The Tax-Free Savings Account (TFSA) is the ideal account to hold stocks that you expect to multiply and grow many times larger over the coming years. Since you are safe from all income tax inside the TFSA, you want to put stocks that you expect to provide the biggest gains.
You don’t want to pay any tax on a capital gain that is worth many multiples of your capital. In terms of investing, using your TFSA to maximize capital gains is one of the best uses of the account.
If you are looking for some stocks that have the potential to multiply many times over, here are two to contemplate right now.
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Aritzia: A great stock for the long run in a TFSA
The first stock at the top of my TFSA list is Aritzia (TSX: ATZ). This $16 billion stock has become renowned across Canada and the United States for its attractive “Everyday Luxury” brand of women’s clothing.
Aritzia continues to elevate its consumer experience. Its recently launched app is helping boost sales. Likewise, larger, modern boutiques that even have in-store cafés are making Aritiza a shopping destination. As it grows its boutique count in the U.S., its online sales gather greater momentum as well.
In 2025, Aritzia grew net revenue by 35% and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) by 59%! It is aiming for over 18% revenue growth in 2026.
However, given strong consumer demand, it could exceed those targets. It has yet to penetrate international markets, so there are still considerable growth opportunities in the years to come.
Aritzia’s stock is up 121% in the past year and 370% in the past five years. It is by no means cheap at today’s price. However, its growth profile and outlook have considerably improved in that time.
Aritzia’s stock can be volatile, especially based on the macro-economy. I would only create a starter position today. However, I would be interested in adding more on pullbacks and market volatility.
Constellation Software: A top compounder for a TFSA
Constellation Software (TSX: CSU) has been a major long-term winner for shareholders. Its stock is up 14,821% since it was publicly listed in 2006. However, recent stock performance has been painful. Its stock is down 44% in the past year.
This is a great opportunity for TFSA investors. You get to buy one of Canada’s best companies at a 44% discount. Recent results have been nothing less than excellent. It continues to deploy capital into new software acquisitions at a strong cadence. Constellation just delivered a quarter of +20% revenue growth. Free cash flow is pouring in, and its balance sheet is strong.
Even though its longstanding CEO, Mark Leonard, has resigned (due to health reasons), the company is in great hands with Mark Miller, who has been with the company for over 20 years.
The best part is that you can buy this stock for 12 times free cash flow. With an 8% cash flow yield, it really is a bargain price for a great company. While Constellation may not be in vogue today, eventually the stock will catch up to its results.
