3 Growth Stocks to Add to Your TFSA This Week

TFSA investors desiring more tax-free money growth have three excellent prospects on the TSX this week.

| More on:
growing plant shoots on stacked coins

Image source: Getty Images

Investors feel uneasy during inflationary periods, because stocks tend to be more volatile. Moreover, some would pick value stocks over growth stocks when inflation is high. However, there are exceptions in the current complex environment. TFSA investors in particular still have excellent prospects for tax-free money growth.

ARC Resources (TSX:ARX) and Verde Agritech (TSX:NPK) are the among the top performers today with massive growth potentials. Meanwhile, WELL Health Technologies (TSX:WELL) is likely to be the winning stock in healthcare sector in 2022.

Bolstered financial position

Despite the 1.41% slide on April 6, 2022, energy remains the top-performing sector year to date (+36.2%). Investors in Arc Resources are happy with the 47.48% gain, thus far, this year. Also, at $16.86 per share, the trailing one-year return is 120.15%. An additional perk is the 2.34% dividend after the 36% payout hike in Q4 2021.  

The $11.87 billion pure-play Montney producer and dividend-paying energy company has several attributes and competitive advantages. Besides its investment-grade credit profile due to commodity and geographic diversity, ARC has low-cost operations.

ARC delivered a record-low operating expense in 2021. The free funds flow of $1.35 billion was the highest in the company’s 25-year history. Also, it was a transformative year due to the synergies created with the purchase of Seven Generations Energy in April.

Apart from the bolstered financial position following completion of the business combination, ARC reduced net debt by 25%, or $0.6 billion. Net income was $786.6 million compared to the net loss of $547.2 million in 2021. This year, ARC has a capex budget of $1.15-$1.25 billion and expects to offset inflationary pressures through continued efficiency improvement initiatives.

Accelerated market expansion

Verde Agritech is a potential multi-bagger in 2022. Performance-wise, the agri-stock has rewarded investors with a 921.13% (116.64% CAGR) total return in the last 3.01 years. As of this writing, the year-to-date gain is 158.93%. The 12-month average price target of market analysts is $13.22, or an 82.3% appreciation from its current share price of $7.25.

This $365.39 million agricultural technology company is a fertilizer producer. In 2021, revenue and net profit soared 202% and 540% versus 2020. Because of the accelerated market expansion, management launched the Paid for Growth (P4G) In January 2022. The cornerstone program aims to distribute higher gains to shareholders.

Exponential revenue growth

WELL Health Technologies is an awesome pick this month. The healthcare stock has gained 19.62% in the last 30 days and is now up 1.83% year to date. Based on market analysts’ buy rating, the share price of $5 could appreciate between 50% ($7.50) and 100% ($10) in 12 months.

The $1.03 billion digital healthcare company has an innovative practitioner enablement platform that offers comprehensive end-to-end practice management tools. Besides the virtual care and digital patient engagement capabilities, the platform provides electronic medical records, revenue cycle management, and data protection services.

In 2021, revenue soared 501.8% to $302.32 million versus 2020. Adjusted net income reached $16 million compared to the $1.34 million in the previous year. Management said its organic growth in combination with the focus on tuck-in acquisitions should bring the annual revenue in 2022 to more half a billion.

Buying opportunities

TFSA investors can scoop any of the three growth stocks this week. Their account balances could rise considerably in one year.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

Stock analysts were once excited about construction company Aecon as an investment.
Coronavirus

Bull or Bear: Why Analysts Changed Their Tune on Aecon Stock

Analysts had been champing at the bit for the construction company, but the tides have turned.

Read more »

Specialty Brands faces higher raw materials costs.
Dividend Stocks

What’s Next for Premium Brands Stock?

Shares of the specialty food production and distribution company have fallen about 25% since last October.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

2 Interesting Buys in Any Market

Here are two intriguing buys in any market climate that offer defensive appeal as well as growth and income earning…

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Should You Buy Bank Stocks Now?

Canadian bank stocks are getting cheap. Is this the right time to buy?

Read more »

stock data
Stocks for Beginners

2 Reliable Stocks Beginners Can Buy Amid the Market Selloff

As the broader market turmoil continues, new investors can buy these two reliable dividend stocks to get good returns on…

Read more »

Biotech stocks can be good yet risky investments.
Coronavirus

Is Bellus Health Stock Still a Buy After 30% Earnings Jump?

The biotech continues to make progress on obtaining FDA approval for its chronic-cough therapy.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Investors: 3 TSX Stocks for Tax-Free Passive Income

These Canadian corporations have strong visibility over future earnings and dividend payouts.

Read more »

Piggy bank next to a financial report
Investing

Do You Have Cash Sitting in Your TFSA? Now Is a Great Time to Buy Stocks

If you have cash in your TFSA that you're looking to invest, now is a great time to buy high-quality…

Read more »