Almost halfway into 2025, the ups and downs in the S&P/TSX Composite Index reflect the stock market volatility Canadian investors have seen so far. After taking a steep dive of over 11% between April 2 and April 8, 2025, the benchmark index for the Canadian stock market is regaining momentum. As of this writing, the market is up by over 15% from its April 8th low.
Many Canadian investors wait on the sidelines and wait for things to calm down before investing in the stock market, especially during bear market conditions. Savvier Canadians with a long-term investment strategy don’t let the fear of short-term losses cloud their judgment. As the market picks up pace again, it’s as good a time as any to shore up your Tax-Free Savings Account (TFSA) with value stocks that can deliver substantial and tax-free wealth growth.
Most stocks trading on the TSX have recovered to better valuations amid the rally. Some stocks are getting there, and others are trailing significantly behind the stock market. Today, I will discuss one stock that is still trailing and one that’s already regained good momentum on the stock market that you should consider investing in right now.
Cargojet
Cargojet (TSX:CJT) is a $1.48 billion market-cap Canadian stock headquartered in Mississauga. The company operates a scheduled air cargo business with domestic operations and serves several international markets. It also offers full aircraft charters, with multiple cargo customers between the U.S. and Bermuda, Canada and the U.K., Germany, and Canada and Mexico.
Having run for over 20 years, the company has established itself as the premier cargo airline. However, the chart above shows that the stock has struggled for most of 2025 so far. Broader geopolitical problems, trade tensions, and other headwinds might lead to more declines in share prices in the next few weeks, but the weakness can only last so long. Stock markets are inherently cyclical, and recent developments on the trade tensions front might provide CJT stock the boost it needs to recover.
Aritzia
Aritzia (TSX:ATZ) is a Vancouver-headquartered $7.63 billion market-cap clothing retail company that’s seen tough times in recent weeks, but things seem to be improving. As of this writing, ATZ stock trades for $66.29 per share. Down by 9.73% from its 52-week high, the stock is up by almost 108% from its 52-week low.
The retailer has come a long way since its humble beginnings. It is one of the bigger names in the North American apparel industry, especially among younger shoppers. The company is doing well in the U.S., where its fourth quarter of fiscal 2025 saw the company report a 31.3% jump in year-over-year revenue. The company’s earnings increased by 311.6% in the same period.
Foolish takeaway
The TFSA can be an excellent tool for savvy investors to leverage the tax-sheltered status of the account as an investment vehicle. Any earnings you make on holdings in the account can grow without incurring taxes, including on interest, dividends, and capital gains. You can make a self-directed portfolio that lines up with your retirement plan or any other long-term financial goals.
It is important to use the contribution room carefully to ensure you maximize the account’s potential. To this end, CJT stock and ATZ stock can be solid investments to consider.
