I’d Aim for $1 Million Buying Just These 3 TSX Stocks

Canadians who are chasing big capital gains should scoop up TSX stocks with high growth potential like Aritzia Inc. (TSX:ATZ) and others.

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The S&P/TSX Composite Index was up 55 points in early afternoon trading on Monday, July 24. Some of the top-performing sectors included energy, base metals, and financials. Today, I want to explore how investors could hope to grow their portfolio to $1 million by targeting TSX stocks with high growth potential in the summer of 2023. Let’s dive in.

Here’s why I’m targeting this TSX stock in the artificial intelligence space

Coveo Solutions (TSX:CVO) is a Montreal-based company that provides applied artificial intelligence (AI) solutions. Investors should seek exposure to this space as there is an AI gold rush right now. Fortune Business Insights recently valued the global AI market at US$428 billion in 2022. The report projects that the market will grow to US$512 billion by 2030. That would represent a compound annual growth rate (CAGR) of 16% over the projected period.

Shares of this TSX stock have surged 24% month over month at the time of this writing. That has pushed the stock into positive territory so far in 2023. The company released its fourth quarter (Q4) and full-year fiscal 2023 earnings on May 30. It posted total revenue growth of 14% to $29.1 million and SaaS Subscription revenue growth of 17% to $27.1 million. For the full year, Coveo Solutions achieved total revenue growth of 30% to $112 million.

This TSX stock is trading in favourable value territory compared to its industry peers at the time of this writing. Moreover, Coveo Solutions possesses a fantastic balance sheet in late July. This TSX stock has the potential to erupt, as investors flock to the AI space right now.

This growth stock is undervalued in late July 2023

Aritzia (TSX:ATZ) is a Vancouver-based company that designs and sells apparel and accessories for women in the United States and Canada. Its shares have plunged 25% month over month at the time of this writing. The TSX stock has suffered a 45% retreat in the year-to-date period. Investors can see more of its recent performance with the interactive price chart below.

The company released its Q1 fiscal 2024 earnings on July 11. Net revenue increased 13% year over year to $462 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization; this metric aims to give a clearer picture of a company’s profitability. Aritzia posted adjusted EBITDA of $31.6 million in Q1 — down 54% compared to the prior year.

The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. Aritzia last had an RSI of 25, which puts this TSX stock in technically oversold levels. It also possesses an attractive price-to-earnings ratio of 17. This TSX stock is undervalued and boasts strong growth potential going forward.

One more TSX stock with high growth potential I’m looking to buy today

Nuvei (TSX:NVEI) is the third and final TSX stock I’d look to snatch up for its growth potential in the latter half of July 2023. This Montreal-based company provides payment technology solutions to merchants and partners in North America, Europe, and around the world. Shares of this TSX stock have jumped 25% so far in 2023.

The payment technology solutions market is geared up for strong growth in the years ahead. In Q1 2023, Nuvei posted revenue growth of 20% to $256 million. Adjusted EBITDA rose to $96.3 million compared to $91.6 million in the previous year. This company is on track for very strong earnings growth over the long haul.

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 Ambrose O'Callaghan has positions in Nuvei. The Motley Fool has positions in and recommends Aritzia and Nuvei. The Motley Fool has a disclosure policy.

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