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Summary
- Canada’s industrial sector suffered gravely last year due to the coronavirus outbreak.
- As the Canadian economy recovers, the sector could rebound as well.
- A report by International Monetary Fund (IMF) predicted that the country’s economy is likely grow by five per cent this year.
Canada’s industrial sector suffered gravely last year due to the coronavirus outbreak. But as the Canadian economy recovers, the sector could rebound as well.
A report by International Monetary Fund (IMF) predicted that the country’s economy is likely grow by five per cent this year. With that in mind, let’s explore two industrial stocks – WSP Global Inc. (TSX:WSP) and Bombardier Inc.(TSX:BBD.B).
WSP Global Inc. (TSX:WSP)
WSP Global Inc, an engineering consulting services provider, claims to be committed to Canada's Net Zero Emissions 2050 target. Since Canada is focusing on building a green economy, it might benefit from it.
The Montreal-based company’s market cap stands at C$ 15 billion. It offers a return on equity of 7.45 per cent, while its price-to-book ratio stands at 3.575.
1-year chart of stock performance of WSP Global (Source: EODHD/Others/Thomson Reuters)
WSP Global distributes a quarterly dividend of C$ 0.375, and it currently registers a dividend yield of 1.163 per cent. The industrial stock grew by 8.7 per cent in the last three months and soared by 46.4 per cent over the past year.
In the fourth quarter that wrapped up on December-end 2020, WSP Global’s revenues increased to C$ 2,248.3 million, up from C$ 2,209.3 million in Q4 2019. Its diluted net earnings per share stood at C$ 0.61 in Q4 2020.
Bombardier Inc. (TSX:BBD.B)
Canadian business jets manufacture Bombardier Inc has a market cap of C$ 1.95 billion and offers a return on equity of 9.92 per cent, according to the data from TMX.
The Montreal-based firm clocked a revenue of US$ 5.6 billion from its business aircraft activities in fiscal 2020, recording an increase of 3 per cent year-over-year (YoY). While the worth of its current assets increased to US$ 16.6 billion, Bombardier also reduced its net loss to US$ 568 million in 2020.
Bombardier stock, meanwhile, ballooned by 114.3 per cent in the last one year. Its year-to-date (YTD) growth is at 87.5 per cent.
1-year chart of stock performance of Bombardier (Source: EODHD/Others/Thomson Reuters)
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
