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
SONY GROUP CORP. ADRs $88 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $114.4 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.6%; TSINetwork Rating: Average; www.sony.com) reported 1.3% lower sales in its fiscal 2023 third quarter, ended December 31, 2022, to $26.02 billion from $26.36 billion a year earlier....
A great way to improve your international exposure is to buy high-quality firms that trade on the New York Stock Exchange as American Depositary Receipts (ADRs). Here are three of our favourites (including Sony—see box). Note, however, that we see only one of them as a buy right now.
ABB LTD....
ABB LTD....
HOWMET AEROSPACE INC. $42 is a hold. The company (New York symbol HWM; Manufacturing & Industry sector; Shares outstanding: 412.3 million; Market cap: $17.3 billion; Price-to-sales ratio: 2.9; Dividend yield: 0.4%; TSINetwork Rating: Average; www.howmet.com) makes a range of industrial parts, from jet engine components and fasteners to forged aluminum wheels.
Howmet’s revenue in the fourth quarter of 2022 rose 17.7%, to $1.51 billion from $1.29 billion a year earlier....
Howmet’s revenue in the fourth quarter of 2022 rose 17.7%, to $1.51 billion from $1.29 billion a year earlier....
VISA INC. $223 is a buy. The company (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.1 billion; Market cap: $468.3 billion; Price-to-sales ratio: 15.3; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic-payments network....
You should remain wary of stocks that attract broker/media praise for their high-profile products or services and their business models. Here’s an example of a stock to avoid:
ALLBIRDS INC., $1.06, (Nasdaq symbol BIRD; TSINetwork Rating: Extra Risk) (allbirds.com; Shares o/s: 97.2 million; Market cap: $166.5 million; No dividends paid) is a global “lifestyle” brand that aims to make more sustainable footwear and apparel products without the use of synthetic petroleum-based fibres like polyester.
The San Francisco-based company launched its IPO and began trading on Nasdaq at $15 a share on November 3, 2021....
ALLBIRDS INC., $1.06, (Nasdaq symbol BIRD; TSINetwork Rating: Extra Risk) (allbirds.com; Shares o/s: 97.2 million; Market cap: $166.5 million; No dividends paid) is a global “lifestyle” brand that aims to make more sustainable footwear and apparel products without the use of synthetic petroleum-based fibres like polyester.
The San Francisco-based company launched its IPO and began trading on Nasdaq at $15 a share on November 3, 2021....
MP MATERIALS CORP., $27.73, is a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares outstanding: 177.6 million; Market cap: $5.2 billion; No dividends paid) is the owner and operator of the Mountain Pass mine....
ADT keeps signing up new security customers at the same time it retains more and more of its existing ones. The company’s expanded services help drive that growth. Those products include Wi-Fi-enabled security cameras and automated home solutions. ADT’s outlook is even brighter because of its new smart-home partnership with Google parent Alphabet....
Chipotle continues to have success in its competitive fast-food market. And now, it’s looking ahead to new opportunities. That’s why it’s testing a new takeout and delivery concept. We think this just adds to the company’s already bright future. The stock is a buy.
CHIPOTLE MEXICAN GRILL, $1,590.87, is a buy. The stock (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 27.6 million; Market cap: $43.9 billion; No dividends paid.) is launching a new restaurant spinoff this month called Farmesa that features “California-inspired” bowls....
SHOPIFY, $59.92, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares o/s: 1.2 billion; Market cap: $76.5 billion; No dividends paid) reported 25.7% higher revenue in the three months ended December 31, 2022, rising to $1.74 billion from $1.38 billion a year earlier.
Even so, Shopify is now eliminating 1,000 jobs, or 10% of its global workforce....
Even so, Shopify is now eliminating 1,000 jobs, or 10% of its global workforce....
Corteva shares offer investors a number of pluses: Not only is the company at the forefront of key agricultural trends, the stock is a spinoff. Over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think Corteva has further gains ahead for investors....