Grab these TSX stocks before the holiday rally

As another year draws to a close, stock investors have their eyes and ears wide open for buying opportunities. The market downturn has given way to a bull market S&P/TSX composite index reaching new all-time highs. At the time of writing, the Canadian benchmark index is up 42.4% from its 52-week low.

After several weeks of downward movement, the index is showing signs of life. Now that the holidays are just around the corner, these two things will happen very often: shopping and traveling. Every year, Canadians spend more on Christmas than before. Several companies tend to benefit from the spending spree.

Today I’ll explore two Canadian stocks worth adding to your self-directed investment portfolio to take advantage of the holiday shopping season as an investor.

Shopify

Shopify Inc. (TSX:SHOP) might be one of the best stocks to buy if you want to take advantage of the holiday rush. The Canadian tech giant continues to benefit from growing demand for multi-channel sales platforms. The e-commerce platform provider with a market cap of $295.3 billion allows sellers of all sizes to build a robust online presence. The company makes online shopping easier for end users and improves sales for sellers on its platform.

The stock took a significant dip in recent weeks before staging a strong recovery. At the time of writing, Shopify stock is trading for $226.91 per share. It is up 30.6% from November 18 levels. In addition to the seasonal boost, Shopify is positioning itself for sustainable growth by diversifying its revenue streams. The coming months could yield significant gains for investors who add these to their self-driving portfolios today.

Air Canada

Air Canada (TSX:AC) may not be a stock that many Canadian investors look kindly upon. The once high-flying airline stocks have fallen far from favor, starting with the pandemic recession. While many other companies have recovered to or exceeded pre-pandemic levels, Air Canada stock has struggled to fully recover.

AC shares have not had the best quarters either. Over the past two quarters, profits have lagged by a significant margin. While many may consider this too risky for their stomachs, some investors may want to take advantage of this fear. The holiday season means a lot of travel, both nationally and internationally. The airline could at least see an increase in profits this season.

At the time of writing, Air Canada stock is trading at $18.22 per share. With a decline of 28.8% from its 52-week high, AC at current levels could be a bargain for those with a long-term investment horizon.

Silly takeaway

These two companies have come a long way since their low points during the peak of the pandemic. Air Canada may not have returned to its pre-pandemic highs, but could see a gradual recovery to those levels in the coming months. Shopify has reached that peak and may still have a long way to go before it stagnates. The two stocks may be worth holding for the long term in a tax-free savings account (TFSA), so investors can enjoy tax-free capital growth.