2 TSX Stocks Under $50 That Could Skyrocket
Alex Smith
3 hours ago
Investors do not need large amounts of capital to start investing in high-quality TSX stocks. Even as little as $50 can be enough to start investing in some of Canadaâs most promising businesses. However, note that a low share price does not automatically make a company a good investment. Thus, one should focus on the underlying strength of the business.
Companies with durable business models, strong fundamentals, competitive advantages, and resilient revenue streams are better positioned to skyrocket and compound value over time. Further, one should look for companies with a healthy balance sheet, which will provide flexibility during economic slowdowns and enable continued investment in growth.
With that background, here are two TSX stocks under $50 that could skyrocket.
Under $50 TSX stock #1: Enerflex
Enerflex (TSX:EFX) is an attractive TSX stock under $50 that could skyrocket. Its investment case is supported by its recurring cash flow, solid backlog, and disciplined capital allocation.
Enerflex designs, builds, and services energy infrastructure across the world. Its core capabilities span gas compression, natural gas processing, cryogenic systems, and produced water treatment. Importantly, the company operates across the full project lifecycle, from front-end engineering and design through installation and long-term maintenance. This integrated model deepens customer relationships and generates multiple revenue streams tied to the same assets.
A major growth driver is its Energy Infrastructure (EI) business. Through this segment, the company owns and operates energy assets under long-term contracts. This model generates predictable, recurring revenue and reduces earnings volatility. Customer agreements supporting this segment are expected to produce roughly $1.4 billion in revenue over the coming quarters, providing a stable financial base.
Its After-market Services (AMS) division adds further resilience by delivering maintenance, parts, and operational support to a large installed equipment base, producing steady, high-margin service income. Meanwhile, the Engineered Systems (ES) segment supplies modular gas and water treatment solutions and has a backlog of approximately $1.1 billion as of late 2025, providing revenue visibility for the second half of 2026.
With structural growth in North American natural gas production and rising water handling needs, Enerflex is positioned to expand margins, generate stronger free cash flow, and strengthen its balance sheet, making it a compelling long-term investment.
Under $50 TSX stock #2: Bird Construction
Shares of Bird Construction (TSX:BDT) are a compelling long-term bet. It is one of Canadaâs leading construction and maintenance firms and is well-positioned to benefit from an expanding presence in some of the countryâs most resilient end markets.
The companyâs scale and diversification support its investment case. Bird has built a strong presence across Canada, broadening its exposure into civil infrastructure and complex industrial work. These segments are supported by structural drivers, including public infrastructure spending, energy transition projects, and government-backed defence initiatives. Such markets tend to generate durable, multi-year demand.
While macroeconomic headwinds have weighed on parts of the construction industry, Birdâs operating momentum remains intact. The company reported a combined backlog exceeding $10 billion, which enhances long-term revenue visibility. Although near-term growth has faced pressure from delayed project starts and softer industrial activity, these issues appear temporary.
The companyâs balance sheet remains solid, providing both resilience and strategic flexibility. Bird appears well-equipped to navigate the current volatility while continuing to invest for growth. Its capital position allows management to pursue selective, value-accretive acquisitions that expand capabilities and deepen market reach.
The recent acquisition of Fraser River Pile & Dredge will broaden the companyâs technical expertise and enable it to participate in large-scale, nation-building infrastructure projects, including ports and coastal developments. The expansion into marine services diversified its revenue streams and will support long-term growth.
Overall, Bird Constructionâs substantial backlog, exposure to Canadaâs infrastructure buildout, and improving revenue visibility augur well for growth and could help its stock to skyrocket.
The post 2 TSX Stocks Under $50 That Could Skyrocket appeared first on The Motley Fool Canada.
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More reading
- 5 Top Canadian Stocks to Pick Up Now
- 2 Canadian Stocks to Buy for Your $7,000 TFSA Contribution for 2026
- Buy These Stocks Before Canada Starts Building Its $1 Trillion in Projects
- The TSX Could Extend Its Bull Run in 2026 (Minus 3 Factors)
Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enerflex. The Motley Fool has a disclosure policy.
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