3 No-Brainer TSX Stocks Under $50

These under-$50 TSX stocks have solid growth potential and can deliver significant returns over time, beating the benchmark index.

| More on:
calculate and analyze stock

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in fundamentally strong stocks can help create substantial wealth over time. Moreover, investors can start investing in high-quality TSX stocks with as low as $50. Against this background, here are three TSX stocks with solid growth potential. Notably, their low dollar price and ability to generate significant cash flows make them a no-brainer investment.

SECURE Energy Services

SECURE Energy Services (TSX:SES) is a compelling long-term stock trading under $50. This leading waste management and energy infrastructure company has a resilient business model and generates solid free cash flow that supports its dividend payments and stock price.

The company offers essential processing, recycling, and disposal solutions to its customers. Its portfolio includes difficult-to-replicate assets that operate in markets with high barriers to entry, giving the company a competitive edge. Moreover, its ability to generate stable and recurring cash flows—approximately 80% of its volumes come from production-related and recurring waste streams, adds stability. Additionally, its long-standing relationships with top-tier producers ensure a steady revenue base, enhancing the company’s financial resilience.

Created with Highcharts 11.4.3Secure Waste Infrastructure PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The company focuses on long-term growth projects supported by commercial agreements that guarantee reliable volumes and recurring cash flows throughout the contracts. This approach secures a minimum rate of return on investments and ensures predictable financial performance.

SECURE has also taken strategic steps to streamline its operations. By divesting non-core assets, the company has achieved consistent growth, margin expansion, and increased cash flow generation. These improvements have enabled SECURE to significantly reduce its debt, creating ample financial flexibility to capitalize on growth opportunities.

With industry demand trending upward and the integration of recent accretive acquisitions, SECURE is positioned for continued growth. The company’s growing earnings and cash flows could increase its stock price and support its future payouts.

5N Plus

5N Plus (TSX:VNP) is another attractive TSX stock to buy under $50. It produces specialty semiconductors and performance materials and is poised to benefit from its leadership in most markets it serves. Its products have applications in several high-growth industries such as renewable energy, space, pharmaceutical, medical imaging, security, and industrial. This provides a solid base for long-term growth.

Created with Highcharts 11.4.35n Plus PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

5N Plus holds a dominant position in the specialty semiconductors segment and is a leading supplier of ultra-high purity semiconductor compounds outside of China. Further, long-term partnerships with key customers ensure a stable revenue stream. 5N Plus will gain from increasing demand for renewable energy solutions and space-based solar power technologies. These sectors, along with applications in sensing and medical imaging, provide significant growth potential for the company in the years ahead.

The company’s performance materials segment will likely deliver solid growth led by health and pharmaceutical products. These offerings deliver high profitability and predictable cash flows, contributing to the company’s financial stability. Moreover, 5N Plus is exploring additional growth opportunities through product expansion and partnerships and is poised to deliver solid growth.

CES Energy Solutions 

CES Energy Solutions (TSX:CEU) presents a compelling long-term investment opportunity under $50. The company produces advanced chemical solutions for the energy industry. With an asset-light business, extensive presence across key U.S. oil basins, and steady revenues from production chemicals, CES is well-positioned to generate robust free cash flows regardless of commodity cycles.

Created with Highcharts 11.4.3Ces Energy Solutions PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Notably, the increasing complexity of oil and gas extraction processes will fuel demand for CES’s specialized offerings. Further, as operators adopt more advanced drilling techniques, CES stands to gain from increased demand for its innovative production and drilling chemicals designed to enhance efficiency and maximize output.

Additionally, CES will benefit from the growing adoption of advanced chemical technologies and steady upstream activity across North America. Moreover, its vertically integrated business structure and strategic sourcing strategies enhance its competitive position and will likely support its ongoing growth trajectory.

Should you invest $1,000 in Ces Energy Solutions right now?

Before you buy stock in Ces Energy Solutions, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Ces Energy Solutions wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Ces Energy Solutions. The Motley Fool has a disclosure policy.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Investing

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Monday, February 24

TSX investors may remain cautious as they await updates on the ongoing U.S.-Canada trade negotiations

Read more »

The sun sets behind a power source
Dividend Stocks

Outlook for Fortis Stock in 2025

Fortis is up 15% in the past year. Are more gains on the way?

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution 

The investment environment is seeing a shift in 2025. Here is an investment strategy to consider for your $7,000 TFSA…

Read more »

oil pump jack under night sky
Energy Stocks

Canadian Oil and Gas Stocks to Watch for in 2025

Investing in undervalued Canadian oil and gas stocks can help you deliver outsized gains in 2025.

Read more »

Canadian Dollars bills
Dividend Stocks

1 TSX Stock to Invest $20,000 and Create $835.80 in Passive Income

If you want passive income, you want security. And you can get it with this top-notch dividend stock.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

TFSA-Ready: 2 Low-Risk TSX Dividend Stars

These safe, dividend-paying stocks could help your TFSA grow faster than you think in the long run.

Read more »

An investor uses a tablet
Tech Stocks

Got $1,500? 1 Tech Stock to Buy and Hold Forever

Meta Platforms (NASDAQ:META) has been a winning bet that could continue to perform in 2025.

Read more »

ETF chart stocks
Investing

Turn a $20,000 TFSA Into $70,000 With This Easy ETF

This low-cost S&P 500 ETF is a simple way to grow your TFSA.

Read more »