The top TSX stocks have transformed modest investments into substantial long-term wealth over time. Many of these stocks are supported by strong fundamentals, solid leadership, and resilient business models that continue to perform well through various market conditions. Take Shopify, for example. Its stock has soared by more than 5,773% over the past decade, rewarding shareholders with exceptional gains.
When such high-quality stocks are held within a Tax-Free Savings Account (TFSA), the potential for wealth creation becomes even greater. The TFSA’s biggest advantage is its tax-free growth. Any capital gains, dividends, or interest earned inside the account are completely sheltered from taxes. This means investors keep every dollar of profit and can reinvest it to accelerate compounding over time.
Combining the strength of leading Canadian businesses with the TFSA’s tax benefits can set investors up for significant long-term gains. With that in mind, let’s take a look at two compelling TSX stocks worth buying and holding in a TFSA with an investment of $3,000 right now.
Source: Getty Images
TFSA Stock #1: Aritzia
Shares of Canadian fashion retailer Aritzia (TSX:ATZ) could be a compelling addition to your TFSA portfolio. Its exclusive in-house brands, trend-savvy collections, digital expansion, and the opening of new boutiques have enabled it to consistently deliver strong financial results, which have transformed into solid returns for shareholders.
Aritzia’s net revenue has surged at a compound annual growth rate (CAGR) of 23% since fiscal 2020. Its top line benefited from the solid performance of the e-commerce business, which increased at a CAGR of 33%. Moreover, cost management and fewer markdowns have boosted profitability, with its earnings climbing at a CAGR of 19% over the past five years. Thanks to its solid financials, Aritzia shares have soared more than 320% in the same period, delivering a 33% average annualized return.
Looking ahead, Aritzia’s growth story is far from over. The company is expanding its U.S. footprint, which is expected to boost its sales. With plans to add up to 10 new American stores annually through fiscal 2027, Aritzia is strengthening brand visibility while fueling demand for both retail and online sales.
Its digital business will likely sustain momentum, as enhanced convenience and targeted marketing are expected to accelerate online sales in Canada and the U.S.
Management projects 15–17% annual revenue growth through fiscal 2027, supported by boutique expansion in the U.S. and e-commerce strength. Moreover, leverage from high sales and efficiencies will cushion its bottom line and drive its share price higher.
TFSA Stock #2: 5N Plus
5N Plus (TSX:VNP) is a solid long-term stock to add to your portfolio. The company specializes in producing high-performance materials and specialty semiconductors. These critical components are utilized across various industries, including renewable energy, space, security, pharmaceuticals, medical imaging, and industrial applications. With many of these markets experiencing strong tailwinds, demand for 5N Plus’s products continues to accelerate.
Recent performance highlights that the company is executing well. Revenue growth has been impressive, driven primarily by surging demand in the terrestrial renewable energy sector and increasing sales in the space solar power segment. Even within its Performance Materials division, where volumes have declined, strong pricing for bismuth-based products has helped protect profitability. Thanks to its solid financials, 5N Plus stock has risen at a CAGR of nearly 55% in the last five years, generating total capital gains exceeding 789%.
5N Plus’s growth momentum will likely be sustained. Its Specialty Semiconductors segment is expected to benefit from sustained demand across both terrestrial and space-based solar markets. Moreover, 5N Plus is expanding its solar cell production capacity, allowing it to serve commercial, civil, and defence clients with greater efficiency and minimal added costs. Its leadership in high-purity materials, particularly outside China, also offers a competitive edge in an era of global supply chain uncertainty and shifting trade dynamics.
With strong fundamentals and exposure to multiple high-growth sectors, 5N Plus is a compelling addition to a TFSA portfolio.
