Strategic Watchlist: The TSX Stocks I’m Ready to Snap Up on Dips

I don’t want to miss the chance to buy these top TSX stocks on a dip because they offer solid growth potential.

| More on:
Start line on the highway

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The TSX Composite Index soared 18% in 2024, rewarding Canadian investors with impressive gains. But as 2025 kicks off, volatility has made an unwelcome return. With investors weighing the impact of cooling inflation, falling interest rates, and lingering global risks, uncertainty is shaking up the markets.

Adding to the turbulence, Prime Minister Justin Trudeau’s surprise announcement that he plans to resign has sparked questions about Canada’s political future and its potential economic implications. For disciplined long-term investors, however, moments like these could be an opportunity to snap up high-quality TSX stocks at discounted prices.

In this article, I’ll share two top TSX stocks that are on my strategic watchlist in 2025 and explain why I’m ready to add them to my portfolio during the next dip.

TransAlta stock

The first TSX stock I’m keeping an eye on is TransAlta (TSX:TA). This Calgary-based power generation firm, which specializes in renewable energy and traditional power generation, has been gradually transitioning toward a cleaner energy portfolio. After rallying by 82% over the last year, its stock currently trades at $19.54 per share with a market cap of $5.8 billion.

While TransAlta stock’s recent performance has been impressive, its robust financial growth trends and proactive growth initiatives make it even more appealing for long-term investors. The company’s ability to adapt to market conditions is evident in its approach to Alberta’s energy market, which saw significant volatility in 2024. For example, its proactive hedging strategy and asset optimization efforts helped it deliver a free cash flow of $0.47 per share in the third quarter despite declining Alberta spot power prices and milder weather.

Moreover, TransAlta’s focus on renewable energy and strategic acquisitions, such as its recent acquisition of Heartland Generation, highlights its proactive efforts to accelerate future growth. Given its strong fundamentals, I don’t want to miss the chance to buy TransAlta stock. While I may not buy it right now due to its recent rally, I’m definitely watching it closely for a more attractive entry point.

Created with Highcharts 11.4.3TransAlta + Aritzia PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Aritzia stock

I already own Aritzia (TSX:ATZ) stock, and I have to admit — it’s been one of the most exciting growth stocks in my portfolio. Over the last 12 months, ATZ stock has jumped by 127% to currently trade at $56.91 per share with a market cap of $6.4 billion. Given this robust performance and its impressive financials, I’m seriously considering adding more Aritzia stock to my portfolio on a dip.

While the stock already outperformed the broader market by a huge margin in 2024, the company’s recent strong fundamentals suggest there could be even more room to run. While Aritzia is yet to announce its November 2024 quarter results (expected on January 9, 2025), in the previous quarter ended in August, the company’s total revenue jumped 15.3% year over year, even as most other retailers continue to struggle with a slowdown in consumer spending. Strong demand for its products in the U.S. market helped it post $0.21 per share in adjusted quarterly earnings, beating analysts’ expectations of $0.15 per share.

With its strong U.S. growth, expanding e-commerce presence, and solid profitability improvements, Aritzia’s long-term potential makes it a really attractive buy on the dip for investors seeking solid long-term returns.

Should you invest $1,000 in Aritzia right now?

Before you buy stock in Aritzia, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Aritzia wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Jitendra Parashar has positions in Aritzia. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Stocks for Beginners

Canada day banner background design of flag
Tech Stocks

The Top Canadian Stock to Buy With $5,000 in 2025

There are few Canadian stocks out there that offer the outlook of this tech stock, bound for more growth.

Read more »

Cannabis business and marijuana industry concept as the shadow of a dollar sign on a group of leaves
Stocks for Beginners

Buy the Dip Before It’s Too Late: This Canadian Stock Won’t Stay Cheap Forever

Investors might think that cannabis stocks are out, but this one could be the top Canadian stock to consider.

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

worry concern
Stocks for Beginners

Got $2,000? Buy These 2 Canadian Stocks as Trump Tariffs Rock the Market

There are two Canadian stocks that have continued to do well even amidst this turmoil, so let's take a look.

Read more »

dividends grow over time
Stocks for Beginners

The Top Canadian Stocks to Buy Right Away With $4,000

If you only have $4,000 to invest, then these Canadian stocks are some of the best options out there.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Buy the Dip on the Return of Recession Stocks?

If a recession comes back, there are some stocks that could fair well afterwards. And this is one of the…

Read more »

Man holds Canadian dollars in differing amounts
Stocks for Beginners

Cash Is King? Think Again During Today’s Market Dip

Sure, cash is great, but during a market dip investors may want to consider using some of the cash to…

Read more »

grow money, wealth build
Stocks for Beginners

How I’d Build a $15,000 Portfolio for Income and Growth With Canadian Value Stocks

Looking for some Canadian value stocks to buy without breaking the bank? Here's a trio to consider buying this month.

Read more »