The Tax-Free Savings Account (TFSA) contribution is $7,000 for 2025, presenting Canadian investors a solid opportunity to invest in top stocks with strong fundamentals and generate tax-free capital gains and dividends. Against this background, here are the best Canadian stocks to buy now.
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Aritzia stock
Aritzia (TSX: ATZ) is one of the best Canadian stocks to buy now. This fashion retailer has consistently delivered strong revenue and earnings growth. Since fiscal 2016, Aritzia’s top line has grown at a compound annual growth rate (CAGR) of 19%, while its earnings have increased at a CAGR of 13%. As a result, its stock has surged an impressive 174% over the past five years.
Looking ahead, Aritzia’s business momentum will be sustained. Its exclusive fashion brands, focus on bringing newness to its offerings, presence in high-growth markets, prime retail locations, and efficient supply chain position Aritzia well for future growth. Further, Aritzia’s expansion into new geographies through new boutique openings, digital advancements, and operational efficiencies will accelerate its growth.
Looking ahead, Aritzia’s expansion plans will support its financials. The company is aggressively increasing its U.S. footprint, aiming to open 8 to 10 new boutiques annually through fiscal 2027. This initiative will expand its retail space by about 60%, strengthening brand recognition and boosting revenue. Meanwhile, its thriving e-commerce business and commitment to omnichannel improvements provide additional growth levers.
With its revenue projected to grow at a CAGR of 15–17% through 2027, Aritzia’s focus on operational efficiency and cost management should support its profitability and share price. Overall, Aritzia remains a compelling TSX stock for investors seeking high growth.
Loblaw stock
Loblaw (TSX: L) stock is another compelling investment choice. Shares of this Canadian food and pharmacy giant will likely add stability to your portfolio due to its low-risk and defensive business model. Moreover, its consistent revenue and earnings growth in all economic conditions has driven its stock price higher and supported regular dividend payments.
Notably, this blue-chip stock has delivered above-average returns over the past decade. Loblaw stock has increased at a CAGR of 17.3% in the last 10 years, delivering overall capital gains of 279.9%. Moreover, its strong earnings and cash flows enabled it to reward its shareholders with regular dividend payments and share repurchases.
The company’s value pricing and wide product range will drive traffic and overall financials. The expansion of its hard discount stores and growing penetration of online sales in food and pharmacy also augur well for growth. Further, strength in its pharmacy and healthcare services and focus on optimizing its retail network position it well to deliver strong growth.
Shopify stock
Shopify (TSX: SHOP) is one of the best TSX stocks to buy right now. This Canadian tech company has been delivering impressive sales growth, driven by an increase in gross merchandise volume (GMV), a key indicator of e-commerce growth. With more businesses embracing Shopify’s integrated platform and expanding suite of products, the company is well-positioned to capitalize on the digital shift.
Shopify has maintained double-digit growth in its GMV over the past several quarters. This momentum isn’t slowing down as Shopify attracts large global brands to its platform. More brands mean more transactions, ultimately boosting the company’s revenue. Additionally, the increasing adoption of Shopify’s payment solutions further strengthens its growth prospects.
Shopify is broadening its reach through international expansion, offline retail, and B2B channels. These areas provide significant growth potential. Moreover, its shift toward an asset-light business model and usage of artificial intelligence (AI) will enhance operational efficiency and drive long-term profitability.
