3 Beaten-Down TSX Stocks You Can Buy Now

If a stock is consistently down, its financial and business fundamentals are not always to blame. Sometimes, unique market conditions bring down notable companies as well.

| More on:
Upwards momentum

Image source: Getty Images

When you are looking for beaten-down stocks, make sure you pick the tough ones, i.e., the ones that are fundamentally strong to get up after the beating. Not all companies fall in this category, and for many of them, one long-term downward motion is enough to finish their capital appreciation potential for good.

But there are several down-trodden TSX stocks that you can buy now and be reasonably sure they are going to pay off well in the long-term.

Real estate managers company

Real Matters (TSX:REAL) is a technology company in the real estate sector, which unfortunately has not benefited from the sector-wide growth momentum of either, at least not since its 2020 peak. The company was on a tear well before the pandemic, and the stock rose over 200% in 2020 alone.

The post-pandemic growth momentum was quite substantial, and if an investor had bought the company when 2019 started and sold at the 2020 peak, they would have grown their capital by over 700%.

But it has been slipping ever since. The 77% fall since the 2020 peak has pushed the stock down to a single-digit price tag, and there is no end in sight. The last quarter’s results, while not very promising, were not too discouraging either, and the company claims that it’s on track to achieve its fiscal objectives by 2025. And if you believe in the potential of its business model and market penetration, buying now when the stock is beaten down can be a smart move.

A fuel cell company

Fuel cells, while not a very economical option right now, can be a great alternative or supportive technology to the existing green tech that relies primarily on batteries. But its demand is slowly rising in the specific markets, especially ones that have experienced the inherent flaws of certain green power generation methods like wind and solar. And that’s good news for a fuel cell company like Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP).

Ballard is a mature company. It has a market capitalization of $4.8 billion, and that’s after it has fallen 67% from its 2021 peak. That fall makes it a relatively beaten-down stock, at least in the short-term context. And if fuel cells are expected to take off globally, a mature fuel cell company like Ballard, with a well-known product line and global reach, is very well-positioned to thrive, and the stock will most likely follow.

An air purification company

Xebec Adsorption (TSX:XBC) is not at a great place right now. The stock started falling in January 2021, and the slide has continued almost unabated so far and has dropped 78.4%. That’s a compelling discount tag, especially if you believe the company can “reboot” and the stock would start growing as it did before the pandemic, when it rose over 4,000% between January 2017 and February 2020.

The company has lived through its glory days, but it has repositioned itself as a potentially influential player in the currently evolving green economy. It has multiple business avenues and expertise, including the installation of renewable gas infrastructure and hydrogen purification. Its wide range of products allows it to cater to the needs of various different industries.

Foolish takeaway

The three are not exactly undervalued stocks right now, but they are pretty beaten down. But the discount tag they offer is not the only attraction of these potentially explosive stocks. Under the right market conditions, these stocks have the potential to make you very rich, that is, if you can stick with them long enough.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Real Matters Inc.

More on Dividend Stocks

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

Payday ringed on a calendar
Dividend Stocks

3 Dividend Stocks That Pay Me More Than $54.57 Per Month

These three dividend stocks have done me well over the years, so let's look at how much I've gotten in…

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Royalty: 3 Fabulous Stocks to Buy Now for Decades of Passive Income

Rogers Communications stock and Canadian Natural Resources stock could pay you dividends for decades to come.

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

For growth and dividends this April, look to these two REITs that have quite the promising present as well as…

Read more »