The Tax-Free Financial savings Account (TFSA) is among the greatest, if not one of the best, autos for creating long-term revenue for buyers. You get tax-free withdrawals at any time, along with your contribution limits rising every yr. So, by the point you attain retirement, you possibly can have an entire host of investments in there which have slowly however absolutely added up over time.

Nonetheless, that doesn’t imply you should purchase all the things and something. In truth, there are a couple of shares, particularly tech shares, that look nice however are nonetheless sitting on my watchlist. Whereas I do need to choose these up finally, it must be the best time, on the proper worth. So, let’s have a look.

CSU

First up is Constellation Software program (TSX:CSU). CSU has been a long-time winner, however not too long ago shares have come down from all-time highs. The tech inventory offers a sturdy technique of buying area of interest software program companies. It holds excessive money conversion, a repeatable acquisition mannequin, and it has confirmed to supply regular income progress.

In truth, most not too long ago, its quarter-over-quarter income elevated 15% when together with acquisitions. What’s extra, it now holds $10.7 billion in income and robust money flows. The issue then? All that comes at a worth. Proper now, its trailing price-to-earnings (P/E) ratio is extraordinarily excessive at over 100 P/E, as internet revenue has come down. Its ahead P/E sits at about 27, with the price-to-sales (P/S) ratio at six. And with a dividend at simply 0.13%, it’s not precisely wanting too beneficial at this second.

With that wealthy valuation, buyers will need to contemplate maybe nibbling away at an funding throughout dips. The present worth displays numerous future progress, so if progress slows, the inventory might drop. So, whereas this stays a high-quality, core holding for long-term buyers, it’s merely not a cut price … but.

CLS

Subsequent up, we’ve got tech inventory Celestica (TSX:CLS), which has additionally proven outstanding promise. The corporate offers electronics manufacturing companies and supply-chain options, a behind-the-scenes operator that’s now offering big help to the synthetic intelligence (AI) neighborhood. This comes from the {hardware} supplied to help knowledge centre infrastructure, constructing the servers and techniques that AI chips run on.

And the tech inventory has been doing extremely effectively. Its trailing income is now at US$10.6 billion, with latest quarterly income up 21% yr over yr and adjusted earnings per share (EPS) enhancing. In truth, the tech inventory elevated its 2025 steerage! So, with publicity to rising AI and enhancing margins, it appears to be like strong, proper?

True, however there are some points. Once more, it’s costly trailing at P/E of 55.7 and ahead 38.5. Moreover, it’s traditionally a cyclical enterprise tied to demand, tariffs, and capital spending. These could make outcomes swing, so with valuation so excessive from anticipated demand, any shifts might convey shares sliding. And with shares already up round 400% within the final yr, future progress already appears to be like priced in. Ought to margins enhance, nevertheless, this could possibly be a strong long-term purchase. Simply don’t go chasing massive strikes.

BB

Then we’ve got BlackBerry (TSX:BB), which appears to be like like a strong tech inventory simply ready for the best second. This tech inventory continues to be going by means of its transition from smartphone creator to software program and safety-critical techniques (QNX) operator and safe communication segments. These have all proven progress and robust gross margins, with QNX alone working at a gross margin of 81% at writing.

Nonetheless, buyers aren’t satisfied fairly but. The tech inventory has a smaller $3.6 billion market cap, returning a modest $533 million trailing income base. In the meantime, P/S is excessive at about 5, the trailing P/E is considerably excessive, and the ahead P/E is at 44.

What buyers will actually need to watch is the potential upside if software program income scales up and annual recurring income stabilizes and grows. For now, money era continues to be modest, so it stays a extremely unstable tech inventory till there’s firmer proof of sustained revenue and money circulate.

Backside line

If you happen to’re desirous about these tech shares like I’m, there are some things to observe for now. So, I’ll be ready for the best alternative for every of those tech shares.