TFSA Catch-Up: How to Invest if You Can Put in $20,000 Today

Canadians should look to exciting TSX stocks like Jamieson Wellness Inc. (TSX:JWEL) to target with $20,000 in our hypothetical TFSA.

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The S&P/TSX Composite Index rose 40 points on Tuesday, September 12. Some of the best-performing sectors on Tuesday included energy, telecoms, and financials. Meanwhile, most sectors suffered minor to moderate losses on the day. In this piece, I want to seek out stocks that we can stash in a Tax-Free Savings Account (TFSA) at a potential discount. The annual contribution limit is currently $6,500. There are many Canadians who use a TFSA who have still not maxed out their account. The cumulative contribution room sits at $88,000 at the time of this writing. For this hypothetical, I want to focus on investors who might have $20,000 of extra room to use in 2023. Let’s dive in.

TFSA investors should target this under-the-radar streaming stock

Haivision Systems (TSX:HAI) is the first stock I’d look to snatch up in our TFSA as we approach the midway point in September 2023. This Montreal-based company provides infrastructure solutions to a worldwide client base. It is particularly focused on producing video streaming technology, which should pique investor interest as this space is booming. Shares of this TSX stock have dipped 1.9% month over month as of close on Tuesday, September 12. Meanwhile, the stock is still up 7.2% so far in 2023.

This company recently announced that it would unveil its third-quarter (Q3) fiscal 2023 earnings after markets close on Wednesday, September 13. In Q2 2023, Haivision Systems delivered revenue growth of 17% year over year to $35.1 million. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were flat at $26 million.

Analysts are projecting substantial earnings growth at Haivision Systems in the quarters to come. Moreover, this company boasts an immaculate balance sheet and is trading in good value territory relative to its industry peers. This stock could deliver massive tax-free gains in your TFSA going forward.

Why I’m super bullish on Pet Valu for the future

Pet Valu (TSX:PET) is a TSX stock I’m still beating the drum about in the late summer season. Canadians rushed to purchase many pets during the COVID-19 pandemic — a trend that was also present in the United States. The increase in pet ownership has translated to a jump in spending on pet care, food, and accessories. This stock has plunged 33% in the year-to-date period. TFSA investors should be excited to snatch up Pet Valu on the dip.

In Q2 2023, this company posted system-wide sales growth of 10% to $343 million. Meanwhile, revenue increased 12% year over year to $256 million. Adjusted EBITDA increased 3.9% from the previous year to $53.8 million.

Shares of Pet Valu currently possess a favourable price-to-earnings (P/E) ratio of 19 at the time of this writing. It also offers a quarterly dividend of $0.10 per share. That represents a modest 1.5% yield. Pet Valu is trading at a great value right now and offers a shot at huge growth in your TFSA in 2023 and beyond.

One more stock I’m stashing in a TFSA for the long haul

Jamieson Wellness (TSX:JWEL) is the third and final stock I’d look to spend our $20,000 windfall on in our TFSA. This Toronto-based company is engaged in the development, manufacture, distribution, marketing, and sale of natural health products that include vitamins and supplements in North America and around the world. Its shares have dropped nearly 26% so far in 2023.

This company delivered consolidated revenue growth of 49% to $167 million in Q2 2023. Meanwhile, adjusted EBITDA climbed 27% to $31.1 million. Jamieson stock is trading in favourable value territory compared to its industry peers with a P/E ratio of 23. Moreover, it offers a quarterly dividend of $0.19 per share, representing a 2.9% yield.

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 Jamieson Wellness. The Motley Fool recommends Pet Valu. The Motley Fool has a disclosure policy.

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