I’d Aim for $1 Million Buying Just These 3 TSX Stocks

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the S&P/TSX Composite Index rose 55 points in early afternoon trading on Monday, July 24. Some of the top-performing sectors included energy, base metals, and financials. Today, I want to explore how investors can hope to grow their portfolio by $1 million by targeting TSX stocks with high growth potential in the summer of 2023. Let’s dive in.

Here’s why I’m targeting this TSX stock in the artificial intelligence space

Coveo Solutions (TSX:CVO) is a Montreal-based company that provides solutions powered by artificial intelligence (AI). Investors should seek exposure to this space as there is a gold rush in AI right now. Fortune Business Insights recently valued the global AI market at US$ 428 billion by 2022. The report projects that the market will grow to US$ 512 billion by 2030. That will represent a compound annual growth rate (CAGR) of 16% over the projected period.

Shares of this TSX stock are up 24% month over month at the time of this writing. That pushed the stock into positive territory so far in 2023. The company released its fourth quarter (Q4) and full-year fiscal 2023 earnings on May 30. It posted total revenue growth of 14% to $29.1 million and SaaS Subscription revenue growth of 17% to $27.1 million. For the full year, Coveo Solutions achieved total revenue growth of 30% to $112 million.

This TSX stock is trading in favorable value territory compared to its industry peers at the time of this writing. In addition, Coveo Solutions had a nice balance sheet in late July. This TSX stock has the potential to explode, as investors are flocking to the AI space right now.

This growth stock is undervalued as of late July 2023

Aritzia (TSX:ATZ) is a Vancouver-based company that designs and markets apparel and accessories for women in the United States and Canada. Its shares are down 25% per month at the time of writing. The TSX stock suffered a 45% retreat in the year-to-date period. Investors can see more of its recent performance using the interactive price chart below.

The company released its Q1 fiscal 2024 earnings on July 11. Net income rose 13% year over year to $462 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization; this metric aims to provide a clearer picture of a company’s profitability. Aritzia posted adjusted EBITDA of $31.6 million in Q1 – down 54% compared to last year.

The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. Aritzia finally has an RSI of 25, placing this TSX stock at technically oversold levels. It also has an attractive price-to-earnings ratio of 17. This TSX stock is undervalued and boasts strong growth potential going forward.

Another TSX stock with high growth potential that I’m looking to buy today

Nuvei (TSX:NVEI) is the third and final TSX stock I’m looking at to capture its growth potential in the latter half of July 2023. This Montreal-based company provides payment technology solutions to merchants and partners in North America, Europe, and around the world. Shares of this TSX stock have jumped 25% year to date in 2023.

The payment technology solutions market is set for rapid growth in the coming years. In Q1 2023, Nuvei posted revenue growth of 20% to $256 million. Adjusted EBITDA increased to $96.3 million compared to $91.6 million last year. This company is on track for very strong long-haul revenue growth.