Building a $7,000 TFSA Position With Growth in Mind

TFSA investors can generate significant tax-free gains by taking positions in these fundamentally strong TSX stocks.

Investing in high-quality TSX stocks via a Tax-Free Savings Account (TFSA) can help build a portfolio that can deliver above-average returns. Using the TFSA’s tax-free advantage, investors can maximize their returns over time and accelerate portfolio growth.

As for 2025, Canadians have an additional $7,000 in TFSA contribution room to put to work. With that in mind, here are a few fundamentally strong Canadian stocks worth considering for growth.

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.

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TerraVest Industries

TFSA investors seeking growth could consider TerraVest Industries (TSX: TVK) stock. TerraVest operates a diverse group of manufacturing businesses, primarily serving domestic markets. This local focus provides it with a degree of protection from international trade uncertainties, such as tariffs, thereby adding stability to your TFSA portfolio.

As its business continues to perform well, TerraVest stock has delivered a remarkable return of nearly 618% over the past three years. Despite that impressive run, TerraVest stock has more upside potential. The company continues to invest strategically in improving manufacturing efficiency and expanding its product lineup. These efforts, supported by a healthy balance sheet, have positioned TerraVest to maintain and accelerate its growth trajectory.

Moreover, its acquisition of L.B.T. Inc. will accelerate its growth by strengthening its position in the tank trailer market. Further, with access to a new credit facility, TerraVest is well-equipped to continue pursuing similar growth-focused acquisitions.

In summary, TerraVest is well-positioned to expand rapidly and create significant value for its shareholders.

Loblaw stock

Loblaw (TSX: L) is one of the top Canadian stocks to add to your TFSA portfolio for stability and growth. Canada’s top food and pharmacy retailer has a defensive business model that performs well in all economic climates, offering stability.

Besides stability, this blue-chip company has delivered above-average returns thanks to its consistent same-store sales growth, solid earnings, and robust cash flow generation. Over the past three years, shares of Loblaw have increased at a compound annual growth rate (CAGR) of about 25%, resulting in a total gain of approximately 96%.

Loblaw’s strategy to expand its hard discount stores is gaining traction and will likely support its top-line growth. Further, its focus on competitive pricing, wide product selection, and expansion of private-label brands will drive customer loyalty and boost traffic.

Loblaw is poised to attract more consumers by strengthening its omnichannel platform and leveraging its loyalty program. Operationally, Loblaw is working to future-proof its business by modernizing its supply chain and embracing automation. These efforts are expected to streamline operations, reduce costs, and improve margins.

goeasy stock

goeasy (TSX: GSY) can be a solid addition to your TFSA portfolio. This subprime lender is growing its top and bottom lines at a solid pace. Moreover, it has delivered significant capital gains and consistently paid higher dividends, creating substantial wealth for its shareholders.

goeasy has managed to grow its revenue at a CAGR of over 19%. At the same time, its earnings compounded at nearly 26% annually. Thanks to this growth, goeasy stock has increased by over 211% in the past five years.

Notably, goeasy stock is still trading at a discount, reflecting a forward price-to-earnings ratio of approximately eight. This makes it a compelling value pick. The company is poised to deliver double-digit earnings growth led by higher loan originations, diversified funding sources, solid underwriting capabilities, and operating efficiency.

goeasy’s growing earnings base and low valuation will support its share price. Moreover, it will continue to enhance its shareholder value through higher dividend payments.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends TerraVest Industries. The Motley Fool has a disclosure policy.

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