Big Losers of the Week: 6 Ice-Cold Stocks That Could Quench Your Contrarian Thirst This Summer

These six stocks, including Canopy Growth Corp. (TSX:WEED)(NYSE:CGC), had big losses last week. But how long will the pain last?

Day-to-day price swings are the least of our concern here at The Fool. Generally speaking, we’re long-term investors. So, we pay far more attention to what a given company is doing, as opposed to what its stock is doing. Of course, taking a closer at particularly big swings can be useful — just in case the long-term thesis has changed.

With that in mind, here are three stocks that were hit hard last week. Will they keep slumping? Or will they bounce right back?

Let’s try to figure it out.

Hydro One

It was a trying week for Hydro One Ltd. (TSX:H) investors, who watched their shares fall about 5%. The big news, of course, was the ousting of CEO Mayo Schmidt (along with the entire board) by Ontario premier Doug Ford.

Bay Street is naturally nervous.

Plenty of uncertainty surrounds the new management search. And there’s worry about what Ford’s intervention will mean for Hydro One’s long-term direction. While Schmidt’s high pay was controversial, he was definitely “all-in” on growth.

That said, Hydro One’s current dividend yield of 4.6% — almost the highest it’s ever been — looks awfully tempting.

Couple that fat yield with a comforting payout ratio of 74%, and you have the makings of an attractive contrarian income play.

Silver miners

Silver companies across the board also had a bad week.

Small-cap miners like Endeavour Silver Corp. (TSX:EDR)(NYSE:EXK) were hit especially hard — down 9% over the past five days. But even larger plays, including Pan American Silver Corp. (TSX:PAAS)(NYSE:PAAS) and First Majestic Silver Corp. (TSX:FR)(NYSE:AG)weren’t spared from the beat-down.

As usual, the move in silver miners was directly related to the move in the price of silver. And on Tuesday, the price of silver fell below $16 per ounce. I’m no chartist, but there’s probably fear that silver will keep falling below this “threshold” level.

Unless you can handle the high volatility of with these silver plays (few can), staying on the sidelines seems prudent.

Marijuana stocks

Big weed stocks Aurora Cannabis Inc. (TSX:ACB) and Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) round out last week’s list of losers. They’re down about 7% and 4%, respectively, over the past five days.

To be sure, there wasn’t any big bad news that caused the declines. It was probably just part of the natural roller coaster of weed stock investing. After all, the stocks have been on a nice tear since May, so profit taking was definitely to be expected.

But where do investors go from here? Tough call.

The cannabis industry’s long-term growth prospects are alluring. But the space is still young, speculative, and volatile. That said, if you were dead-set on jumping in, this recent “technical” pullback might be a good chance to do it.

Foolish bottom line

There it is, Fools: six stocks that suffered notable losses last week.

They might look a bit scary. But as long as you do your homework and proceed with caution, one or two plays might be worth pouncing on.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Pacampara does not own shares of any companies mentioned.    

More on Investing

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

chart reflected in eyeglass lenses
Investing

How Should a Beginner Invest in Stocks? Start With This Index Fund

This Vanguard index fund is the perfect way to start a Canadian investment portfolio.

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

Read more »