NBLY:CC - 3 Long-Term Canadian Growth Stocks Perfect for Your TFSA
2023-08-15 14:30:00 ET
When it comes to investing, being able to keep your gains tax free is a massive advantage, which is why the TFSA is one of the most important tools that Canadian investors have. And while you’ll want to diversify and buy several different stocks in your TFSA, some of the best Canadian stocks to own are long-term growth stocks.
Because you don’t have to pay any taxes on the income you make in your TFSA, choosing your stocks wisely is essential. You want some of the highest growth stocks possible in order to make as much tax-free income as you can.
At the same time, though, you don’t want to buy risky stocks that can both lose you money and erode the valuable contribution room you have in your TFSA.
Therefore, it’s essential to buy some of the highest quality stocks in Canada, particularly long-term growth stocks that can increase the value of your investment for years or even decades to come.
So if you’re looking for stocks to buy for your TFSA today, here are three Canadian growth stocks with impressive potential to buy and hold long-term.
A top Canadian stock growing rapidly by acquisition
If you’re looking to add stocks to your TFSA that you can hold for the long haul, one of the best Canadian growth stocks to consider is Neighbourly Pharmacy ( TSX:NBLY ).
Neighbourly is attractive because it’s a healthcare stock that has defensive qualities but is also growing rapidly by acquisition and expanding its footprint across the country. In fact, the company boasts a broad national presence with just shy of 300 community pharmacies across Canada.
As Neighbourly continues to expand its operations and acquire more pharmacies, it hopes to continue to grow organically as well and scale its costs to improve profitability.
Therefore, while the stock trades so cheaply, it’s one of the best investments you can make today. Right now, Neighbourly trades at just over $17 a share, yet its average analyst target price is $23.50, a nearly 30% premium to today’s trading price.
One of the best growth stocks in Canada over the last decade
Another high-quality Canadian growth stock and one of the most impressive businesses in Canada over the last decade is Alimentation Couche-Tard ( TSX:ATD ).
Couche-Tard is an appealing stock that, like Neighbourly, has also grown significantly by acquisition. However, in recent years Couche-Tard has also focused on improving its organic growth and brand loyalty at its convenience stores and gas stations.
All in all, Couche-Tard’s strategy has led to a remarkable total return over the last decade, growing investors’ capital by more than 635%.
Yet even with its constant and impressive growth, the stock still trades at a reasonable valuation with a current forward price-to-earnings ratio of just 17.9 times thanks to the consistent growth in its EPS each year.
And in the past, while recessions and economic downturns can temporarily impact Couche-Tard’s business, the company has also used these types of opportunities to make value-accretive acquisitions and improve its long-term growth potential.
Therefore, if you’re looking to add stocks to your TFSA today, Couche-Tard is certainly one of the best growth stocks that Canadian investors can consider.
An impressive defensive growth stock that’s a perfect investment for 2023
Lastly, while the current market offers several undervalued investment opportunities, Jamieson Wellness ( TSX:JWEL ) is certainly one of the best stocks Canadian investors can buy.
Because Jamieson is a health and wellness company that has defensive qualities, it’s an ideal stock for your TFSA due to its steady growth and consistent performance.
For years, it has seen strong organic growth and has even made acquisitions to help expand its footprint. And now today, the stock has significant growth potential both in the U.S. as well as in China, the two largest economies in the world.
In fact, in its recent quarterly earnings report, Jamieson’s revenue grew by 31.9%, exceeding expectations thanks in large part to its expanding operations in the U.S. and China.
Therefore, while the stock trades at the bottom end of its 52-week range, it’s easily one of the best Canadian stocks to buy for your TFSA.
The post 3 Long-Term Canadian Growth Stocks Perfect for Your TFSA appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy .
2023