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Written by Sneha Nahata at The Motley Fool Canada
Investing in stocks may not attract many investors in the current market scenario. However, holding cash in your TFSA will not benefit you. Instead, TFSA investors can use the current opportunity to buy cheaper high-quality growth stocks and stay invested in them to profit from price recovery.
Due to the recent sell-off, investors have a lot of options to place bets on. In addition, of all sectors, tech stocks have taken the biggest hit, with some top-quality names losing more than 80% of their value from the peak. Thus, now may be an opportune time to invest in technology stocks that can double your TFSA money in four to five years.
Let’s take a look at some tech stocks that could be comparatively easy, and the economics, back to normal.
Shopify (TSX: SHOP) (NYSE: SHOP) stock could be a solid addition to your portfolio at current levels. It has many growth catalysts that can promote its growth. Plus, Shopify stock could easily double as e-commerce growth picks up again.
It is investing in e-commerce infrastructure and is well positioned to benefit from the digital transformation. In addition, the increasing penetration of e-commerce sales as a percentage of total retail sales bodes well for Shopify’s growth.
Shopify aims to launch its existing products in new geographies and strengthen its fulfillment network, which is expected to accelerate its growth. In addition, the growing penetration of its payment offerings, new product launches, partnerships with social media companies and a large addressable market should support its financial backing.
It’s worth mentioning that Shopify faces easier comparisons in the second half of 2022, which is a positive. In addition, management updated that its growth initiatives are gaining traction. These all point to a sharp recovery in Shopify stock.
well health (TSX:WELL) is a great stock to add to your TFSA portfolio. Shares of this digital healthcare provider have tumbled on hopes that an economic reopening will slow its growth and reduce demand for its offerings. However, that hasn’t happened yet as the company continues to deliver consistent revenue growth and positive adjusted EBITDA.
Significantly, in the first quarter of the current financial year, Well Health’s top line had jumped 395%. Strong organic sales and gains from acquisitions supported its revenue. What sets it apart is the strong growth in its all-encompassing patient visits, which reflects the strength of its platform.
Well Health recently announced that the months of April and May of this year saw record revenue growth due to the ongoing momentum in omnichannel patient visits. In addition, its US-focused virtual patient services business is growing rapidly. This sets the stage for another solid quarterly performance in the second quarter.
It reiterated its full-year outlook and expects to deliver more than $525 million in revenue for 2022. Also, it expects its adjusted EBITDA to reach $100 million.
Ongoing momentum in its business, an extensive network of outpatient medical clinics, rapid gains in M&A activities, and a strong US-focused business augurs well for growth. In addition, Well Health is expected to deliver profitable growth in 2022, which is positive and could lead to an improvement in its stock price.
The post TFSA Cash: Double It With These 2 TSX Stocks first appeared on The Motley Fool Canada.
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Fools contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has posts and recommends Shopify.