TFSA: Invest in These 3 Stocks for a Real Shot at $1 Million

Canadians should look to snatch up stocks with high potential like Air Canada (TSX:AC) to put in their TFSA in 2023 and beyond.

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The S&P/TSX Composite Index was down marginally in late-morning trading on Thursday, June 15. Battery metals and base metals proved to be the two strongest sectors on the TSX at the time of this writing. Meanwhile, sectors like health care and information technology took a hit. Investors on the hunt for growth might want to target these top equities that could give you a very real shot at $1 million in a Tax-Free Savings Account (TFSA). Let’s jump in.

This is the first exciting stock I’d look to add to your TFSA in the middle of June

ATS (TSX:ATS) is the first stock I’d look to snatch up in our TFSA in the late morning. This Cambridge-based company constructs systems for the medical devices, pharmaceuticals, telecommunications, semiconductor, fibre optics, automotive, computers, solar energy, and consumer products industries. Shares of ATS were up 2.4% month over month as of late-morning trading on June 15. The stock is now up 34% so far in 2023.

Fortune Business Insights recently valued the global industrial automation market at US$191 billion in 2021. The same report projected that this sector would grow to US$395 billion by 2039. That would represent a compound annual growth rate (CAGR) of 9.8% during the forecast period.

In the fourth quarter of fiscal 2023, ATS posted revenue growth of 21% to $730 million. Meanwhile, adjusted basic earnings per share (EPS) rose to $0.73 compared to $0.60 in the previous year. For the year-to-date period, the company delivered revenue growth of 18% to $2.57 billion while adjusted EPS rose 3% to $2.37.

This TSX stock is geared up for strong earnings growth going forward. ATS has plenty of room to run in the months and years ahead.

Here’s a top stock that could make you a fortune in the years ahead

Pet Valu (TSX:PET) is a top Canadian stock that I have consistently recommended in recent weeks. This Markham-based company is engaged in the retail and wholesale of pet foods, treats, toys, apparel, and accessories in Canada. Its shares have dropped 11% over the past month. Pet Valu stock has plunged 21% in the year-to-date period.

The pet care market is well positioned to deliver strong overall growth over the next decade. Pet ownership rates exploded during the pandemic. In the first quarter of fiscal 2023, Pet Valu posted system-wide sales growth of 18% to $339 million. Meanwhile, revenue jumped 17% to $250 million. Looking ahead, Pet Valu expects revenue between $1.05 billion and $1.07 billion in fiscal 2023. It also expects same-store sales growth between 7% and 10% and 40-50 new store openings across Canada.

Shares of Pet Valu currently possess a solid price-to-earnings ratio of 22. It offers a quarterly dividend of $0.10 per share, which represents a modest 1.3% yield. Pet Valu is a terrific target for TFSA investors as we approach the summer season.

TFSA investors: Air Canada stock erupted in the 2010s, and it could do it again

Air Canada (TSX:AC) proved to be one of the biggest stories on the TSX Index over the course of the 2010s. This growth stock dipped below the $1 mark at one point in the early part of last decade. However, by the end of the 2010s, Air Canada had established itself as a heavy hitter in the airline space and its stock was approaching the $50 price mark. The stock has been hit hard by the COVID-19 pandemic, but there are positive signs of recovery in the airline space. Its shares have climbed 23% so far in 2023. This is still a stock I’d love to stash in my TFSA right now.

In the first quarter of fiscal 2023, Air Canada saw passenger revenues shoot up 53% to $4.08 billion. Meanwhile, operating revenues shot up 90% to $4.88 billion. Air Canada is projecting adjusted earnings before interest, taxes, depreciation, and amortization between $3.5 billion and $4.0 billion for the full year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Pet Valu. The Motley Fool has a disclosure policy.

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