TMX Group Limited operates stock exchanges in Canada, including the primary stock market, the Toronto Stock Exchange (TSX). The financial services company launched the flagship TSX30 program in 2019 to showcase the 30 top-performing stocks over a three-year period.
The annual rankings come out every September, and growth investors can use the list as a guide when prospecting. Ballard Power Systems (TSX: BLDP) and Wesdome Gold Mines (TSX: WDO) were perennial winners from 2019 to 2021. The industrial stock ranked 12th, 2nd, and 4th, while the mining stock placed 19th, 7th, and 10th.
However, both stocks missed making the fourth edition of the list in 2022. Their share prices are down nearly 50% or half-priced from a year ago. Can these TSX30 winners rebound in 2023, and are they worth buying today?
Long-term growth prospects
Ballard Power Systems is an exciting prospect, especially for ESG and clean energy investors. This $2.4 billion company develops and manufactures proton exchange membrane (PEM) fuel cell products. The fuel cell solutions are for markets such as heavy-duty motive, portable power, material handling, and engineering services.
At $7.96 per share, the trailing one-year price return is 42.6%. Interestingly, BDLP is red-hot in 2023, given its 22.8% year-to-date gain. Even market analysts covering the stock are bullish. Their 12-month average price target is $17.03, a return potential of 113.9%.
Management’s mission is to use its fuel cell expertise to deliver valuable and innovative solutions globally and power the hydrogen society. Moreover, it believes zero-emission fuel cell vehicles will positively change the next generation’s lives.
Ballard’s net loss after three quarters in 2022 widened 97.1% year over year to US$139 million. But despite concerns about the profitability of fuel cell technology, the long-term growth prospects are enormous. Management plans to deepen its global manufacturing footprint to support and meet the expected global market demand growth through 2030.
Since November 2022, Ballard has been entering into several business arrangements. Ballard commissioned a green hydrogen plant and signed contracts for the delivery of fuel cell engines to various clients. The most recent deal is the supply of hydrogen fuel cell modules to power several hybrid hydrogen and battery ultra-class mining haul trucks.
Transition year
Wesdome aims to build Canada’s next intermediate gold producer. Management will leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to achieve the goal. The $950.9-million mining company should eventually produce 200,000 ounces or more of gold from its two high-grade underground assets.
Unfortunately, the once high-flyer lost steam in 2022 after three consecutive years on the TSX30 List. At $6.60 per share, the stock is down 11.8% year to date. The Q4 and full-year 2022 results didn’t impress investors. Wesdome incurred a net loss of $14.7 million compared to the $131.3 net income in 2021.
Management said 2022 was a transition year, and it expects Wesdome to be financially and operationally stronger by 2024.
Better choice
If you were to choose between Ballard and Wesdome today, the former is outperforming and has better growth potential. Meanwhile, you can wait for the mining stock to regain lost ground.
