You don’t need a considerable amount of money to start investing in growth stocks. Even with a modest amount of $50, you can buy shares of fundamentally strong Canadian stocks with solid growth potential.
The important thing is not to buy stocks just because they’re cheap. Instead, look for businesses with strong financials, reliable business models, and growth potential. These Canadian stocks are more likely to offer above-average returns.
With that in mind, here are three legit TSX growth stocks to buy for less than $50.
MDA Space stock
MDA Space (TSX:MDA) is a legit growth stock to buy for less than $50. It is witnessing growing demand for its advanced space solutions, which is driving its top line at a solid pace. Thanks to the strong demand environment and its leadership in next-generation digital satellite systems, robotics, and advanced geointelligence solutions, shares of this space technology company have increased by over 387% in the last three years.
Recently, the shares of MDA Space dipped after EchoStar unexpectedly cancelled a significant satellite contract and sold its spectrum licenses to SpaceX. While the news briefly rattled investors, it also created an opportunity to buy into MDA’s long-term growth story at a discount.
Even without the EchoStar deal, MDA has $4.6 billion order backlog, setting the stage for continued revenue growth in the coming years. Its core divisions continue to perform strongly and are likely to benefit from secular tailwinds. As global spending on satellite communications, defence, and earth observation accelerates, MDA’s diversified technology portfolio and solid balance sheet position it well to capitalize on the rapidly expanding space economy.
5N Plus
5N Plus (TSX:VNP) is an attractive growth stock to buy under $50. The Canadian small-cap company offers specialty semiconductors and performance materials with applications in several high-growth sectors, including renewable energy, to advance imaging and healthcare. The solid demand for its products has enabled the company to deliver solid financials, which is reflected in its share price. 5N Plus stock is up about 138% year to date. Moreover, it has increased by approximately 953% over the past three years, reflecting a compound annual growth rate (CAGR) of around 119%.
The momentum in 5N Plus’s business appears far from over. Surging demand from terrestrial renewable energy and space solar power applications is driving steady growth, while its global presence and efficient sourcing continue to support margins. As the leading supplier of ultra-high-purity semiconductor materials outside China, 5N Plus also holds a key competitive advantage.
Overall, strong demand, a growing backlog, a focus on high-growth markets, and efficient sourcing make 5N Plus a compelling long-term stock under $50.
SECURE Waste Infrastructure stock
SECURE Waste Infrastructure (TSX:SES) is another compelling stock to buy under $50. The company is experiencing strong demand for its comprehensive waste management services, which encompass processing, recycling, and disposal. Moreover, its well-established energy infrastructure network and high-entry-barrier assets position it strongly for long-term growth.
Given the strong demand and financials, SES stock has climbed about 303% in the last three years. Further, it has room for significant growth in the long run.
Despite the challenges from U.S. tariffs, SECURE’s fundamentals remain resilient. The company is targeting tariff-free markets, tightening costs, and enhancing profitability. Furthermore, a significant portion of its business stems from production-related, recurring waste streams, which generate a dependable cash flow even in uncertain conditions.
With a solid balance sheet, contract renewals, and strong customer relationships, SECURE is well-positioned to deliver steady growth. Moreover, as oil and gas production increases and environmental regulations tighten, demand for its specialized disposal services will increase, providing a boost to its financials and share price.
