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
SHAWCOR LTD. $12 is a buy, but only for highly aggressive investors. The company (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.5 million; Market cap: $846.0 million; Price-to-sales ratio: 0.7; Dividend suspended in March 2020; TSINetwork Rating: Average; www.shawcor.com) is conducting a strategic review of its businesses that serve the oil and gas industry—Pipeline Performance Group, Shaw Pipeline Services, and Oilfield Asset Management....
THOMSON REUTERS CORP. $175 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 479.4 million; Market cap: $83.9 billion; Price-to-sales ratio: 9.6; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information (mainly through electronic channels) to professionals in the legal, and tax and accounting fields....
LOBLAW COMPANIES, $125.91, is a buy. The retailer (Toronto symbol L; Shares o/s: 322.4 million; Market cap: $40.6 billion; TSINetwork Rating: Above Average; Divd. yield: 1.3%; www.loblaw.ca), purchased the Shoppers Drug Mart chain in March 2014 for $12.3 billion in cash and shares....
SHERWIN-WILLIAMS CO. $215 (www.sherwin-williams.com) remains a hold. The company is a leading maker of paints and varnishes. Due to rising interest rates, which will slow sales of existing homes, and rising labour costs, the company expects its earnings will decline from $8.73 a share in 2022 to between $7.95 and $8.65 a share in 2023....
Becton Dickinson’s shares are down 6% in the past year, mainly due to falling demand for its COVID-19 testing kits as the pandemic eases. However, the company continues to launch new products, which should fuel its growth for many years to come.
BECTON DICKINSON & CO....
BECTON DICKINSON & CO....
TEXAS INSTRUMENTS INC. $181 is a buy. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 906.2 million; Market cap: $164.0 billion; Price-to-sales ratio: 8.3; Dividend yield: 2.7%; TSINetwork Rating: Average; www.ti.com) makes analog chips, which convert inputs like touch and sound into electronic signals that computers can understand.
In the fourth quarter of 2022, revenue fell 3.4%, to $4.67 billion from $4.83 billion a year earlier....
In the fourth quarter of 2022, revenue fell 3.4%, to $4.67 billion from $4.83 billion a year earlier....
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....