The Tax-Free Savings Account (TFSA) is a popular registered account in Canada. The TFSA was introduced in 2009 and enables Canadians to generate tax-free gains by holding a variety of qualified investments.
In this article, I have identified two quality TSX stocks you can hold in a TFSA that should help you deliver outsized gains over time.
Is this TSX mining stock undervalued?
Ivanhoe Mines (TSX:IVN) is a Canadian mining company focused on developing and operating mineral projects across Africa. It mines copper, platinum group metals, zinc, and other precious metals through its flagship Kamoa-Kakula Copper Complex in the Democratic Republic of Congo, the Platreef project in South Africa, and the Kipushi Zinc mine operations.
Ivanhoe Mines reported exceptional first-quarter results, achieving record revenue of $973 million and EBITDA (earnings before interest, tax, depreciation, and amortization) of $585 million at its flagship Kamoa-Kakula copper complex in the Democratic Republic of Congo.
Ivanhoe has cemented its position among the world’s top three copper producers, with April production reaching a milestone of 50,246 tonnes of copper.
The operational turnaround has been dramatic, with the complex doubling its imported hydropower capacity from 50 to 100 megawatts in the first quarter (Q1), effectively eliminating reliance on expensive diesel generators. This power stability enabled annualized production rates exceeding 600,000 tonnes, positioning Kamoa-Kakula for sustained growth.
Ivanhoe’s growth trajectory appears robust with multiple catalysts. The $1.1 billion copper smelter, Africa’s largest, is scheduled to begin operations in May, which is expected to reduce logistics costs and improve margins. Project 95, currently 30% complete, is expected to add 30,000 tonnes of annual copper production starting in 2026, with minimal additional mining costs.
Ivanhoe also announced ambitious expansion plans targeting over 700,000 tonnes of annual copper production through phase-four development. Meanwhile, Kipushi zinc mine is approaching steady-state operations, and the Platreef precious metals project in South Africa reached the reef zone, marking a significant milestone toward commercial production.
Analysts tracking the TSX mining stock expect adjusted earnings per share to expand from $0.32 in 2024 to $0.83 in 2028. If the mining stock is priced at 20 times forward earnings, which is reasonable, given its growth estimates, it will trade around $16.6 in early 2028, indicating an upside potential of over 50% from current levels.
Is this mid-cap stock undervalued?
Valued at a market cap of $4.1 billion, Bausch + Lomb (TSX:BLCO) is a global eye health company operating through three segments: Vision Care (contact lenses, lens care products, eye vitamins), Pharmaceuticals (prescription treatments for glaucoma, dry eye, retinal diseases), and Surgical (cataract surgery equipment, intraocular lenses, medical devices).
Bausch + Lomb delivered solid Q1 results with 5% constant currency revenue growth to $1.137 billion despite facing operational challenges, including a voluntary recall of its enVista intraocular lenses and evolving tariff headwinds.
The company’s diversified portfolio demonstrated resilience across all three segments. Vision Care experienced 5% growth, driven by strong performance in Daily SiHy contact lenses (42% growth) and the expanding Blink dry eye franchise (84% growth).
The Surgical segment posted 11% growth, led by premium intraocular lenses (IOLs), while Pharmaceuticals achieved 1% growth, with standout performance from Miebo, which delivered over 100% year-over-year growth.
The enVista IOL recall, triggered by toxic anterior segment syndrome signals, resulted in an estimated $55 million revenue impact and $65 million EBITDA headwind for 2025. However, management’s swift response and transparent handling of the situation earned customer trust, with the product returning to market within a month.
Tariff concerns present another near-term challenge, with a potential 120-basis-point impact on EBITDA margins. Its global manufacturing footprint provides mitigation opportunities through inventory management, production shifts, and pricing adjustments.
Management has raised its full-year revenue guidance to $5 billion and $5.1 billion while maintaining a focus on innovation. The pipeline includes first-of-its-kind biomimetic contact lenses and dual-action dry eye therapeutics, which are positioned to drive future growth.
Analysts expect the TSX stock to increase earnings from $0.63 per share in 2024 to $1.79 per share in 2029. If it is priced at 20 times earnings, BLCO stock will trade around $35 in early 2029, up from its current price of $16.
