If you’re hunting for value plays on the TSX, there are still some quality names trading below $50 that could deliver significant upside over the next year or more. Two attractively priced stocks combine solid business models, improving fundamentals, and catalysts that could push shares higher — but as always with lower-priced equities, be mindful of risk and volatility.
1) Kinaxis (TSX: KXS)
Kinaxis is a software company focused on supply chain planning and management solutions. Its flagship product leverages cloud-based analytics and scenario planning tools that help large enterprises forecast, optimize and respond to disruptions — a service that has become increasingly important amid global supply chain fragility. The company’s recurring subscription revenue model provides predictable cash flow, and recent contract wins suggest growing adoption among multinational customers.
Despite a pullback in its share price over the past year — partly due to macro tech rotation and short-term earnings misses — Kinaxis still trades under $50, making valuations appear more reasonable relative to long-term growth prospects. If the company can continue to win enterprise customers and expand revenues via upsells and deeper integrations, the stock could re-rate higher. However, success hinges on execution in competitive enterprise software markets, which can be cyclically sensitive.
2) Vermilion Energy (TSX: VET)
Vermilion Energy is an oil and natural gas producer with diversified assets across North America, Europe and Australia. The company’s lower share price reflects broader commodity volatility, but its underlying operations generate strong free cash flow when energy prices are supportive. VET has a track record of returning capital to shareholders through dividends and buybacks, which can buoy total returns even when valuation multiples expand slowly.
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What makes Vermilion interesting is that its diversified portfolio spreads risk across multiple basins and commodity types. Management has also cut costs and optimized operations, which helps protect margins in softer price environments. If energy markets strengthen or if the company continues to improve operational efficiency, Vermilion’s stock could outperform, especially given its sub-$50 valuation.
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Both Kinaxis and Vermilion carry distinct risks — tech execution risk in the former and commodity exposure in the latter — but for investors with a long-term horizon willing to tolerate volatility, these two TSX stocks under $50 offer potential paths to meaningful gains in 2026 and beyond.
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