The company has had its fair share of issues over the last few years. With Bombardier, it’s not quite the same story. Bombardier stockĪlthough it’s also dealing with tonnes of headwinds, Bombardier stock is in a much different position than Air Canada.Īir Canada’s headwinds are basically all a result of the pandemic and no fault of the company. Plus, it could improve as we move closer to fully opening up the economy. That’s nearly 20% upside from Friday’s price. Right now, of the 10 analysts that cover Air Canada stock, seven have a buy and three have a hold with an average target price of $29.70. So, it’s only a matter of time before a return to normalcy and recovery for Air Canada stock. However, we’re slowly making progress in Canada toward vaccinating the majority of the population. The same can’t be said for Bombardier stock, which is why Air Canada looks like the better investment today.įor the time being, there are still considerable risks as long as there is so much uncertainty. It’s the biggest company in an industry that was already growing rapidly before the pandemic.Īnd when you think of all the pent-up demand to travel again once it’s safe, many expect the stock to bounce back rapidly once it can resume full-time operations. However, at the same time, Air Canada offers a tonne of potential when it finally can recover. The company is losing tonnes of cash and, therefore, tonnes of value every day. This makes investing in Air Canada stock today difficult, because you don’t want to invest too early. Many people know Air Canada’s story, the pandemic is front and centre of the news every day, and as long as the pandemic is severely impacting the economy, Air Canada will be impacted too. Therefore, to figure out which stock is the better buy today, we must understand the position each stock is in and how much risk to reward there is with an investment today. So, although they may look undervalued, there’s no guarantee they’ll recover. When stocks like Bombardier or Air Canada become cheap, it’s because investors think the stocks have a tonne of risk. However, just because the stocks have the potential for recovery and a massive rally doesn’t mean that these companies are guaranteed to bounce back. Often, you can find some great investments by buying stocks undervalued.Ĭorus Entertainment was one of the cheapest stocks in the middle of 2020, and savvy investors who took advantage of this discount have already seen returns of 110% in just the last seven months. Looking for stocks that are trading undervalued is a great strategy. And because they are so cheap, savvy investors want to know if there is any value in the stocks. Both companies have been beaten up so badly that investors think they look cheap. The main reason why both of these stocks have generally been in the spotlight is not because of positive reasons. Long before the coronavirus pandemic and Air Canada stock’s subsequent selloff, Bombardier (TSX:BBD.B) was consistently one of the most popular Canadian stocks. Air Canada (TSX:AC) is a stock that’s been extremely popular for over a year now.
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