Over time, several TSX stocks have shown their ability to generate substantial long-term wealth for investors. These businesses typically share key characteristics, including strong fundamentals, solid management teams, and a proven ability to deliver consistent growth across varying economic conditions.
Holding such companies within a Tax-Free Savings Account (TFSA) can further enhance overall returns. A TFSA allows capital gains and dividend income to accumulate tax-free, enabling investors to retain the full value of their returns. This tax-efficient structure supports more effective reinvestment, accelerating the compounding process over time.
Against this backdrop, here is a TSX stock to buy and hold forever, especially in a TFSA.
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Top TSX stock to buy and hold in a TFSA
TFSA investors looking for a top TSX stock to buy and hold forever could consider Aritzia (TSX:ATZ). The Canadian fashion retailer has shown consistent operational and financial strength, supported by broad-based demand for its products and continued expansion across both physical retail and digital channels. Moreover, new styles to maintain freshness in its assortment and exclusive brands support brand loyalty.
Since fiscal 2020, Aritzia has delivered robust financial performance, with net revenue increasing at a compound annual growth rate (CAGR) of 23%. Over the same period, adjusted net income has grown at a CAGR of 19%, reflecting both top-line momentum and disciplined cost management. The company’s digital segment has been a strong contributor, with e-commerce revenue expanding at an annualized rate of approximately 33%, reflecting the effectiveness of its multi-channel strategy.
The sustained growth has translated into significant shareholder returns. Over the past five years, Aritzia’s stock has appreciated at a CAGR exceeding 30%, resulting in total capital gains of 278%. This performance substantially exceeds that of the broader Canadian benchmark index, which has risen by approximately 70.3% during the same timeframe.
Looking ahead, the momentum in Aritzia’s business will likely sustain, supporting its share price rally.
Aritzia positioned for strong growth
Aritzia appears well-positioned for sustained growth, supported by continued demand for its exclusive product offerings. This demand is expected to drive double-digit comparable sales growth, while the contribution from newly opened boutiques should provide additional momentum to overall revenue expansion.
The fashion retailer has expanded its boutique network by approximately 25% across Canada and the U.S. in the last 12 months. With 71 boutiques currently operating in the U.S., Aritzia retains a substantial growth runway in this market. Management has identified the potential to exceed 150 U.S. locations and plans to open at least 10 new boutiques annually through fiscal 2027, alongside repositioning three to five locations each year. These initiatives are expected to increase the total boutique count to more than 150 and expand retail square footage by up to 60% over the same period.
In addition, Aritzia’s e-commerce channel continues to perform strongly. Ongoing investments in digital capabilities, including enhancements to its international platform and mobile shopping application, are supporting this momentum and strengthening customer engagement across markets.
Aritzia projects net revenue growth at a CAGR of 15–17% through fiscal 2027, with steady profitability growth. Although tariffs and elevated logistics costs may create near-term margin pressure, disciplined inventory management, operating leverage, and strong full-price selling are expected to mitigate these challenges.
With strong demand, continued boutique expansion, strength in the digital channel, and growing brand awareness, Aritzia remains positioned to deliver meaningful long-term returns.
