The adoption of a long time horizon is an essential mentality for investors. Short-term profits are often enticing for those new to the market, as stories of exponential gains and wild success are rife in the news. Traders are a different story, but for the average investor, a buy-and-hold strategy is the best way to maximize gains and avoid crippling losses in the long term. That being said, that does not mean investors should resign themselves to avoiding the potential for big capital gains.
Let’s take a look at three growth stocks that are suitable for a buy-and-hold, growth-focused portfolio.
ATS Automation Tooling Systems Inc.
ATS Automation Tooling Systems Inc. (TSX:ATA) is an Ontario-based company which focuses on designing and building factory automation solutions. The rapid growth of automation is often cited for the transformative impact it will have on economies in the 21st century, with the potential to revolutionize not just the industries themselves, but the entire global workforce. It is an industry with the potential for explosive and consistent long-term growth.
ATS Automation released its first quarter fiscal 2018 results on August 17. The company saw year-over-year growth in order bookings but a 1% decline in revenues to $264 million. First-quarter order bookings were $266 million, representing an 11% increase from the same period the previous year. The stock has gained 1.6% in 2017 and 22% year over year. Though income and revenue disappointed, the increase in order bookings shows that raw sales are keeping pace with expectations.
Fairfax India Holdings Corp.
Fairfax India Holdings Corp. (TSX: FIH.U) is an investment holding company with an objective to invest in public and private equity securities and debt instruments in India and Indian businesses. India is one of the largest and fastest-growing economies in the world, and it has been projected to pass the U.S. as an economic power by 2040. Fairfax India Holdings released its second-quarter results on August 3. It reported net earnings of $268.8 million compared to $38.3 million in Q2 2016. Book value per share increased 37.4% from December 31, 2016.
The stock has catapulted 50% in 2017 and 62% year over year. Investors looking to get a stake in the growth and modernization of India should add this stock to their portfolios.
Hudbay Minerals Inc.
Hudbay Minerals Inc. (TSX: HBM)(NYSE: HBM) is a Canadian integrated mining company that operates development properties and exploration activities across the Americas. The company released its second-quarter results on August 3. Operating cash flow saw 54% growth to $124 million. Copper and zinc production increased 18% and 14%, respectively. The company reported net profit of $25.6 million, or $0.11 per share, compared to a net loss of $5.7 million or $0.02 per share loss in Q2 2016.
The stock has seen growth of 55% in 2017 and 87.5% year over year. Copper prices recently hit a three-year high, and the rally shows little signs of slowing down. This stock has the greatest exposure to possible overheating in the copper market, and probably warrants the greatest degree of caution of those mentioned in this article.
