The Motley Fool

2 Hot TSX Stocks to Give Your TFSA a Boost!

Image source: Getty Images

If you’re a young investor with few financial obligations coming up over the near to medium term, you should seek to take a chance on some of the choppier growth stocks with your TFSA (Tax-Free Savings Account). Now, I’m not talking about stashing Bitcoin funds or cryptocurrency miners in the core of your TFSA. Rather, I’m talking about smaller-cap businesses that could give your portfolio a growth edge over the next 10, 20, or 30 years.

While the stocks presented in this piece are extremely volatile and not for the faint of heart, I think they’re worth adding to your TFSA radar. So, without further ado, consider shares of Score Media and Gaming (TSXV:SCR) and Goodfood Market (TSX:FOOD), two tech-savvy small to mid-caps that I believe could make a real splash over the next decade and beyond.

Score Media and Gaming: A small-cap momentum stock that looks unstoppable

Score Media and Gaming has been one of the hottest stocks out there following the legalization of single-event sports-betting products. The managers at Score Media, the firm behind theScore Bet, estimate that the market for Canadian online gaming could be worth between US$3.8 and US$5.4 billion. That’s nothing short of remarkable, and Score Media has a front-row seat to the growing market, making it one of the most compelling small caps to consider for your TFSA growth fund.

As a user of theScore’s digital media app to track scores on my favourite hockey teams (go, Canucks, go!), I have to say that I’m a huge fan of the intuitive interface and the firm’s development and design capabilities. While it remains to be seen if Score will land a grand-slam homerun with the incredible opportunity at hand, I certainly wouldn’t want to bet against the name, as shares continue rocketing by the day.

The stock was up another 17% on Tuesday, with a valuation that’s starting to get quite frothy (98 times book and 95.4 times sales). That said, there is room to run for the Canadian sports gaming play, and I think the $1.9 billion market cap is too low. Score could emerge as a leader in the Canadian sports-betting market, so if you’ve got a stomach for volatility, now is as good a time as any to get at least a bit of skin in the game!

GoodFood Market: A cheap TFSA growth pick

GoodFood Market is a Canadian meal-kit delivery firm that’s been among the biggest winners amid the coronavirus pandemic. While I do think the firm could bleed subscribers in the post-COVID world, as it becomes safer to do the weekly grocery hauls, I wouldn’t discount the retention efforts of the firm or the pandemic-induced shift in consumer habits.

Moreover, I’m a big fan of the trajectory of the firm’s margins and wouldn’t at all be surprised if it looks to go after the Canadian meal-kit market with a greater value proposition moving forward. With a growing lineup of “grocery items” and ready-to-cook meals (think cold-pressed juices, loaves of bread, and chilis) that extend beyond meal kits, the company could quickly bolster its ARPU (average revenue per user) numbers for many years to come.

As one of the best COVID-19 hedges out there for TFSA investors, I’d look to buy shares today while they’re still cheap at 2.6 times sales.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Goodfood Market.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.