2 TSX Stocks Priced Under $50 That Could Have Meaningful Room to Run

There’s no question that stock market volatility to start the year has been more than investors expected. Coming into 2026, the hope was that as inflation cooled and interest rates declined, the economy could achieve a soft landing and TSX stocks would start to rally.

And while the War in Iran has significantly changed the economic landscape of 2026, it has also created some significant opportunities for long-term investors, especially as some high-potential long-term TSX stocks trade off their highs.

Because the best opportunities aren’t always the stocks that look the cheapest on the surface. More often, they’re high-quality businesses that have pulled back temporarily, even though their long-term outlook hasn’t really changed.

That’s why it can be worth focusing on companies under pressure right now but still have clear paths to growth, such as GFL Environmental (TSX:GFL) and Northland Power (TSX:NPI).

GFL Environmental: A defensive compounder with room to grow

When it comes to defensive growth stocks that you can buy and hold for years with confidence, GFL is at the top of that list. And not long ago, the TSX stock was trading above $70, so with its share price sitting just shy of $50, it creates a significant opportunity.

That naturally raises some questions. However, the decline has more to do with sentiment than anything else.

There have been concerns around GFL’s debt levels, integration risk from acquisitions, and broader multiples compression across infrastructure and growth names. That combination has weighed on the stock, even though the business itself continues to perform.

And that’s crucial because GFL operates in waste management and environmental services. This is about as essential as it gets. Regardless of economic conditions, waste still needs to be collected, processed, and managed. That’s why GFL is such a reliable long-term TSX stock.

Waste management creates highly recurring, defensive revenue that doesn’t swing much with the economy.

On top of that, the company is still growing as it continues to expand through acquisitions that help scale the business. And because the industry itself is still fragmented, it gives the company plenty of runway to keep consolidating over time.

So, while the stock has pulled back and now trades at a forward enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA) ratio of just 11.3 times, below its five-year average of 13.3 times, there’s no question it’s one of the best growth stocks on the TSX to buy today.

Northland Power: A recovering TSX stock with a major growth pipeline

Unlike GFL, Northland is a renewable energy stock and power producer, but while it operates in a completely different sector than GFL, it has some important similarities.

First off, it generates power, which is essential, and it sells most of that power through long-term contracts and power purchase agreements, making a large portion of its earnings predictable, recurring, and defensive. On top of that, it also has significant long-term growth potential, potentially even more than GFL.

In addition, Northland is also trading well off its highs, especially after the stock has sold off significantly in recent months after a dividend cut of roughly 40%, combined with delays and cost pressures tied to major projects like Hai Long.

However, while the dividend cut was a bit of a shock, it also considerably improved the company’s financial flexibility and made it easier to fund its development pipeline. That reduces risk over time and gives TSX stock more room to execute on its projects.

And those projects are where the real upside comes from. For example, Northland currently has roughly 2.7 gigawatts of net generating capacity. On top of that, it has about 1.1 gigawatts under construction, including Hai Long and Baltic Power.

That’s a meaningful increase because once those projects come online, Northland is effectively increasing its earnings base by roughly 40% to 50%. That’s not a small step up. It’s a major expansion of the business.

So, while the last year has been rough for the stock, the underlying business is still moving forward. And even after the 40% cut to the dividend, the stock still yields roughly 3.1% today.

Therefore, if you’re looking for a reliable TSX stock to buy while it’s out of favour and hold for years, Northland Power is unquestionably a top choice.

The post 2 TSX Stocks Priced Under $50 That Could Have Meaningful Room to Run appeared first on The Motley Fool Canada.

Should you invest $1,000 in GFL Environmental right now?

Before you buy stock in GFL Environmental, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and GFL Environmental wasn’t one of them. The 10 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 over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• 3 Undervalued Canadian Stocks to Buy Immediately
• A Canadian Stock Poised for a Massive Comeback in 2026
• The Canadian Energy Stock I’d Buy Right Now and It’s a Bargain
• 2 Canadian Dividend Stars That Still Offer a Good Price
• RRSP Idea: 3 Canadian Stocks to Own for the Next Decade

Fool contributor Daniel Da Costa has positions in Northland Power. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.