Is it Time to Buy the TSX’s 3 Worst-Performing Canadian Stocks?

Canadian stocks like Yellow Pages Limited (TSX:Y) have been throttled over the past year, but investors shouldn’t necessarily look past them.

The S&P/TSX Composite Index rose 75 points on Thursday, January 25, 2024. Some of the top-performing sectors included energy, utilities, and battery metals. Today, I want to focus on three of the worst-performing equities to close out 2023. Are these reeling TSX Canadian stocks worth snatching up on the dip? Let’s dive in.

This TSX gold stock has been hit hard as the yellow metal flounders

NovaGold Resources (TSX: NG) is a Vancouver-based company that explores for and develops gold mineral properties in the United States. Shares of this gold exploration and mining stock have plunged 21% month over month as of close on January 25. The stock is now down 53% in the year-over-year period. NovaGold stock is now trading a smidgen over its 52-week low at the time of this writing.

The company released its fourth-quarter (Q4) and full-year fiscal 2023 earnings on January 24. NovaGold announced the completion of its 2023 fieldwork, particularly the continuous work at Donlin Gold, which it said “enhances the project’s value and visibility.” Meanwhile, the company’s treasury remains strong, with $126 million in cash and deposits as of November 30, 2023.

NovaGold is currently unprofitable and has generated substantial revenue growth. Indeed, earnings have suffered a deterioration over the past five years. The stock could positively benefit from momentum in the spot price of gold, but there are better gold miners to target for that purpose.

Does Aptose Biosciences still have a future worth betting on?

Aptose Biosciences (TSX: APS) is a Toronto-based clinical-stage biotechnology company; it discovers and develops personalized therapies addressing unmet medical needs in oncology primarily in the United States. This Canadian stock has plunged 24% month over month as of close on January 25. Its shares have plummeted 82% compared to the previous year. Aptose is trading just $0.02 off its 52-week low.

Investors can expect to see this company’s last batch of 2023 earnings in late March. In Q3 of fiscal 2023, the company reported operating expenses of $11.6 million — up from $10.0 million in Q3 fiscal 2022. Its net loss also deepened to ($11.4 million) compared to ($9.77 million). Meanwhile, in the year-to-date period, Aptose Biosciences’s net loss was ($39.2 million) — down from a net loss of ($31.8 million).

This company has also struggled to generate revenue in its hunt for prospects. It does boast a strong balance sheet, but it appears to have a severely limited upside right now.

One more struggling Canadian stock to zero in on right now

Yellow Pages Limited (TSX: Y) is a Montreal-based company that provides digital and print media and marketing solutions in Canada. Shares of Yellow Pages have dipped 1.8% over the past month. The stock has fallen 25% over the past year. Its shares are now trading at its 52-week low of $10.55.

This company is set to unveil its Q4 2023 earnings by the middle of February. In Q3 2023, Yellow Pages delivered revenues of $58.0 million — down from $66.3 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization; the measure aims to give a clearer picture of a company’s profitability. The company’s adjusted EBITDA came in at $17.9 million — down from $26.3 million.

Shares of this Canadian stock currently possess a very favourable price-to-earnings ratio of 2.9. Yellow Pages also boasts an immaculate balance sheet. This stock appears to have the most promise of the three we have covered today, considering its value and cash position.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Yellow Pages. The Motley Fool has a disclosure policy.

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