If you’re one of those stock investors who witnessed the recent market selloff and have some cash in your TFSA (tax-free savings account), now could be the perfect time for you to act. After consistently falling for months, some tech stocks with strong growth prospects have started showcasing signs of a sharp recovery. While the Canadian and American central banks implement aggressive policy measures to tame inflation, better-than-expected tech earnings are boosting investor confidence this month. This is leading to a sector-wide rally in tech. With this in mind, I’m going to highlight two of the best tech stocks TFSA investors can buy now. These shares have the potential to triple your TFSA cash in five years or less.
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BlackBerry stock
BlackBerry (TSX:BB)(NYSE:BB) has been one of the most undervalued tech stocks on the Canadian stock market in recent years. This Waterloo-based tech company currently has a market cap of about $4.6 billion and its stock trades at $7.93 per share with 34% year-to-date losses.
In the last few years, BlackBerry has showcased potential to become one of the biggest global players in the enterprise security solutions segment. Additionally, the company is continuing to accelerate its efforts to develop advanced technological solutions for the automotive industry based on artificial intelligence and machine learning.
Along with the consistently rising popularity of its QNX operating system, BB is developing its intelligent vehicle data platform, IVY — a scalable, cloud-based connected software platform that gives developers and automakers a reliable and secure way to share vehicle sensor data. The Canadian tech company has already started publicly demonstrating the true potential of the IVY platform — attracting positive feedback from many of the largest global automakers.
I expect IVY will immensely accelerate BB’s financial growth in the coming years and trigger a long-term rally in its stock. It’s already started to rally in July, so TFSA investors may want to consider buying this tech stock right now. Month-to-date, BB stock is up more than 14%.
Shopify stock
Shopify (TSX:SHOP)(NYSE:SHOP) stock is well-known for consistently delivering outstanding positive returns each year. After growth of more than 2,900% over the previous five years, this Canadian tech stock has experienced a 72% value erosion in 2022. This is due in part to lowered growth in demand for services and solutions combined with rising expenses for efforts to expand the business internationally. This value erosion has made it one of the worst performing TSX Composite components for the year. On a positive note, the company’s efforts to achieve higher growth seem to be helping it regain investor confidence this month, as its shares have recovered by nearly 24% in July so far.
The growth trend for Shopify’s financials is likely to continue, and the tech company is expected to register strong double-digit sales growth in 2022 despite subsiding pandemic-driven surges in demand. Moreover, the e-commerce platform provider’s recent tie-ups with American tech giants like Google and Twitter are expanding its portfolio of innovative services for its merchants.
These efforts also strengthen the company’s long-term financial growth outlook by attracting more merchants to its platform. If you missed buying Shopify stock after its listing on the TSX in 2015, it could be the right time to buy this high-growth tech stock at a bargain, as it has the potential to triple your TFSA money within just a few years.
