AC, BBD.B & TRZ: Can these TSX industrial stocks fly higher?

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AC, BBD.B & TRZ: Can these TSX industrial stocks fly higher?

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AC, BBD.B & TRZ: Can these TSX industrial stocks fly higher?

Highlights

  • The S&P/TSX Capped Industrials Index is up 4.21 per cent month-to-date
  • A stock mentioned here rose 112 per cent in the last 12 months
  • Another of the below-listed stocks has a return on equity of 306.56 per cent

Lately, the industrial sector seems to be on the rebound as the S&P/TSX Capped Industrials Index is up 4.21 per cent month-to-date. With Spring around the corner and summer coming up, and with Covid-related travel restrictions easing, it is possible there will be an increase in air travel.

With this in view, let’s look specifically at the aviation sector within the industrial sector. Below are three top TSX-listed companies that make for a good watch.

Air Canada (TSX:AC)

Air Canada is the country’s largest airline and with a market cap of C$7.8 billion, it is one of the biggest companies in the S&P/TSX Capped Industrials Index. On Friday, March 4, the AC stock closed at C$21.90.

The pandemic hit the airline industry particularly hard and the AC stock is down 18.5 per cent over the past 12 months but it is up 1.7 per cent over the past three months. The company saw its operating revenue in 2021 rise to C$6.4 billion from C$5.8 billion in the previous year.

Bombardier Inc. (TSX:BBD.B)

Bombardier Inc. is an established name when it comes to aircraft manufacturing, particularly business aircraft and has a market cap of C$2.9 billion. On Friday, its Class B Subordinate Voting Shares closed at C$1.38.

The BBD.B stock rose 112 per cent in the last 12 months and is 119 per cent higher than its lowest cost of C$0.63 during the same period. Its earnings per share (EPS) is C$2.60.

Also read: Is Virgin Galactic (SPCE) a cheap space stock to buy?

Transat A.T. Inc. (TSX:TRZ)

The company operates in the holiday travel and tourism space and owns the Transat and Air Transat brands. It has a market cap of C$175 million.

On Friday, the TRZ stock closed at C$4.64. It is up 15 per cent year-to-date. On June 17, 2021, it touched its 52-week high of C$7.90. The stock has a return on equity of 306.56 per cent.

Also read: Air Canada (AC) triples operating revenues in Q4. A cheap stock to buy?

AC, BBD.B and TRZ market capitalization

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Bottom line

Ahead of the summer vacation season, the above stocks make for an interesting watch. Could the fact that many may not have been able to travel over the pandemic period mean the industry could see a surge?  That is a wait-and-see game.

Investing in stocks merits a lot of research into a company and its sector. An investor ought to be aware of upcoming developments in both the above-mentioned. Furthermore, an in-depth look into the company’s financials and its quarterly performances are also warranted.

Also read: How is Bombardier (TSX: BBD.B) stock doing?

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