No dividends paid) is now testing a new production line for burrito bowls and salads for digital orders.
Orders placed online ahead of time will be routed to the new system, which dispenses an empty plate positioned under a series of ingredient dispensers....
CHIPOTLE MEXICAN GRILL, $1,840.73, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 27.6 million; Market cap: $50.8 billion; No dividends paid) is now testing a new production line for burrito bowls and salads for digital orders.
Orders placed online ahead of time will be routed to the new system, which dispenses an empty plate positioned under a series of ingredient dispensers....
You should remain wary of stocks that attract broker/media praise for their high-profile products or services and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
CAVA GROUP, $33.78, (New York symbol CAVA; TSI Rating: Extra Risk) (www.cava.com; Shares o/s: 113.6 million; Market cap: $3.8 billion; No divds.) is a U.S....
CAVA GROUP, $33.78, (New York symbol CAVA; TSI Rating: Extra Risk) (www.cava.com; Shares o/s: 113.6 million; Market cap: $3.8 billion; No divds.) is a U.S....
Disney will make a huge investment in its most lucrative business. The parks, experiences and products segment accounts for a third of the company’s revenue; it contributes a whopping 80% of its operating profits.
WALT DISNEY CO., $84.68, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (Shares o/s: 1.8 billion; Market cap: $152.4 billion; No dividend) now plans to spend $60 billion over the next 10 years in a major expansion of its theme parks, products and cruise line business....