Bombardier (TSX:BBD.B) stock was up 2.59% in mid-afternoon trading on April 3. Shares have climbed 33% in 2019 so far. However, the stock is still down 26% from the prior year.
Bombardier is a top Canadian manufacturer that specializes in transportation solutions, specifically air and rail. The buildup of economic headwinds has generated turbulence for stocks in this sector. The economy slowed to annualized growth of 0.4% in the fourth quarter in 2018.
The Bank of Canada recently said that it expects investment and broader activity to improve in the second half of this year.
Bombardier and other stocks in this sector will be beneficiaries of rising activity. Shares of Bombardier were boosted after the release of its fourth-quarter and full-year results for 2018.
EBIT before special items surged 42% year-over-year to $1 billion as revenues increased to $16.2 billion for the full-year.
Bombardier reaffirmed its 2019 guidance and is now focused on the ramp-up of the Global 7500 series and the entry-into-service of its Global 5500 and Global 6500 jets.
Currently the stock is trading at the low end of its 52-week range.
Shares of Bombardier had an RSI of 55 as of this writing. That puts the stock in neutral territory in the early spring.
Bombardier has encountered volatility over the past year, but I like the stock priced under the $3 mark. Improving economic conditions should boost sentiment as we await Bombardier’s next quarterly release.
