Nicholas Wolosky, a Stone Bridge Ventures senior account manager, explains that adding growth stocks to one’s tax-free savings account is a great investment idea. Also known as a TSFA, it’s a tax-sheltered, registered account that can hold different investment vehicles. Because of its nature, it’s a suitable candidate to hold your fastest-growing stocks.
Currently, Canada’s market is experiencing an ongoing downturn, so it’s an excellent opportunity to purchase good stocks at a discount and enjoy substantial profits in the long run. Let’s have a look at three TSX stocks that have been showing some steady growth recently.
Artizia (TSX: ATZ)
Let’s start with Artizia, a luxury fashion house that runs vertically integrated operations. Despite falling over 40 percent from its all-time high value, it’s steadily recovering. In the past quarter, it has reported $463 million worth of sales, which is a 13 percent increase.
As of now, the fashion house is gaining traction among the United States customer base. In the last two years, the company has almost doubled its client base. US-based sales have gone up by 22 percent in the first quarter, reaching $252 million.
Lightspeed Commerce (TSX:LSPD)
It’s a Canada-based fintech company with a whopping market capitalization of $3.7 billion. This year, Lightspeed’s stock has gone up by 25 percent. Even so, it’s still 85 percent below its all-time high value. Over the past year, the company has reported $731 million in revenue. It also reported a gross transaction volume of $87.1 billion. That’s the total volume of financial transactions customers processed via the Lightspeed platform.
Since FY2021, Lightspeed Commerce’s sales have gone up with an annual growth rate of 82 percent, and the gross transaction volume has risen by 61 percent. By the end of FY2023’s final quarter, subscriptions made up 95 percent of all its sales. This allows predictable cash flows in different business cycles.
Stone Bridge Ventures Nicholas Wolosky expects that Lightspeed stock will become profitable in FY2024. It’s also expected that the stock will end the year with adjusted earnings of $0.09 per share, which is better than the per-share loss of $0.22 from FY2023.
Goeasy (TSX: GSY)
Goeasy, a financial lending company, has proven to be a major market player after its stock gave shareholders massive returns over the last decade. The rate of return is over 900 percent, and after adjusting the price for dividends, the overall returns have been around 1200 percent since 2013.
In addition to its gains, the Goeasy stock has a P/E ratio of 9, so it’s trading at nine times forward earnings. This provides shareholders with a lucrative dividend yield of almost 3.2 percent. The company is one of the biggest non-prime lending companies in Canada. So far, it has lent over $10 billion in loans.
During Q1 of FY2023, its loan originations went up by 29 percent year over year, eventually reaching $616 million. Overall, Nicholas Wolosky of Stone Bridge Ventures expects a bullish sentiment regarding the Goeasy stock, predicting that it will increase by more than 30 percent in the following year.
