CashNews.co
Investors looking to sell losing stocks to offset capital gains in 2024 may want to consider these 31 TSX-listed laggards identified by CIBC Capital Markets.
The last trading day to book losses for the 2024 tax year is Dec. 30. Investors cannot buy the stocks they sell for tax-loss purposes within 30 days of a sale in order to have the loss applied to their capital gains.
CIBC technical analyst Sid Mokhtari’s list of selling candidates this year is shorter than in 2023 and 2022, which spanned 51 and 118 companies, respectively.
This year, four stocks belong to the TSX-60 large-cap index. These include Magna International (MG.TO), CAE (CAE.TO), Nutrien (NTR.TO), and Algonquin Power & Utilities (AQN.TO).
“For our tax-loss basket qualification, we have historically used a combination of a negative year-to-date and quarter-to-date return up to Oct. 15, and a 20 per cent or greater decline from the 52-week high at some point throughout the taxation year,” Mokhtari wrote in a note to clients on Thursday. “Suffice to say, candidates are all below their 200-day average.”
The consumer discretionary category represents the largest component of this year’s list, at 22 per cent. That’s followed by energy (18 per cent) and industrials (17 per cent.)
Among the consumer-focused names, Sea-doo and Ski-doo-maker BRP (DOO.TO), Canada Goose (GOOS.TO), and Magna are the worst performers on a three-month basis.
In the energy sector, Parex Resources Inc. (PXT.TO), Mattr (MATR.TO), and Africa Oil (AOI.TO) were weakest in the 90 days leading up to Oct. 15.
Among the industrials, TELUS International Inc. (TIXT.TO), Ballard Power Systems (BLDP.TO), and Boyd Group Services (BYD.TO) were the worst three-month performers.
Here’s the full list from CIBC Capital Markets:
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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