If you wish to multiply your TFSA (Tax-Free Savings Account) wealth by the time you retire, you may want to give Foolish Investing Philosophy a try by investing a large portion of your portfolio in some fundamentally strong stocks for the long term. Long-term stock investing can help you get outstanding returns in the long run without taking huge risks. But if you’re finding it difficult to pick a quality stock for your TFSA in 2023 due to ongoing macroeconomic challenges and high market volatility, let me help you by highlighting a rallying Canadian stock you can buy now to hold for years to come.
A must-buy stock for TFSA investors in 2023
When you’re investing for the long term, you don’t necessarily have to try to time the market. Instead, you should focus more on carefully analyzing the future growth prospects of the stock you’re betting on.
Keeping that principle in mind, TFI International (TSX:TFII) could be an amazing stock TFSA investors can consider buying in 2023 to hold for the long term. This Saint-Laurent-headquartered transportation and logistics company currently has a market cap of $14.5 billion. In the last three years, TFII stock has delivered solid 388% positive returns and currently has an annual dividend yield of 1.1%. While its share prices have already risen nearly 24% to $167.88 per share, its stock still looks really attractive based on its long-term growth potential.
What makes this stock worth buying now?
Many businesses, especially from the tech sector, witnessed sharp growth during the COVID-19 phase in 2020 as the demand for digital commerce products surged sharply. Most such companies, however, failed to maintain this fast financial growth trend in 2021 and 2022 amid reopening economies. This is one of the key reasons why most tech stocks crashed last year.
Unlike tech companies, the demand for TFI International’s logistics services massively improved in the last two years, accelerating its financial growth. To give you an idea, the Canadian logistics services provider’s total revenue rose 141% to US$8.8 billion in the five years between 2017 and 2022. More importantly, its adjusted earnings during the same five-year period jumped 400% to US$8.02 per share, as its profit margin expanded significantly due to improving pricing for its services. Notably, TFI had an adjusted net profit margin of 4.1% in 2017, which expanded to 8.3% in 2022.
Bottom line
Although ongoing macroeconomic uncertainties could act as short-term challenges for TFI International’s business in the ongoing year, its long-term growth outlook remains strong, as it continues to focus on improving efficiency, network density, cost control, and business expansion. Last month, TFI International acquired a Canadian freight transportation and trucking firm Axsun Group to further strengthen its presence in the logistics segment and expand its customer base.
Given these positive factors and its improving fundamental outlook, I expect TFII stock to outperform the broader market by a huge margin in the long term, which can help your TFSA money grow faster than you think.
