Investing in fundamentally strong stocks can help investors accumulate significant wealth over time. Moreover, investors can begin to invest in high-quality TSX stocks with as little as $50. In this context, here are two TSX stocks that have strong growth potential, benefitting from low stock prices and robust cash flow generation.
The first stock is SECURE Energy Services (TSX: SES), which trades below $50. This company is a leading waste management and energy infrastructure firm with a resilient business model capable of generating stable free cash flow, supporting both dividend payments and stock price appreciation.
SECURE provides essential processing, recycling, and disposal solutions to its clients. Its portfolio comprises irreplaceable assets that give the company a competitive advantage. Furthermore, long-term relationships with top producers ensure a stable revenue base, enhancing the company’s financial resilience.
SECURE has also taken strategic steps to optimize operations. By divesting non-core assets, the company has achieved sustained growth, improved profit margins, and increased cash flow generation. These improvements have allowed SECURE to reduce debt, maintain ample financial flexibility, and seize growth opportunities.
The second stock is CES Energy Solutions (TSX: CEU), which also trades under $50. This company offers advanced chemical solutions for the energy sector. With a light asset operating model, a broad footprint in major U.S. oilfields, and stable revenues from production chemicals, CES has a solid foundation for generating robust free cash flow.
Notably, the increasing complexity of oil and gas extraction processes is expected to drive demand for CES’s specialized products. Additionally, as operators adopt more advanced drilling technologies, CES will benefit from the growing need for innovative production and drilling chemicals. The company’s vertically integrated business structure and strategies enhance its competitive position, likely supporting a sustained growth trajectory.
