Summary

• The discounted stocks of Bombardier Inc (TSX:BBD) have been popular among investors throughout the pandemic.
• The train and aircraft manufacturer is currently expanding its customer service base to Europe.
• Shares of Cargojet (TSX:CJT), which made a significant recovery from their March lows, are currently trending on the Toronto Stock Exchange.

Many former well-performing stocks lost their ground amid the coronavirus pandemic-triggered market crash in March and are yet to recover. At the same time, there have been those, which not only rebounded from their March lows, but also registered substantial growth in the last seven months. Stocks of both kinds have kindled interest among investors, such as Bombardier Inc (TSX:BBD) and Cargojet Inc (TSX:CJT).

The discounted stocks of Bombardier Inc have been seen high trade volumes for a while now, despite its continuing operational issues. Cargojet shares, on the other hand, grew significantly on the stock market, which reflects in its latest quarterly earnings. Let us take a closer look at these two companies and to understand their performances.

Bombardier Inc (TSX:BBD)
Current BBD Stock Price: C$ 0.345

Bombardier Inc is an established name in the field of rail and aircraft manufacturer. But its botched C7 series deal from 2019 and the damages inflicted by the coronavirus pandemic this year has been rough on this Canadian company.

In its efforts to control costs, Bombardier decided to sell certain segments of its business, including its commercial aircraft wing to Airbus in 2019. But with further economic constrains, Bombardier decided to sell its train division to French company Alstom SA in February this year. That deal was further revised in September, with Alstom buying the train manufacturing at a price reduction of US$ 350 million. Spirit AeroSystems Holdings, which entered a deal to acquire Bombardier’s aerostructure business in 2019, recently expressed “uncertainty” about meeting the deal closure deadline in October 2020.

But some positive things are also coming Bombardier’s way. It recently announced plans of expanding its global customer service, building a wholly-owned service center in Berlin in a tie-up with Lufthansa Technik AG and ExecuJet Aviation Group AG. In September-end, it also entered a 10-year contract to service Bombardier 636 MOVIA metro cars in Singapore.

On Tuesday, October 6, Bombardier said that it added a new e-mobility test and technology centre to its current site in Vasteras, Sweden.

BBD STOCK PERFORMANCE

When the stock markets collapsed back in March, Bombardier stocks tumbled nearly 69 per cent in the span of a month, dropping to a low of C$ 0.43 on March 24. Currently, it records a decline of 82 per cent year-to-date (YTD) and nearly 22 per cent down in the last six months.

In the last 10 days, it accumulated an average trading volume of 5.9 million.

BBD FINANCIAL RESULTS

In its second quarter ending 30 June 2020, Bombardier Inc recorded a 37 per cent year-on-year (YoY) drop in its consolidated revenues of US$ 2.7 billion in Q2 2020. Its net loss stood at US$ 223 million.

The company also posts a whopping 93 per cent YoY decline in its EBIT, amounting to US$ 427 million, in Q2 2020.

Cargojet Inc (TSX:CJT)
Current Stock Price: C$ 205.69

Top Canadian freight airline Cargojet Inc has been riding high on the rising demand of quick online deliveries amid the coronavirus pandemic. Being the chief cargo carrier of tech giant Amazon (NASDAQ:AMZN), which purchased a 9.9 per cent stake in it in 2019, Amazon’s boom in business during the lockdown period quite easily converted into Cargojet’s busy schedule.

Moreover, with passenger airlines being allowed limited flights under lockdown restrictions, Cargojet has been enjoying pretty much a monopoly market over the last seven months.

CJT STOCK PERFORMANCE

Cargojet stocks show a YTD growth of 99 per cent at present. It also posted an impressive climb of 98 per cent in the last six months and 27 per cent in three months.

Since falling to C$ 75.51 on March 19 during the market crash, its lowest level in 2020, Cargojet scrips rose 172 per cent in the last seven months. It has even surpassed its pre-pandemic levels from February.

Currently outperforming the market and ranked high among industrial stocks on the TSX, Cargojet shares have also been investors’ darlings through the COVID-19 crisis. It was also featured among top 10 best performing stocks on the TSX in 2020.

CJT FINANCIAL RESULTS

One of the largest Boeing 767 operators flying for e-commerce, Cargojet garnered a total revenue of C$ 196 million, up 65 per cent YoY, in its in its second quarter ending 30 June 2020. Its gross margin, amounting to C$ 90.7 million, was up an impressive 241 per cent YoY.

In times when most major airlines in Canada were struggling to keep its numbers up, Cargojet’s latest financial results turned heads among investors.

It also pays a quarterly dividend of C$ 0.234, which currently yields 0.455 per cent, as per the data on the TSX.