4 TSX Stocks Under $50 With Big Wealth Potential

These Canadian companies have solid underlying fundamentals and businesses with significant growth potential in the long term.

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Key Points

  • Buying stocks solely for their low price is risky. Investors should focus on a company’s fundamentals and growth potential.
  • Several TSX stocks under $50 offer strong long-term growth prospects supported by robust operations and strategic positioning.
  • These companies benefit from high-demand sectors like waste management, critical infrastructure, semiconductors, and space technology, with solid backlogs and scalable business models driving potential gains.

Investing in stocks just because they appear cheap is not a winning strategy. A low price tag alone doesn’t make a stock a good deal. One should look at the underlying fundamentals of the business and growth potential.

Thus, for investors aiming to build long-term wealth without tying up too much capital upfront, here are four TSX stocks under $50 with significant growth potential.

Under $50 stock#1: SECURE Waste Infrastructure

SECURE Waste Infrastructure (TSX:SES) stock, trading below $50, offers significant growth potential as a leader in waste management and energy infrastructure. Its extensive network of over 80 facilities across Western Canada and North Dakota positions it to benefit from rising oil and gas activity, driving greater demand for waste processing and recycling.

With high-barrier assets, scalable operations, and increasing environmental regulations, SECURE is well-placed for sustained EBITDA growth through 2026 and beyond. The company’s long-term, contracted infrastructure projects generate stable cash flows, while ongoing network optimization enhances efficiency and profitability. Further, its strong balance sheet and disciplined capital strategy help SECURE to deliver the reliability of essential services along with significant growth potential.

Under $50 stock#2: Bird Construction

Bird Construction (TSX:BDT) is another compelling long-term TSX stock to buy under $50. The construction and maintenance firm has seen impressive gains and still offers meaningful upside potential. Its diversified operations, geographic expansion, and collaborative contracting models help manage risk while delivering stable results. Most of its business comes from low- to medium-risk projects, ensuring dependable earnings.

With a focus on essential sectors like defence, power, and transportation, Bird is positioned to benefit from long-term infrastructure trends. The company’s robust $4.6 billion backlog and strong balance sheet support future growth and strategic acquisitions. Moreover, its recent acquisition of Fraser River Pile & Dredge enhances its capabilities in marine infrastructure, positioning it well to capitalize on the government’s push for nation-building projects. Overall, Bird Construction is poised to deliver notable gains in the long run.

Under $50 stock#3: 5N Plus

5N Plus (TSX:VNP) is a top growth stock to buy under $50. This small-cap company will continue to benefit from the strong demand for its specialty semiconductors and performance materials in fast-growing end markets such as space solar power, renewable energy, imaging and sensing, and healthcare. While 5N Plus has gained significantly in value, the ongoing momentum in its business suggests that the rally is far from over.

The strong demand from terrestrial and space solar energy sectors, international presence, and efficient supply-chain position it well to deliver solid growth. Further, it is also a leading supplier of ultra-high-purity semiconductor materials outside China, which has applications in several critical technologies. This gives it a competitive edge, especially amid the volatile geopolitical scenario. In short, solid demand for its products and exposure to high-growth and critical technologies make 5N Plus a compelling long-term stock.

Under $50 stock#4: MDA Space stock

MDA Space (TSX:MDA) is an attractive TSX stock to buy under $50, despite the recent sharp drop in its price. The space technology company’s stock took a hit recently after EchoStar unexpectedly cancelled a multi-billion-dollar satellite deal. While the news rattled investors, MDA’s long-term growth story is intact. The company still holds a $4.6 billion order backlog, excluding EchoStar, providing strong visibility into revenue through 2025 and beyond.

Its diversified operations across Satellite Systems, Robotics & Space Operations, and Geointelligence continue to perform well, supported by a solid balance sheet. With global demand for satellite communications, defence, climate monitoring, and earth observation rising, MDA’s cost-competitive, broad portfolio positions it to capitalize on these expanding space-driven markets.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

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