The market is stacked with great stocks that trade at value levels. Many of those TSX stocks could form the backbone of a successful portfolio given the opportunity. The challenge is identifying which stocks can provide true upside rather than being just a cheap buy.
Many stocks trading below $50 are either struggling businesses or in a cyclical slump. Fortunately, there are several standouts in that group. These are the TSX stocks that offer long-term positioning and fundamentals that have room for growth.
Together, these TSX stocks provide a compelling mix of value and growth for long-term investors. Here are two of those superb long-term TSX stocks currently trading at sub-$50 levels.
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Telus is an undervalued telecom primed for a rebound
Telus (TSX:T) is one of Canada’s big telecom stocks. The telco offers subscription-based services that generate a recurring revenue stream backed by a strong regulatory environment.
On the surface, this should make Telus a cash-producing machine. In reality, telecoms are capital-intensive operations that require significant investment for upgrading and maintaining networks. The telecom space in Canada is also fairly competitive, with frequent turnover among the big telecoms.
As a result, Telus has spent the past few years under pressure, with rising interest rates, higher debt servicing costs, and slower telecom growth weighing on the stock. The result is a share price that has fallen far below its historical norms, creating a rare valuation setup for long‑term investors.
Over the trailing 12-month period, the stock is down by over 16%.
Telus now trades at levels that imply little confidence in its future. Despite this, Telus generates stable cash flow and maintains one of the strongest customer retention rates in the industry.
So then, where is the upside for investors looking at Telus as one of the TSX stocks with potential?
Rising interest rates led Telus to engage in cost-cutting and restructuring efforts. Telus has aggressively improved efficiency and streamlined its operations. Those cuts included Telus suspending its dividend growth program.
Those efforts brought Telus’s dividend to a more sustainable level. Concurrently, interest rates have dropped from their prior highs, adding to the company’s potential.
With the stock priced at a discount, Telus’ quarterly dividend now offers an inflated 9.3% yield. This handily makes Telus one of the top TSX stocks for income producers right now.
At the current price, even a $5,000 investment in Telus will generate multiple shares each quarter from reinvestments alone.
Have you heard of MDA’s superb growth potential?
While Telus represents value and recovery, MDA Space (TSX:MDA) offers pure growth. MDA has emerged as one of Canada’s most exciting space technology players, with exposure to satellite systems, robotics, and space infrastructure.
MDA’s work in advanced robotics and next-generation satellite constellations has positioned it uniquely in the growing space economy.
The company has global appeal, too. MDA offers those services to customers not only in Canada, but in the U.S., Europe, Asia and Middle East. MDA has a growing backlog of work and multi-year contracts that form a long runway of revenue visibility.
As of writing, MDA trades at just over $41 per share. Given its unique positioning, huge backlog and long-term opportunities in a growing sector, the stock still has plenty of room to grow. In fact, over the past 12-month period, MDA stock has risen by over 50%.
That growth not only speaks to MDA’s backlog and potential, but also rising confidence. Even after climbing to its current level, this TSX stock still remains under $50. For longer-term investors seeking a growth-focused investment, MDA screams a multi‑year opportunity that can drive sustained revenue and earnings growth.
MDA’s unique mix of contract visibility, technological leadership, and exposure to a booming industry makes it one of the most compelling growth names under $50.
These TSX stocks offer long-term potential
Both Telus and MDA offer significant upside, but for different reasons. Telus provides stability, income, and a clear path to recovery as market conditions normalize and cost efficiencies take hold. MDA delivers growth, momentum, and exposure to a rapidly expanding sector with long‑term tailwinds.
Both TSX stocks trade under $50 and offer long-term growth potential. Long‑term investors looking to add stocks that can provide long-term growth should consider one or both of these opportunities.
