Investors often shy away when stocks take a nosedive. However, sharp declines can sometimes present golden opportunities. Yet for investors worried about the current volatility of the market, it can be difficult to decide what TSX stocks are worth the risk and reward. So today, here are three TSX-listed companies that have recently experienced significant drops yet are worth a closer look.
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Ballard Power Systems
Ballard Power Systems (TSX: BLDP), a leader in hydrogen fuel cell technology, has seen its stock price decline notably. As of writing, the TSX stock’s market capitalization stood at approximately $789 million. In its fourth-quarter 2024 earnings report, Ballard reported revenues of $24.5 million, a 48% decrease compared to the same period the previous year. The gross margin for the quarter was negative 13%, though this marked a nine-point improvement year over year.
Despite these challenges, Ballard achieved record shipments of over 660 fuel cell engines in 2024, representing approximately 56 megawatts — a nearly 30% increase from 2023. The TSX stock also secured new net orders worth approximately $113 million during the year, culminating in a record year-end order backlog of $173.5 million. With a strong cash position of $603.9 million and no bank debt, Ballard is well-positioned to navigate industry challenges and capitalize on the growing demand for clean energy solutions.
Canopy Growth
Canopy Growth (TSX: WEED), once a frontrunner in the cannabis industry, has faced significant headwinds. The TSX stock recently plummeted by 9% to an all-time low of $1.26 per share after announcing plans to sell up to $200 million worth of stock. This potential sale would nearly double the TSX stock’s currently traded stock value on the Nasdaq and the TSX.
In its third-quarter fiscal year 2025 financial results, Canopy reported net revenue of $74.8 million, a 5% decrease compared to the same quarter the previous year. The net loss from continuing operations was $121.9 million, an improvement of 47% year over year. The company also reported an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $3.5 million, marking a 61% improvement from the prior year. Notably, Canopy’s Canada medical cannabis net revenue increased by 16%, and its Storz & Bickel segment saw a 19% revenue growth, driven by strong holiday purchases and robust direct-to-consumer online sales.
Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD), a Canadian payments software maker, has also experienced a downturn in its stock performance. The TSX stock’s market value was approximately $2.8 billion as of September 2024. In its third-quarter 2025 financial results, Lightspeed reported gross profit of $115.9 million, a 14% increase year over year. The overall gross margin was 41%, compared to 42% in the same quarter last year.
Despite these positive figures, Lightspeed faced challenges, including a significant drop in its stock price since its peak in 2021. The TSX stock has been exploring strategic options, including a potential sale, to enhance shareholder value. Lightspeed has also shifted its focus towards profitability under the renewed leadership of founder Dax Dasilva.
Bottom line
While the recent declines in these TSX stock prices may raise concerns, they also present potential opportunities for investors. Ballard Power Systems’s advancements in fuel cell technology and strong order backlog. Canopy Growth’s improvements in operational efficiency and growth in medical cannabis sales. Lightspeed Commerce’s increased gross profit and strategic review all suggest that these companies are taking steps to address challenges. As always, investors should conduct thorough research and consider their risk tolerance before making investment decisions. Yet these three TSX stocks certainly belong on your watchlist with prices this low.
