Three TSX stocks released earnings this week that investors should certainly be looking into on the TSX today. These stocks have long been popular for investors, and yet there may be a reason to buy up two and leave one alone.
Right now, let’s take a look at what these earnings told us this week.
Ballard Power stock
Ballard Power (TSX:BLDP) shares jumped this week as the renewable energy company announced, despite a loss for the second quarter, its orders more than doubled compared to 2022 levels. The news left investors excited that perhaps the worst was over for the stock.
Ballard stock may have increased but is still down 45% in the last year, as of writing. With lower sales last year, and supply-chain disruptions, it was a wonder whether the company would ever recover.
Yet after more deals coming through, including one with Ford for its heavy-duty truck, analysts are likely to show their support for the stock once more. This could see the cheap $6.50 stock more than double in 2023 — especially as the company perhaps releases renewed guidance for the next year and beyond.
WELL Health stock
Another company which released results this week was WELL Health Technologies (TSX:WELL). The virtual healthcare provider has long been seen as undervalued by analysts, with shares trading around $4.50. WELL stock reported yet another record earnings for the most recent quarter, with shares climbing 5% at the news.
The stock achieved record quarterly revenue of $170.9 million, the 18th consecutive quarter of record revenue performance. It continued to announce further acquisitions and deals to expand its virtual healthcare providing and upgraded guidance.
WELL stock now expects that 2023 revenue will be in the upper half of its guidance, between $740 and $760 million. This should mainly come from improved organic growth throughout the rest of the year.
Yet shares remain undervalued. They are about half of where they were during the peak of the pandemic, though up 21% in the last year. So, honestly, a 5% increase in shares is a drop in the bucket for future investors.
Canadian Tire stock
Finally, one that investors may want to avoid for now is Canadian Tire (TSX:CTC.A). Canadian Tire stock announced that although it may be summer, its sporting goods and home improvement retail sales dropped by 4.2% year-over-year. This caused overall revenue to decline by over 4% since the second quarter of 2022.
The results were disappointing, resulting in a 4% drop in share price. Not overdone, but still worrisome. Especially since management stated it will have to review its guidance for 2022 until 2025 given the continued macroeconomic environment.
For now, it seems it will focus on its Triangle Rewards program for the best results. Still, with sales dropping in the latter half of the second quarter, investors should perhaps avoid the stock for now, as the company could see these results bleed into the next quarter as well.
