Last year, the Canadian government announced that the annual contribution to the Tax-Free Savings Account (TFSA) would rise to $6,500. That brings the cumulative contribution room, at least for those who have been eligible for a deposit since January 2009, to $88,000. The S&P/TSX Composite Index rose 38 points on Thursday, March 1. Today, I want to look at three stocks that have the potential to make you a TFSA millionaire. Let’s jump in.
This crypto-connected stock offers a real shot at huge growth this decade
The cryptocurrency space has proven explosive and extremely volatile since being thrust into the mainstream in the latter half of the previous decade. Top cryptos like Bitcoin and Ethereum erupted following the beginning of the COVID-19 pandemic. Bitcoin’s price would shoot to an all-time high in late 2021 before suffering sharp losses afterward. It has only been able to recoup a fraction of its major losses to start 2023.
Hut 8 Mining (TSX:HUT) is a Toronto-based cryptocurrency mining company. Investors who want exposure to the crypto and blockchain market in their TFSA should look to this stock. Its shares have plunged 71% year over year as of close on March 1.
Shares of Hut 8 Mining were trading at $2.22 as of close on March 1. In late 2022, the stock achieved an all-time high of $20.61. This illustrates the explosive capability of crypto-focused equities. As a hypothetical, we could snatch up 11,000 shares of Hut 8 Mining today for a purchase price of $24,420. If this stock managed to climb back to its all-time high of $20.61, that investment would be worth $226,710.
Here’s why I love this growth stock for TFSA investors
Enthusiast Gaming (TSX:EGLX) is a Toronto-based company that is engaged in the media, content, entertainment, and esports businesses in the United States, Canada, and around the world. Shares of this esports stock have dropped 74% year over year. Meanwhile, the stock has jumped 18% so far in 2023.
TFSA investors should be eager to get in on the esports space. Grand View Research recently estimated that the global esports market was valued at US$2.00 billion in 2021. The market researcher projects that this market will deliver a compound annual growth rate (CAGR) of 21.9% from 2022 through to 2030.
In the third quarter (Q3) of 2022, this company delivered revenue growth of 17% to $50.6 million and gross profit surged 64% to a record $16.6 million. On February 22, the company announced that Enthusiast had become the number one gaming property for unique visitor traffic in the United States.
Enthusiast stock was trading at $0.91 per share on March 1, 2023. Back in April 2021, its shares hit a three-year high of $10.64. I could snatch up 33,000 shares of this stock for a purchase price of $30,030 today. If Enthusiast managed to climb back to its three-year high of $10.64, that investment would be worth $351,120.
TFSA investors: One more growth stock that holds huge potential
Air Canada (TSX:AC) is the third stock that TFSA investors should consider today. This company is the largest commercial passenger airliner operating in Canada. Its shares have dropped 15% from the previous year.
This company took its lumps during the COVID-19 pandemic, along with the broader airline space. Fortunately, it is on the road to recovery. It released its final batch of fiscal 2022 results on February 17. Air Canada achieved record Q4 passenger revenues of $4.06 billion and record Q4 operating revenues of $4.68 billion. Canada’s largest airline has bounced back more quickly than expected.
Air Canada stock has demonstrated incredible growth potential in the prior decade. The Great Recession served as another existential threat that pushed its shares below the $1 mark in early 2012. By January 2020, its shares had breached the $50 price point. An investor who purchased 26,000 shares of Air Canada for its January 20, 2012, value of $0.97 for $25,220 would have seen that investment grow to an incredible $1.32 million on January 17, 2020.