Canadian stocks have seen a sharp correction in 2022 so far. While the S&P/TSX Composite Index has started October on an upbeat note, it witnessed about 16% value erosion in the previous six months. But if youâre a long-term TFSA (Tax-Free Savings Account) investor, you likely already know that the market selloff acts as an opportunity to let investors buy their favourite stocks at a bargain.
In this article, Iâll highlight three of the best Canadian stocks you can buy using your TFSA right now to hold them forever.
A stable growth stock for your TFSA
Aritzia (TSX: ATZ) is a Vancouver-based apparel designer and retailer with a market cap of about $5.4 billion. Until a few years ago, this company was only focused on womenâs everyday luxury clothing. In 2021, it accelerated expansion into menâs clothing by acquiring a 75% stake in the Canadian premium athletic wear designer Reigning Champ. Despite its consistently improving fundamental outlook, ATZ stock currently trades with 8.3% year-to-date losses at $47.80 per share.
In the May quarter, Aritzia registered a 65% YoY (year-over-year) jump in its total revenue to $407.9 million with the help of consistently growing demand for its products in the United States market. This factor also helped the company register a solid 84% YoY jump in its adjusted quarterly earnings to $0.35 per share.
I expect Aritziaâs financial growth to accelerate further in the coming years as its U.S. market expansion has just started and has received a great response so far. In addition, consistently growing traffic on its e-commerce platform could also contribute to its business growth and help its stock yield solid returns for TFSA investors.
A safe dividend stock for your TFSA
If youâre a long-term TFSA investor, chances are high that you already own Bank of Nova Scotia (TSX: BNS) stock in your portfolio. But if you donât, the recent dip in its stock presents an opportunity for you to buy this amazing dividend stock at a big bargain. Scotiabank currently has a market cap of $79 billion, as its stock hovers at $65.58 per share with 24.7% year-to-date losses.
While Scotiabankâs earnings-growth rate fell slightly in the July quarter due to rising inflationary pressures and sluggish economic growth, its long-term growth outlook remains strong, with the underlying strength in its well-diversified business model. At the current market price, BNS stock offers an attractive annual dividend yield of around 6.3%, which should help TFSA investors generate reliable passive income.
And a high-growth stock for your TFSA
If youâre already holding some stable stocks like Aritzia and Scotiabank in your TFSA stock portfolio, you should consider boosting your potential returns by investing in some quality high-growth stocks. Amid the ongoing market selloff, I find Lightspeed Commerce (TSX: LSPD) stock undervalued. This MontrĂ©al-based tech company has a market cap of $3.7 billion after its stock has lost nearly 49% of its value in 2022 so far to trade at $24.87 per share.
Lightspeed mainly focuses on providing its omnichannel commerce platform to merchants across the globe. In the June quarter, the company reported a 50% YoY increase in its total revenue to US$173.9 million. While ongoing inflationary pressures are forcing merchants and small businesses to cut their discretionary expenses these days, the long-term demand outlook for Lightspeedâs cloud-based commerce platform remains strong, with an expected surge in digital commerce.
