2 Tech Stocks That Could Triple Your TFSA Cash in Less Than 5 Years

TFSA investors should consider buying these two tech stocks right now. They’ve already started recovering in July after consistently falling for months.

| More on:
A worker uses the cloud for paperless work. tech

Source: Getty Images

If you’re one of those stock investors who witnessed the recent market selloff and have some cash in your TFSA (tax-free savings account), now could be the perfect time for you to act. After consistently falling for months, some tech stocks with strong growth prospects have started showcasing signs of a sharp recovery. While the Canadian and American central banks implement aggressive policy measures to tame inflation, better-than-expected tech earnings are boosting investor confidence this month. This is leading to a sector-wide rally in tech. With this in mind, I’m going to highlight two of the best tech stocks TFSA investors can buy now. These shares have the potential to triple your TFSA cash in five years or less.

BlackBerry stock

BlackBerry (TSX:BB)(NYSE:BB) has been one of the most undervalued tech stocks on the Canadian stock market in recent years. This Waterloo-based tech company currently has a market cap of about $4.6 billion and its stock trades at $7.93 per share with 34% year-to-date losses.

In the last few years, BlackBerry has showcased potential to become one of the biggest global players in the enterprise security solutions segment. Additionally, the company is continuing to accelerate its efforts to develop advanced technological solutions for the automotive industry based on artificial intelligence and machine learning.

Along with the consistently rising popularity of its QNX operating system, BB is developing its intelligent vehicle data platform, IVY — a scalable, cloud-based connected software platform that gives developers and automakers a reliable and secure way to share vehicle sensor data. The Canadian tech company has already started publicly demonstrating the true potential of the IVY platform — attracting positive feedback from many of the largest global automakers.

I expect IVY will immensely accelerate BB’s financial growth in the coming years and trigger a long-term rally in its stock. It’s already started to rally in July, so TFSA investors may want to consider buying this tech stock right now. Month-to-date, BB stock is up more than 14%.

Shopify stock

Shopify (TSX:SHOP)(NYSE:SHOP) stock is well-known for consistently delivering outstanding positive returns each year. After growth of more than 2,900% over the previous five years, this Canadian tech stock has experienced a 72% value erosion in 2022. This is due in part to lowered growth in demand for services and solutions combined with rising expenses for efforts to expand the business internationally. This value erosion has made it one of the worst performing TSX Composite components for the year. On a positive note, the company’s efforts to achieve higher growth seem to be helping it regain investor confidence this month, as its shares have recovered by nearly 24% in July so far.

The growth trend for Shopify’s financials is likely to continue, and the tech company is expected to register strong double-digit sales growth in 2022 despite subsiding pandemic-driven surges in demand. Moreover, the e-commerce platform provider’s recent tie-ups with American tech giants like Google and Twitter are expanding its portfolio of innovative services for its merchants.

These efforts also strengthen the company’s long-term financial growth outlook by attracting more merchants to its platform. If you missed buying Shopify stock after its listing on the TSX in 2015, it could be the right time to buy this high-growth tech stock at a bargain, as it has the potential to triple your TFSA money within just a few years.

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.

The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Twitter. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

edit Sale sign, value, discount
Stocks for Beginners

These 3 Growth Stocks Are on Sale and Set to Surge

Some growth stocks are on sale right now that offer massive long-term potential for investors. Here's a trio to consider…

Read more »

Plane on runway, aircraft
Stocks for Beginners

Up 53% From its 52-Week Low, Is Cargojet Stock Still a Buy?

Cargojet (TSX:CJT) stock is up a whopping 53%, nearing closer to 52-week highs from 52-week lows, so what's next for…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »