The Tax-Free Savings Account (TFSA) contribution room has increased by $7,000 in 2025, bringing the maximum cumulative contribution limit to $102,000. Introduced in 2009, the TFSA is a registered account that allows Canadians to hold qualified investments and generate tax-free gains for life.
Due to its tax-sheltered status, those with a high-risk appetite can consider owning quality growth stocks in the TFSA and benefit from outsized gains over time. Here are two such TSX stocks you can buy and own in the TFSA with $7,000 right now.
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Is this TSX stock undervalued?
Valued at a market capitalization of $780 million, D2L (TSX:DTOL) offers cloud-based learning software through its core Brightspace platform, serving K-12 schools, higher education institutions, and corporate enterprises worldwide. It offers personalized learning experiences enhanced by artificial intelligence (AI), smart workflows, and automation.
Additional products include Performance+ analytics, Achievement+ reporting tools, Creator+ authoring software, and Course Merchant digital storefront.
D2L is executing strategic initiatives to strengthen its market position in cloud-based learning solutions. Its D2L Wave initiative enhances user experience and platform capabilities to improve learning outcomes. Further, its enhanced go-to-market execution aims to increase market penetration and drive revenue growth.
D2L’s competitive advantages include counter-positioning through specialization in higher education and enterprise markets, often underserved by larger competitors. It benefits from economies of scale, as a growing customer base enables better cost distribution and increased investment in R&D (research and development).
High switching costs lead to strong customer retention, as institutions become deeply integrated with D2L’s platform, encompassing course content, student data, and administrative processes.
Key growth drivers include geographic expansion into new markets with growing online learning demand, continued product innovation, particularly in AI-powered analytics for personalized learning experiences, and strategic partnerships with technology companies and educational institutions.
D2L is capitalizing on the growing corporate demand for upskilling and reskilling solutions, while leveraging government investments in digital learning infrastructure to expand its reach in the public education sector.
Analysts tracking D2L stock expect its revenue to increase from $205 million in fiscal 2025 (ended in January) to $240 million in fiscal 2027.
Comparatively, free cash flow is forecast to improve from $27 million to $43.7 million in this period. If the tech stock is priced at 25 times forward FCF, it should gain around 40% from current levels.
Is this energy stock a good buy?
Another profitable small-cap stock you should consider owning is ACT Energy (TSX:ACX). Valued at a market cap of $175 million, ACT Energy develops innovative energy solutions across transportation, industrial manufacturing, and renewable energy sectors.
It offers advanced battery systems for electric vehicles, energy management software for industrial applications, and solar power storage solutions for residential and commercial use.
Recent developments include accelerating Combined Heat and Power (CHP) system deployment to increase efficiency and reduce emissions, expanding renewable energy solutions, and investing in smart grid technologies.
ACT’s competitive advantages stem from counter-positioning in niche markets, reducing unit costs, high switching costs that create customer loyalty, and network effects that strengthen its market position.
Key growth drivers include expanding energy storage solutions driven by the growth of renewable energy, developing advanced battery technologies such as solid-state and flow batteries, strategic partnerships, penetrating emerging markets with growing energy demand, and focusing on smart grid technologies.
It also explores new products, including wireless charging systems and scalable grid-scale storage solutions, positioning it to capitalize on the global energy transition and electrification trends.
Analysts tracking ACX stock expect free cash flow to increase from $17 million in 2024 to $76 million in 2027. In this period, its FCF margin is estimated to expand from 3% to 14.1%. If the TSX stock is priced at eight times forward FCF, it should gain around 250% from current levels.
