Just because a stock trades under $50 doesn't mean it lacks scale or ambition. In fact, some of the most exciting growth stories on the ASX sit well below that price point.
Right now, two names stand out to me as businesses that could surprise on the upside over the next few years.
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Life360 Inc. (ASX: 360)
With shares trading at $21.76, Life360 is a long way below where analysts think it could be headed.
This is not just another software name riding a trend. Life360 operates a global family safety platform with nearly 100 million monthly active users (MAU) and a fast-growing base of paying subscribers. Its ecosystem includes location tracking, crash detection, emergency dispatch, and digital safety features. Over time, it has layered in advertising and data capabilities through acquisitions like Tile and Nativo.
One of the key concerns weighing on software stocks recently has been artificial intelligence disruption. But Bell Potter argues that Life360 "is an app rather than [a] software company so faces little risk of AI displacement given the ecosystem it has developed over >15 years."
That long development runway matters. The company has embedded itself into family routines, and switching costs are behavioural as much as technological.
Valuation also looks more interesting after the pullback. Bell Potter notes the stock is trading on 2026 and 2027 EV/Adjusted EBITDA multiples of roughly 31x and 21x, which it believes "looks value for forecast growth of c.45% in both periods." The broker has a buy rating and a $41.50 price target, implying around 90% upside from current levels.
If Life360 continues executing on user growth and monetisation, I think the current share price could prove to be a significant underestimation of its long-term potential.
Breville Group Ltd (ASX: BRG)
Breville shares are currently trading at $30.83, which, in my view, doesn't fully reflect the quality of the brand or its global opportunity.
The ASX stock's half-year result was described by Morgans as "better-than-feared," with double-digit sales growth of 10%. Tariff costs weighed on gross margins and kept net profit after tax growth to just 1%, but crucially, management provided FY26 EBIT growth guidance. That visibility seems to have reassured analysts that this is not a broken growth story.
Morgans said it continues to be impressed by Breville's "strong operational execution, green shoots in Food Prep, and powerful medium-term tailwinds (geographic expansion, espresso tailwinds, NPD, Best Buy developments)." It has a buy rating and a $40.65 price target, which suggests roughly 31% upside.
What I like most about Breville is that it isn't reliant on one product cycle. It has built a premium brand in espresso machines and kitchen appliances, and it is steadily expanding geographically. Over time, that combination of product innovation and international growth can drive compounding earnings.
Foolish takeaway
Both Life360 and Breville are trading under $50, but neither is a small or speculative ASX stock.
Life360 offers high-growth optionality in a global digital ecosystem, while Breville combines brand strength with expanding international reach. If execution continues and sentiment improves, I believe both have the potential to deliver outsized returns from here.
