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Got $6,000? Here Are 3 Top Stocks to Buy for Your TFSA Right Now!

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The contribution limit for your TFSA (Tax-Free Savings Account) in 2021 is $6,000. As any withdrawals from this registered account are exempt from Canada Revenue Agency taxes, it is advisable to buy and hold growth stocks that can increase your wealth at an exponential rate.

We’ll look at three top stocks you should consider for your TFSA right now.

Nuvei is a top bet for your TFSA

Shares of Nuvei (TSX:NVEI) went public in September 2020, and it has since returned around 33% in the last six months. The recent sell-off has impacted Nuvei returns, as the stock is trading 25% below its record high.

Nuvei is a payments technology company that is valued at a market cap of $8.4 billion. Its proprietary platform supports 150 currencies and about 450 payment methods. The company is expanding its geographic footprint at a rapid pace and launched local processing solutions in Russia, Brazil, Hong Kong, Singapore, and Columbia.

Nuvei recently received gaming service provider licences in Indiana and Colorado and it onboarded two cryptocurrency exchanges.

The company will report its Q4 results today, and Bay Street expects it to report revenue of $108.28 million and earnings per share of $0.24. Analysts also expect Nuvei’s sales to increase by 28.2% to $472 million and earnings to rise by 465% to $0.96 in 2021.

This indicates the stock is trading at a forward price-to 2021-sales multiple of 17.8 and a price-to-earnings multiple of 63.5, which is steep. But the high valuation is supported by Nuvei’s enviable growth potential.

Lightspeed POS

Another Canadian fintech company that aims to disrupt the digital payments space for enterprises is Lightspeed POS (TSX:LSPD)(NYSE:LSPD). This company ended its most recent quarter with a customer base of 115,000.

Lightspeed is expanding top-line growth at a fast clip. It operates in a highly fragmented market and is looking to build a robust payments ecosystem for small and medium enterprises.

LSPD sales were up 79% year over year at US$57.6 million in the December quarter. Even after accounting for acquisitions, top-line growth stood at a solid 50%. Lightspeed surpassed its own revenue guidance where it had forecast quarterly sales between US$44 million and US$47 million.

LSPD’s software and payments vertical accounted for 91% of total revenue. This indicates the company should generate recurring sales on a consistent basis, allowing it to derive a stable stream of cash flows across economic cycles.

Roku

The digital streaming industry has benefitted from the ongoing pandemic, as entertainment options were limited and people were largely confined to their homes. One stock that has multiple secular tailwinds is Roku (NASDAQ:ROKU), which is a platform for video-streaming services.

Shares of Roku are trading at 23% below its record high. Despite the recent pullback shares have gained a massive 1,440% since its IPO in late 2017. This suggests a $1,000 investment shortly after Roku went public would have ballooned to $15,000 today.

In Q4, Roku’s sales were up 58% year over year, as the number of active accounts on its platform surged by 5.2 million or by 39% on a sequential basis. Roku derives 72% of sales from its Platform business and 28% of sales from the Player segment.

While Platform revenue was up 81%, Player revenue growth stood at 18% in Q4. Total sales for the December quarter was US$650 million with adjusted earnings of $0.49. Wall Street estimated Roku to post sales of $619 million in Q4 with a loss of $0.05 per share.

Are you a fan of growth stocks like Lightspeed?

Should you invest $1,000 in Lightspeed POS right now?

Before you consider Lightspeed POS, you may want to hear this.

Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Lightspeed POS wasn't one of them.

The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.

Learn More Today!

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.

David Gardner owns shares of Roku. The Motley Fool owns shares of and recommends Roku. The Motley Fool owns shares of Lightspeed POS Inc. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

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