The S&P/TSX Composite Index rose just 24 points on Wednesday, June 14. Some of the top-performing sectors on the TSX included battery metals, information technology, and industrials. Meanwhile, sectors like energy, health care, and utilities finished the day in the red. Today, I want to look at three TSX stocks that have dropped to 52-week lows over the past two weeks. In this piece, I want to explain why I’m looking to buy the dip in these ailing equities. Let’s dive in!
This undervalued stock is worth snatching up right now
Tecsys (TSX:TCS) is a Montreal-based company that is engaged in the development, marketing, and sale of enterprise-wide supply chain management software and related services in Canada, the United States, Europe, and around the world. Shares of this tech stock have dropped 3.7% month over month as of close on June 14. That has pushed the stock into negative territory so far in 2023.
Investors can expect to see Tecsys’s fourth-quarter and full-year fiscal 2023 earnings later this month. In the third quarter of fiscal 2023, the company saw SaaS revenue climb 36% year over year to $9.5 million. Meanwhile, SaaS subscription bookings surged 152% to $5.8 million. Annual recurring revenue increased 27% to $75.4 million and professional services revenue jumped 5% to $13.6 million. Total gross profit grew 12% to $17.0 million.
This TSX stock hit a 52-week low of $23.93 late last week. The tech stock is trading in favourable value territory compared to its industry peers. Tecsys also offers a quarterly dividend of $0.075 per share. That represents a modest 1.2% yield.
Why I’m looking at Neighbourly Pharmacy stock in June
Neighbourly Pharmacy (TSX:NBLY) is a Toronto-based company that owns and operates a chain of retail pharmacies across Canada. Shares of this TSX stock have plunged 8.3% over the past month. Meanwhile, the stock has declined 19% in the year-to-date period.
This company unveiled its fourth-quarter and full-year fiscal 2023 earnings on June 8. In the fourth quarter, Neighbourly delivered revenue growth of 69% to $190 million. Meanwhile, same-store sales increased 1.6% year over year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 73% to $19.6 million. For the full year, the company posted revenue growth of 75% to $749 million and adjusted EBITDA surged 72% to $79.2 million.
Shares of this TSX stock hit a 52-week low of $18.25 late last week. This TSX stock is trading in very attractive value territory compared to its top competitors. The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. Neighbourly last had an RSI of 31, putting it just outside technically oversold levels.
One more undervalued stock I’d snatch up today
Sangoma Technologies (TSX:STC) is the third and final TSX stock I’d like to snatch up on the dip today. This Markham-based company manufactures, distributes, and supports voice and data connectivity components for software-based communication applications around the world. Its shares have dipped 1.3% week over week as of close on June 14. The stock is down 15% so far in 2023. Sangoma hit a 52-week low of $4.33 late last week.
In the third quarter of fiscal 2023, this company delivered sales growth of 18% to $62.7 million. Meanwhile, gross profit jumped 19% to $44.4 million. Adjusted EBITDA surged 17% to $12.2 million. This is another stock that is trading in very favourable value territory relative to the industry average.
