The Ultimate Growth Stocks to Buy With $7,000 Right Now

Choosing the right growth stocks is not difficult, but if you select investments you want to hold for years, even decades, the process becomes a bit more complex.

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The yearly Tax-Free Savings Account (TFSA) contribution has been set at $7,000 for 2024, and if you want to use that to add some solid growth to your portfolio, dozens of stocks might fit the bill. However, if you are looking for companies you may be able to hold for several years, the choices may get slightly more limited.

A trucking company

While the business model has expanded far beyond this, the roots of Montreal-based TFI International (TSX:TFII) are in trucking, and it’s currently the owner of one of the largest (if not the largest) trucking fleets in the country.

This makes it a necessary cog in the national supply chain. It has also grown its logistics network, owns over 90 operating companies, and has a network of over 590 logistics facilities in Canada and the U.S.

The stock has been a decent grower since its inception, but it really took off during the pandemic, riding on the e-commerce boom (among other things). It has risen over 380% in the last five years alone, and if it manages to repeat this performance, it can be a powerful addition to your TFSA portfolio and boost the growth of your nest egg by a significant margin.

It’s also a trusted dividend stock, but thanks to its powerful growth, the yield is usually quite low (1.1% when writing this).

A cargo airline

Dedicated cargo airlines are relatively uncommon. Typically, established airlines offer this service, and that’s what makes Cargojet (TSX:CJT) a bit unique. It’s Canada’s premier cargo airline with a sizable fleet and a strong track record for timely deliveries, making it an ideal choice for time-sensitive cargo transportation. It has a sizable fleet of 41 aircraft and completes at least 71 routes a day on average.

Its fundamental strengths and the business model were the early catalysts of its long-term bull market phase, which pushed the company’s valuation over 2,600% in less than a decade. However, the stock was too overpriced and due for a correction, and it triggered a major slump, causing the stock to lose over two-thirds of its value.

However, the value has now normalized, and the stock has started its recovery journey again; if it starts growing at its former pace, Cargojet will emerge as one of the most powerful growth stocks in Canada.

A railway company

Canadian Pacific Kansas City (TSX:CP) is one of the two railway giants in Canada, and even though its growth history hasn’t been very consistent, it has mostly been bullish, and the returns in the last decade are quite impressive. If we include the dividends, the stock returned over 270% to its investors in the last 10 years.

But even if we look beyond its former performance, the stock is a compelling growth pick because, thanks to the bold acquisition that has expanded its reach well into Mexico, it has also acquired a promising future. Most of the earnings estimates for the company are quite positive and may contribute to its growth going forward.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Cargojet made the list!

Foolish takeaway

While only two of the three stocks are blue chips per se, all three are industry leaders and have their own characteristic strengths that offer them resilience against weak markets and may contribute to their long-term growth prospects. All three are dividend payers as well, but growth is the primary reason to buy them for your TFSA.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool recommends Canadian Pacific Kansas City. The Motley Fool has a disclosure policy.

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