3 Popular TSX Stocks Hitting 52-Week Lows

Looking for the latest bargain stocks? Let’s take a closer look at some enticing picks, including SNC-Lavalin Group Inc (TSX:SNC), Namaste Technologies Inc (TSXV:N), and Chemtrade Logistics Income Fund (TSX:CHE.UN).

| More on:
Where to Invest?

Image source: Getty Images

One of the best places to find bargain stocks is the 52-week low list—a compilation of out-of-favour companies. It can be a tricky list, however, given that many stocks trade lower for good reason.

Let’s take a look at three stocks hitting annual lows and ascertain whether they’re bargains or duds.

Chemtrade Logistics Income Fund (TSX:CHE.UN)

I’ve been a big fan of Chemtrade for some time now. In January I named it Canada’s best income stock. Why am I so bullish?

Chemtrade is the definition of a sleeper stock that continues to deliver year after year. For nearly 13 years, it has paid the same monthly dividend of $0.10 per share. Never has it cut or delayed this payout.

Over the last decade, Chemtrade shares have only risen by around 25%. If you’ve held on to receive the monthly dividend payments, however, you’ve made out like a bandit. Total shareholder return over the last 10 years surpasses 150%, handily outpacing the TSX Index.

Today, shares trade with a 13.4% dividend yield. That may seem too good to be true, but long-term investors in Chemtrade know that the company’s history backs up this income stream.

Namaste Technologies Inc (TSXV:N)

Namaste was one of the hottest cannabis stocks of 2018. In September, its market cap was nearly $1 billion. Since that peak, shares have fallen by around 80%.

If you’re tempted to pick up this pot stock on the cheap, you may want to take a closer look at what’s under the hood.

In October, Citron Research released a report charging Namaste with being a “complete fraud.” Citron essentially accused Namaste’s CEO of engaging in a pump-and-dump scheme. Within months, the CEO was fired.

Today, the stock remains a mess. Compared to other cannabis stocks, Namaste’s business is light years behind. I’m not touching this stock with a 10-foot pole.

SNC-Lavalin Group Inc (TSX:SNC)

SNC-Lavalin is another stock under pressure. This time, there could be opportunity within the flames.

The company builds infrastructure projects, primarily for energy, materials, and transportation organizations. This business model comes fraught with risks. Last year, the company booked a $350 million loss on a single project. Additionally, a political scandal involving Prime Minister Justin Trudeau continues to weigh on shares.

Still, the underlying businesses look healthy. Its oil and gas segment, for example, has a project backlog worth more than $1.5 billion. Its general infrastructure segment has a project backlog in excess of $8 billion.

SNC-Lavalin comes with plenty of risks, but with shares trading at 10-year lows at writing, this could be a “buy when others are fearful” opportunity.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ryan Vanzo has no position in any stocks mentioned.

More on Dividend Stocks

Retirees sip their morning coffee outside.
Dividend Stocks

How I’d Invest $1000 in February to Make Easy Passive Income

Looking to earn some extra passive income in February but don't have much cash? Build an easy portfolio with these…

Read more »

sad concerned deep in thought
Dividend Stocks

Is it Worth Investing in Rogers or Shaw Before the Pending Merger?

A Rogers stock and Shaw stock deal looks all but certain, yet should investors still buy the stock? Or are…

Read more »

runner ties shoe while stopped on grass outside
Dividend Stocks

Is Nutrien Stock a Buy in February 2023?

Nutrien stock should benefit from the very favourable supply/demand fundamentals in the agriculture business in 2023.

Read more »

thinking
Dividend Stocks

Is Brookfield Asset Management a Buy in February 2023?

Brookfield Asset Management is among the largest stocks trading on the TSX. Let's see why BAM stock is a buy…

Read more »

Growth from coins
Dividend Stocks

3 Dividend Stocks Growth Investors Should Buy Today

If you want growth AND dividends, then these are the three dividend stocks I would buy right now.

Read more »

sale discount best price
Dividend Stocks

2 Canadian Stocks That Are Simply too Cheap to Avoid

These Canadian stocks have fallen far from all-time highs, but that leaves significant value to lock up, as well as…

Read more »

Payday ringed on a calendar
Dividend Stocks

2 Best Monthly Dividend Stocks for February 2023

Here are two of the best Canadian monthly dividend stocks you can buy in February 2023.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Got $10,000? Create $231 in Passive Income Each Quarter Starting Today!

If you have some cash you're sitting on, now is the time to invest in this passive-income stock that continues…

Read more »