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2 Amazing Stocks To Buy With $6,000

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Do you have a Tax-Free Savings Account (TFSA) contribution schedule or pattern? While it’s not necessary, it certainly helps ensure that your filling your TFSA to the brim and have enough saved up in the tax-free account. The easiest calculation, based on the $6,000 contribution room, is $500 a month. If you have a steady income, you can ensure that you are saving enough by contributing to the TFSA before you start using your income for your monthly expenses.

But your saving and investing schedule might not coincide. You don’t have to invest your savings right away (though the sooner you do, the better it might be for your returns). If you believe that the stock might dip in the near future and you’d have a chance to buy a company at a more favorable price, it’s an adequate reason to wait.

For this strategy to be optimally successful, you have to have a few stocks on your radar that you are tracking for a dip. And for your TFSA contributions in 2021, there are two stocks that you might consider keeping an eye on.

An alternative fuel company

When we think of alternative fuel, our mind jumps directly to an electric vehicle, but there are quite a few solutions between gasoline and electricity. CNG and LPG tend to be cleaner and relatively more portable and powerful compared to electric vehicles as they stand today, and that’s the business Vancouver-based Westport Fuel Systems (TSX:WPRT) (NASDAQ:WPRT) is in.

The company has been in this business for fifty years, and is well positioned to provide “transitional solutions” as the world moves towards a cleaner tomorrow. It has about 1,400 patents and applications to its name, and its products are sold in 70 countries. Its impressive infrastructure portfolio comprises 10,800 LNG stations in Europe and China.

Westport Fuel has an impressive balance sheet, and apart from two bad quarters in 2020, the company has been steadily growing its revenues steadily for the last four years. Like many other companies, the company saw an unnatural growth bout after the crash and grew about 660% in the last 12 months. It has come down 43% from its recent peak, and it might get more attractively valued if it slips further. At the right price, it might prove to be a decent long-term growth bet.

A transportation company

Titanium Transportation Group (TSXV:TTR) is a Bolton-based company with a market capitalization of $173 million. It offers three services, trucking, logistics, and warehousing. The trucking fleet consists of 800 power units and about 3,000 trailers. The company has a diversified customer base, 36% of which consists of manufactured goods businesses.

The company recently peaked and has grown about 200% in one year, but despite its impressive growth, it’s trading at a price-to-earnings of 23.4 and a price-to-book of 3.1 times. It has a strong balance sheet, and in the last two quarters, its revenues have grown quite rapidly. If it takes the right steps to consolidate business in the e-commerce-heavy market of the future, the company might be able to reach new heights.

Foolish takeaway

Even if you don’t want to park all of your yearly TFSA contributions to the two companies, they might still be worth considering. Both companies have strong fundamentals, a decent presence in their respective industries, and they are adequately positioned to take advantage of the changes the market will be going through in the next few years.

Speaking of two amazing stocks you should consider buying with your TFSA contributions...

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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 Adam Othman has no position in any of the stocks mentioned.

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