There’s no shortage of great options to consider adding to your portfolio. Sometimes, an opportunity arises to purchase those great investment options at a huge discount. One such example is taking a look at some of the worst-performing stocks in the TSX from the last month.
Let’s look at whether those worst-performing stocks in the TSX are still good options to consider buying (now at a discount).
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Option #1: Tourmaline Oil
Tourmaline Oil (TSX: TOU) is a name that most investors should be familiar with, at least in some part. As of the time of writing, Tourmaline’s stock price dipped nearly 9% in July, making it one of the worst-performing stocks in the TSX.
Tourmaline is the largest natural gas producer in Canada. The company boasts multiple operational sites, with a focus on the Western Canadian Sedimentary Basin.
Tourmaline’s operations are focused in and around the Alberta Deep Basin. That site alone houses 23 gas plants, collectively producing a whopping 2.5 bcf/day (billion cubic feet) of natural gas.
In the longer term, the opportunities for Tourmaline are immense. LNG is increasingly raised as an export item. Natural gas is also seen as an alternative to dirtier fossil fuels such as coal.
Turning to income, Tourmaline really shines. While this was one of the worst-performing stocks on the TSX in July, Tourmaline boasts a healthy quarterly dividend.
As of the time of writing, the stock offers a tasty 3.45% yield, with an established history of providing annual or better increases. Additionally, the stock is known to provide special dividends to shareholders, increasing potential earnings even further.
In short, despite being one of the worst-performing stocks in the TSX over the last month, Tourmaline still holds immense long-term potential. The company is profitable, has sound fundamentals and boasts long-term growth.
If anything, investors should see this recent blip in stock price as an opportunity fueled by weak commodity prices.
Option #2: Teck Resources
Another one of the worst-performing stocks in the TSX in July was Teck Resources (TSX: TECK.B). During July, the stock dropped nearly 20%, a feat which should put the stock on the radar of investors everywhere.
For those unfamiliar with the stock, Tech is a diversified miner. More specifically, Teck has a focus on copper and zinc mining. The company maintains those operations in a diverse portfolio that includes operations in North and South America.
Copper is an important metal that is seeing increased demand. The metal is used in a vast array of applications, from plumbing and electrical wiring to batteries and electric vehicles.
Teck is focusing its growth efforts on expanding its copper mining operations. The company is planning on a full-year guidance expected to hit up to 565,000 tonnes.
Turning to income, Teck offers investors a well-covered quarterly dividend. As of the time of wiring, the yield on that dividend works out to a respectable 1.11%.
In short, Teck is a strategic metal play that will benefit from the rising demand for copper and zinc. Investors contemplating the stock should see its inclusion as one of the worst-performing stocks in the TSX last month as a buying opportunity.
Will you buy the worst-performing stocks in the TSX?
No stock is without risk. That’s especially true when evaluating the two stocks above, which were some of the worst-performing stocks in the TSX last month.
Fortunately, both Teck and Tourmaline offer strong fundamentals, intriguing growth potential and a juicy income.
In my opinion, a small position in one or both of these stocks should be part of any larger, well-diversified portfolio.
