The Tax-Free Savings Account (TFSA) is a popular registered account that can help you build long-term wealth and accelerate your retirement plans. In 2025, the TFSA contribution limit increased to $7,000, bringing the cumulative contribution room to $102,000.
As the TFSA is tax-sheltered, you can use it to buy and hold quality growth stocks positioned to grow revenue and earnings over time. In this article, I have identified two top Canadian stocks to buy and hold forever in a TFSA.
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Is the TSX stock a good buy?
Valued at a market cap of $26 billion, GFL Environmental (TSX: GFL) has returned close to 200% since its initial public offering in March 2020. GFL is a diversified environmental services company in Canada and the United States. It offers non-hazardous solid waste management, infrastructure, soil remediation, and liquid waste management services.
GFL Environmental expects to close its $8 billion sale of the Environmental Services (ES) business to Apollo Funds and BC Partners, a transaction that will significantly reshape the waste management company’s financial profile.
The ES transaction will yield $6.2 billion in net proceeds, allowing GFL to repay approximately $3.75 billion in debt and pursue up to $2.25 billion in share repurchases. Post-transaction, GFL will maintain a 44% equity stake in the ES business, valued at $1.7 billion.
“This transaction facilitates the acceleration of several of our key financial objectives while preserving the opportunity to participate in expected material upside through our retained equity,” Dovigi noted.
During its fourth-quarter (Q4) earnings call, GFL reported solid performance with a 7% increase in solid waste organic growth, driven by 6% pricing and 2.3% volume growth. It achieved 300 basis points of margin expansion for the second consecutive quarter.
“The quality of our asset base and the strong execution of our committed employees once again drove industry-leading organic growth for the year,” said Patrick Dovigi, founder and chief executive officer (CEO) of GFL.
For 2025, GFL is guiding 6-7% revenue growth and industry-leading 100 basis points of adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin expansion. It expects to deploy $325 million in growth capital, primarily for its Extended Producer Responsibility (EPR) contracts.
Cheif Financial Officer Luke Pelosi highlighted that the de-levered balance sheet would enable GFL to “reignite our M&A strategies that have been tempered over the past 18 months” while maintaining leverage of around three times.
Priced at 49.6 times forward earnings, GFL Environmental trades at a premium. However, the TSX stock is forecast to expand adjusted earnings from $0.84 per share in 2024 to $1.34 per share in 2025 and $1.7 per share in 2026.
Is the Canadian energy stock undervalued?
Total Energy Services (TSX: TOT) reported a record year in 2024 despite facing headwinds in Q4, including extended holiday shutdowns in Canada and adverse weather conditions in Australia.
Its Q4 consolidated revenue increased 15% year over year, with the addition of Saxon drilling operations offsetting lower U.S. drilling and completion activity. However, Q4 EBITDA was $4.7 million lower than the same period in 2023.
“Despite some challenges towards year-end, Total Energy was able to generate significant free cash flow during the fourth quarter that was directed towards a $25.5 million reduction of bank debt,” said Daniel Halyk, president and CEO. It returned $35.2 million to shareholders through dividends and share buybacks in 2024.
Total Energy’s 2025 capital budget of $61.9 million includes $27.6 million for maintenance and $34.3 million for growth opportunities. Its Compression and Process Services segment showed strength with its fabrication backlog at $189 million, unchanged from Q3 but up from $162.8 million a year earlier. Halyk emphasized demand remains robust despite tariff uncertainties.
Analysts expect the TSX energy stock to expand adjusted earnings from $1.53 per share in 2024 to $2.12 per share in 2026. So, priced at 4.44 times forward earnings, TOT stock is undervalued and trades at a 90% discount to consensus price targets.
