A strong month in December led to the S&P/ASX 200 Index (ASX: XJO) recording a 7.8% return (before dividends) in 2023.
Unfortunately, not all ASX 200 shares were on form over the 12 months, with some recording sizeable declines.
Listed below are the five worst-performing stocks for 2023. Let's see if these dogs of the ASX 200 are buys for the year ahead:
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Core Lithium Ltd (ASX: CXO)
The Core Lithium share price was the worst performer on the ASX 200 in 2023 with a 75% decline. There were a number of catalysts for this sell-off. These include softer-than-expected production guidance, the suspension of its underground development, the potential curtailing of production, and crashing lithium prices.
Chalice Mining Ltd (ASX: CHN)
The Chalice Mining share price was only a fraction behind with a decline of approximately 72% for the period. Investors were heading to the exits last year after the mineral exploration company released its scoping study for the Gonneville Nickel-Copper-PGE Project. Although Chalice Mining has a potential world-class asset, its project timeline spooked investors. It advised that first production is not expected until 2029.
Star Entertainment Group Ltd (ASX: SGR)
The Star share price was out of form and dropped 65% over the 12 months. Investors were selling this casino and resort operator's shares following a significant deterioration in its performance. This ultimately led to the company having to raise $750 million from investors at a big discount.
Sayona Mining Ltd (ASX: SYA)
The Sayona Mining share price wasn't far behind with a disappointing 64% decline in 2023. This was driven by broad weakness in the lithium industry after the price of the battery-making ingredient crashed amid soft demand.
Healius Ltd (ASX: HLS)
The Healius share price was a poor performer over the 12 months, losing approximately 43% of its value. This was driven largely by the healthcare company's heavily discounted capital raising. Healius decided to raise funds to reduce its net debt and reset its balance sheet with appropriate gearing.
Are these dogs of the ASX 200 buys for 2024?
A number of analysts do have buy ratings on some of these ASX 200 shares.
For example, Macquarie has outperform ratings on Sayona Mining and Chalice Mining shares with price targets of 9 cents and $3, respectively.
Over at Morgans, its analysts like Star and have an add rating and 70 cents price target on its shares, and Ord Minnett has a buy rating and lofty $3 price target on Healius' shares.
However, none of the major brokers are bullish on Core Lithium at present despite its massive decline.
