The TSX and the markets as a whole have struggled in 2018, but there’s one stock that has been able to achieve significant growth thus far. A 20% increase in price just three months into the year is an impressive feat, and one that investors shouldn’t ignore.
Bombardier, Inc. (TSX:BBD.B) has been flying high since it announced its partnership with Airbus and the favourable decision it received in its tariff battle with Boeing Co (NYSE:BA) earlier this year. This is not to say that Bombardier is a great investment or that it could continue to soar, instead, the company still has a lot to do to win back investors.
After seeing its share price crash over the years, a rise in price over three months gives investors just a narrow insight into how the company has performed recently. However, if the partnership with Airbus can prove to bring in customers, and it has so far, then it could help repair Bombardier’s image in the marketplace.
The stock is not without risk as it has struggled to turn a profit over the years and revenues have declined for three straight years. If the share price can return to the 52-week high it reached back in February then investors could still cash in on the short-term momentum that has been carrying the stock thus far.
By no means do I see Bombardier as a suitable long-term investment, but in the short term there are gains that can be made, for investors that are willing to take on the risk.
