BBD.B, BCE and CNQ: Why are these TSX stocks trending hot?

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BBD.B, BCE and CNQ: Why are these TSX stocks trending hot?

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BBD.B, BCE and CNQ: Why are these TSX stocks trending hot?
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Highlights

  • Bombardier (TSX: BBD.B), BCE (TSX: BCE) and Canadian Natural Resources (TSX: CNQ) have been trending hot on the stock market.
  • Bombardier zoomed by over 39 per cent year-on-year.
  • Canadian Natural reported a net income of C$ 3.1 billion in Q1 FY2022.

Bombardier Inc (TSX: BBD.B), BCE Inc (TSX: BCE) and Canadian Natural Resources (TSX: CNQ) began trending hot on the stock market on Thursday morning, May 5.

Notably, all these three TSX players, which appear to have relatively outperformed the TSX 300 Composite Index in the last year, announced their quarterly results for Q1 FY2022. on Thursday

So, let us discuss their quarterly performance in Q1 2022 and find out if these TSX stocks are suitable investment options.

Bombardier Inc (TSX:BBD.B)

Canadian aircraft company Bombardier Inc registered a year-over-year (YoY) decline in its revenue to US$ 1.24 billion in the first three months of Q1 FY2022. The aerospace company saw its adjusted EBITDA rise to US$ 167 million in the latest quarter compared to US$ 123 million in Q1 2021.

Bombardier recorded a net loss of US$ 287 million in Q1 2022 against a profit of US$ 5.07 billion earned a year ago. In contrast, its free cash flows (FCF) grew 578 per cent to US$ 173 million in the latest quarter compared to Q1 FY2021.

Bombardier zoomed by over 39 per cent YoY and slipped by nearly six per cent to C$ 1.245 per share at 10:43 AM EST on May 3. The aircraft stock had a Relative Strength Index (RSI) value of 38.16 this day, according to Refinitiv.

Also read: EMO, ESK, OCO, ELO, and DSV: 5 best TSXV mining stocks under $5

BCE Inc (TSX: BCE)

Telecom giant BCE Inc introduced a three-gigabit per second (Gbps) internet speed for download and upload. The company also signed a strategic agreement with Amazon Web Series to speed up 5G and cloud tech innovation.

On the financial front, the cable operator recorded a YoY surge of 2.5 per cent in its operating revenue to C$ 5.85 billion in the first quarter of FY2022. Notably, the internet service company saw its net profit at C$ 934 million in Q1 FY2022, a YoY spike of 36 per cent. However, its FCF plunged 23.1 per cent YoY to C$ 723 million in the latest quarter.

BCE stock was trading higher at C$ 70.496 per share at 10:52 AM EST on May 5, with a rising RSI value of 47.88 (as per Refinitiv). The telecom scrip shot up by about 19 per cent in a year.

Canadian Natural Resources (TSX:CNQ)

Canadian Natural Resources reported a net income of C$ 3.1 billion in the first three months of fiscal 2022, an increase from C$ 1.37 billion earned in Q1 2021. The energy company increased its adjusted funds flow to about C$ 5 billion in the latest quarter, representing a YoY growth of C$ 2.3 billion.

CNQ stock was trading at C$ 81.95 apiece at 11:12 AM EST on MAY 5 and galloped by over 109 per cent in the last one year. According to Refinitiv, the energy stock held a balanced RSI value of 59.23 this day.

BBD.B, BCE and CNQ: Why are these TSX stocks trending hot?

Bottomline

BCE Inc and Canadian Natural Resources are large-cap stocks and pay dividends, which could fetch passive income to investors. On the other hand, Bombardier Inc is a mid-cap stock that could widen one's exposure to the aerospace and defence industry.

Also read: NTR and IFOS: 2 Canadian fertilizer stocks to buy amid potash deficit 

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.  

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