There are some great deals out there when it comes to some of the strongest companies over the last few decades. And I definitely think investors should consider those. However, there are other companies whose outlooks are less clear, though they could provide immense income.
Today, I’m going to be looking at the worst-performing TSX stocks today, and see if these stocks are deals, or major duds year to date.
Bausch Health (TSX:BHC) shares are down 75% year to date, with the healthcare stock falling to a fraction of where it was before the end of 2021. Though the stock did just come out with earnings, which could tell us exactly what investors should consider.
Part of the drop came from Bausch stock deciding to split off its Bausch + Lomb branch. That’s still underway, with analysts believing it could prove beneficial for the company. Meanwhile, the company still seems to be impacted by poor performance if we’re looking just at its latest earnings.
Revenue came in down 3.1% year over year during the third quarter to US$2 billion, however its net income surged 112% to $339 million! Further, its earnings per share more than doubled to US$1.1. The pharmaceutical industry is set to continue growing, and the company now has enough cash coming in to take on some new projects. This could prove to be a good chance to buy low today. Especially while BHC trades at 9.8 times earnings.
It shouldn’t come as any surprise that Shopify (TSX:SHOP) is also on this list. Shopify stock is currently down about 72% year to date, though has improved over the last few months, if only slightly. Shopify fell for a number of reasons, both from market performance as well as the company’s own issues.
The drop in tech stocks and e-commerce stocks both contributed to the drop in SHOP stock. However, mass layoffs, and simply growing too much too soon also led to the fall. Now, it’s unclear when Shopify will recover, and if it can ever reach those $222.87 all-time highs (adjusted for the stock split).
Still, in this case, I think the share price today at $51.25 could still be a great deal. Analysts predict a potential upside of 43% as of writing. Further, while there’s a downturn now it won’t last forever. Given the growth in Shopify and its expansion before the fall, it shouldn’t have much trouble getting back on track after a downturn.
Finally, Lightspeed Commerce (TSX:LSPD) is another of the TSX stocks that dropped significantly in 2022. Shares are down 56% year to date, which again is an improvement. Still, it’s but a shadow of the all-time highs near $160 at $22.30 as of writing.
Now there’s a combination of reasons why shares dropped so much for Lightspeed stock. Over a year ago, shares fell because of the short seller report that Lightspeed dismissed as false accusations. It also came under pressure from the US$2 billion in acquisitions it made.
Now, however, those acquisitions are coming online. Further, LSPD stock has a few benefits above other e-commerce companies. It suffered during the pandemic from its point-of-sale arm, but with restaurants and retail in-store shopping back up, it’s seeing a recovery. So this could be a great time to consider the stock, ahead of an eventual e-commerce recovery.
All three of these TSX stocks could indeed be considered good options and go through a turnaround. However, of the three, I’d put my best and quickest bet on Lightspeed. The ecommerce platform is seeing revenue climb, and has acquisitions bringing in additional cash flow. These developments could lead the company to a recovery far sooner than other TSX stocks at 52-week lows.