3 TSX Stocks Near 52-Week Lows

In August, top TSX stocks like Barrick Gold (TSX:GOLD)(NYSE:ABX) are trading near 52-week lows.

These days, you won’t find too many stocks trading near 52-week lows. Markets have mostly been hot ever since April 2020, and despite occasional interruptions, the trend looks set to continue. Unprecedented monetary and fiscal stimulus have been supporting the markets ever since COVID first hit, and a string of tech earnings in July improved investors’ sentiment.

So, the stock market rally may continue. Nobody knows how long it will go on for, but it would be unwise to expect a major dip-buying opportunity in the next month or two. That doesn’t mean there aren’t opportunities to buy individual stocks on the dip, though. There are actually plenty of individual stocks trading at or near 52-week lows that you can buy after months of losses. The fact that they’re at 52-week lows doesn’t mean they’re bargains. But they could be a good place to start your search for bargains. In this article, I’ll explore three such stocks worth considering in August.

Barrick Gold

Barrick Gold (TSX:GOLD)(NYSE:ABX) is a Canadian gold mining stock that currently trades for $20.19. Its 52-week low was about $18.50; its high was around $30.50. This stock is definitely trading near the bottom of its range for the year. That might look like a buying opportunity. Unfortunately, there are genuine reasons for this stock to be sinking. Gold prices are in a downtrend, and Barrick makes a large share of its money by mining and selling gold. When gold is cheap, it gets harder for Barrick to turn a profit. In its most recent quarter, it did turn a profit, but earnings declined. Still, it’s a beaten-down stock that could rise if demand for gold picks up again.

CN Railway

Canadian National Railway (TSX:CNR)(NYSE:CNI) is a Canadian railway stock currently trading at about $134. Its high for the year was about $150; its low was $126. This stock isn’t exactly touching its 52-week low, but it’s on the lower end of its range. CNR inexplicably rallied amid the COVID-19 pandemic, reaching all-new highs. Earnings declined in 2020, but the stock rallied anyway. That may have been due to investors rushing into a stock seen as being stable. Later, when the pandemic began to wane, CNR fell, despite rising earnings. It’s not the easiest price action to explain, but CN has a long history of coming back from economic downturns bigger and better than ever.

Facedrive

Facedrive (TSXV:FD) is a Canadian tech stock that trades for about $8.35 right now. Its high for the year was about $60. The company offers ride-sharing services similar to those of Uber and Lyft, but with environmental incentives to boot. Facedrive recently branched out into grocery delivery and medical tech. The company’s mission is hard to pin down, and with the grab bag of popular causes it targets, it might be trying to trigger buying by ESG fund managers. The company does not make its financial statements easy to find on its website. It seems investors are growing weary of Facedrive’s opacity and vague corporate mission. But if you’re drawing up a list of stocks at 52-week lows to begin a bargain hunt, FD is a stock you could include on it.

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 Andrew Button owns shares of Canadian National Railway. The Motley Fool recommends Canadian National Railway and Uber Technologies.

More on Tech Stocks

investment research
Tech Stocks

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

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

An investor uses a tablet
Tech Stocks

Canadian Tech Stocks to Buy Now for Future Gains

Not all tech stocks are created equal. In fact, these three are valuable options every investor should consider.

Read more »

dividend growth for passive income
Tech Stocks

2 Rapidly Growing Canadian Tech Stocks With Lots More Potential

Celestica (TSX:CLS) and Constellation Software (TSX:CSU) are Canadian tech darlings worth watching in the new year.

Read more »

BCE stock
Tech Stocks

10% Yield: Is BCE Stock a Good Buy?

The yield is bigger than it's ever been in the company's history. That might not be a good thing.

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »