Over the last few years, several developments have led people to believe that certain stocks might excel in their respective industries, only to lead to disappointment for investors who hopped aboard the hype trains.
Investors are starting to realize that the stocks are overhyped. I will discuss three TSX stocks that might be better to leave behind this year, at least for the time being.
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Suncor Energy
Suncor Energy Inc. (TSX:SU) is a $77.6 billion market-cap giant in the Canadian energy sector. The integrated energy company has operations that cover everything from producing crude oil to selling it through its PetroCanada retail and wholesale distribution networks. As of this writing, SU stock trades for $64.63, and it is up by 13.9% in the last 12 months. Notably, the stock has seen a 48.3% rise in its share price from its 52-week low.
Higher oil prices are leading the charge for the uptick in share price. Canadian oil producers are also benefiting from the boost in export demand for Canadian fossil fuels. The company’s integrated business model protects it from negative moves in the oil market, but near-term volatility might persist. Income-focused investors might find its 3.7% dividend yield too attractive to pass up on, but I would wait on the sidelines for the business to improve.
Canopy Growth
Canopy Growth Corp. (TSX:WEED) was one of the biggest names to make headlines amid the marijuana legalization discussions a few years ago. All the hype around legalization led several big-name cannabis stocks to soar to unimaginable heights on the stock market. The subsequent normalization saw share prices dip to more reasonable levels that reflected inherent values. Canopy Growth stock came crashing down along with its peers and has not recovered since.
As of this writing, WEED stock trades for $1.71 per share, down by around 100% from its October 2018 levels, which were the highest its share prices have ever been. By the looks of things, it seems that it will stay that way. The start of 2026 has seen us witness WEED stock trading at near-penny stock levels. The company remains unprofitable, and it might be better to avoid investing in its shares for now.
Dye & Durham
Dye & Durham Ltd. (TSX:DND) might seem like a stock to buy on the dip, but I would advise against that right now. DND is a $280.1 million market-cap company providing practice management solutions for legal professionals. It delivers data insights that support critical corporate transactions and more. However, the resignation of its founder and board in December 16, 2025 set off a downturn that it cannot seem to recover from.
As of this writing, DND stock trades for $4.17 per share, down by around 80% from its December 2024 levels. The company hired another CEO in June 2025 to start the turnaround, but it has lost vital investor trust since the founder’s resignation. A lack of transparency around its finances, higher costs, and lower earnings before interest, tax, depreciation, and amortization (EBITDA) have left investors rightfully unmotivated to invest. I would advise avoiding this stock.
Foolish takeaway
While the turnaround might be going well for SU stock, it may be wise to stay on the sidelines until it becomes a more attractive investment. DND stock might need some time for its business to stabilize, and WEED stock might continue with sell-offs. I would avoid investing in those two indefinitely.
