1 Magnificent Airline Stock Down 14% to Buy and Hold Forever 1 Magnificent Airline Stock Down 14% to Buy and Hold Forever
Amy Legate-Wolfe
4 min read Bombardier (TSX:BBD.B) has been through a tumultuous journey in recent years. Yet its recent dip in stock price offers a promising entry point for investors looking to hold a stock with long-term potential in the aerospace sector. Despite a decline of over 7% recently and 14% from highs, Bombardier stock’s fundamentals and growth strategies suggest it could be a stellar investment for those with a patient, forward-looking mindset.
In its most recent earnings report for the third quarter (Q3) of 2024, Bombardier stock delivered impressive results, with revenues reaching $2.07 billion, exceeding analysts’ expectations of $1.79 billion. That represents a robust 12% year-over-year growth, primarily driven by the strength of its services division. This saw a 28% increase in revenue to $528 million. The number of aircraft delivered was 30, which was slightly down from the previous year’s 31 due to an 18-day strike at one of its Canadian plants. Yet the resilience shown in maintaining production amid challenges speaks volumes about Bombardier stock’s operational capabilities. Looking ahead, Bombardier stock plans to deliver between 150 and 155 aircraft in 2024, a figure that underscores its optimism about market demand and its production capabilities. The company is also exploring opportunities in the defence sector, which, alongside services, is less capital-intensive but significantly more lucrative. These expansions align with global trends as governments and corporations seek advanced aerospace solutions. By tapping into these high-margin sectors, Bombardier ensures it remains competitive and relevant in an evolving market.
Bombardier stock’s recent price dip should be seen as a buying opportunity rather than a red flag. The stock has a solid track record of financial performance, a strategic pivot towards high-margin sectors, and a robust outlook supported by institutional and analyst confidence. Thus, Bombardier stock is well-poised to be a strong airline stock to buy now and hold forever. For investors seeking exposure to the aerospace industry’s long-term growth, Bombardier offers a compelling mix of value, growth, and innovation.