Air Canada (TSX:AC) & Bombardier (TSX:BBD): Active Industrial Stocks

Summary

• Air Canada stocks are trading with a 10-day average volume of 7 million units. The stock is delivering a triple-digit return on equity.
• Air Canada stocks have gained over 34 per cent in the last one month.
• Bombardier stocks have soared over 62 per cent in the last one month.

Industrial stocks Air Canada (TSX: AC) and Bombardier Inc. (TSX: BBD) have been among the most active stocks on the Toronto Stock Exchange (TSX) throughout 2020, mostly because of their discounted prices. Yesterday’s large-cap stocks suffered major blows amid the pandemic leading to depreciation in their value.

Air Canada recently entered a partnership with Chase and Mastercard to relaunch its U.S. co-brand credit card and accelerate its Aeroplan loyalty program. Chase is likely to unveil the co-branded Aeroplan Credit Card in late 2021.

The global transportation technology company Bombardier rolled out the 5,000th BOMBARDIER FLEXX bogie frame and completed 3000 bogies at its Savli facility in India. Savli facility has only railway vehicle production operations.

Let us look at how these two industrial stocks are faring:

Air Canada (TSX: AC)

Current Stock Price: C$ 26.10

The aviation stocks have swelled more than 34 per cent in the last one month. The airline is now in recovery mode, and its scrips indicate a nearly 44.5 per cent surge in the last 3 months. However, the stock is yet to recover from its losses accrued due to March market crash.

The stock is trading actively on the TSX with a 10-day average volume of 7 million units. It is placed among TMX’s Top Volume stocks with the largest trade volumes in the last 10 days. And its present 30-day average stock trading volume stands at 7.3 million units.

The industrial stock also made it to TMX’s top industrial stocks and top price performers that have traded with the largest price gains in the last 30 days across the market (TSX and TSXV).

The transportation stock’s price-to-cashflow ratio (P/CF) ratio is 22.80, and its price-to-book (P/B) ratio is 4.508. The debt-to-equity (D/E) ratio stands at 2.06. The stock offers a triple-digit return on equity (ROE) and a double-digit return on assets (ROA), as per TMX data.

It has a current market cap of approximately C$ 7.74 billion.

In the third quarter of 2020, the airline’s revenue tumbled C$ 4.773 billion against Q3 2019, led by the COVID-19 pandemic related restrictions.

Bombardier Inc. (TSX: BBD.B) 

Current Stock Price: C$ 0.455 

The manufacturer’s stocks have surged over 62 per in the last one month. The stock has added nearly 5 per cent gains in the last three months. However, the stock is still rebounding from the COVID-19 led meltdown. It has a 10-day average stock trading volume of 6.89 million units. 

The stocks deliver a positive ROE of 28.12 per cent, and its P/CF ratio stands at 12.40, as per data on the TMX portal.  

In the third quarter of 2020, the Aeroplan producer reported total revenues of US$ 3.5 billion, down by 5 per cent year-over-year (YoY), led by pandemic-related operation shutdowns. Its business aircraft revenues touched US$ 1.2 billion on 24 supplies, a rise of 10 per cent YoY, guided by Global 7500 deliveries during the third quarter of 2020.