Got $1,000? 1 Unstoppable Growth Stock to Make You Richer

If you’re looking for a cheap growth stock with billions in backlog potential, then you definitely want to consider Bombardier stock as a long-term hold.

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It’s becoming harder for Motley Fool investors searching for growth stocks. Especially in this current market, where the S&P/TSX Composite Index continues to fall, dropping over 3% in the last month.

But that doesn’t mean growth stocks don’t exist. In fact, analysts have been looking at a several options for investors to consider. Today, I’m going to cover one of them, arguing that Bombardier (TSX:BBD.B) could be a strong win through 2021 and beyond.

Regaining confidence

Bombardier stock has been gaining back investor trust thanks to several moves in the past few years. Management announced last week that it’s ordering 20 Challenger 3500 private jets. This comes after redesigning the model, showing investors that this was indeed the right move for the growth stock.

The deal is set to be worth a whopping US$534 million. The transaction was announced just days after Bombardier stock announced new plans for the Challenger 3500, an update to the Challenger 350.

But it’s more than these new jets that have investors gaining trust in the stock again. Bombardier recently stated that management is focusing on its private jet line. It sold its train unit and commercial aircraft operations to achieve this. With this recent buy on the book, analysts have been upgrading the growth stock to “outperform.”

Lines up future growth

Such a purchase made right after the Challenger 3500 upgrade is significant for investors to consider. This sets up the growth stock for at least a “three-year window” that, according to analysts, will help the company bolster its balance sheet.

Analysts expect the current demand to only grow further, and even expect a backlog from the current upgrade. This could happen even in the next few weeks, as there is an exhibition coming up where Bombardier stock is scheduled. Furthermore, there is an earnings report for investors to watch for on October 28.

One analysts predicted a backlog could reach $12.6 billion in 2021, and $13.7 billion in 2022. And with far less risk from the company focusing on the private jet sector, there is likely to be fairly significant growth from this growth stock in the next year and beyond.

Strong buy

If Motley Fool investors were to buy up Bombardier stock today, analysts give it an average potential upside of 30% for the next year. This comes on top of growth of 550% in the last year alone! And growth of 15% in the last month, much of it coming from the recent announcement made by the company.

Yet if you look back, Bombardier is still a strong growth stock to consider as a long-term hold. It’s come a long way, and the focus on this sector and potential for billions in backlog bode well for its future. Yet it’s still a solid deal with a trailing P/E ratio of 0.84 as of writing.

With sales already growing and set to explode in the years to come, you may see shares easily double in the next year and beyond. And for $2.21 per share, you won’t need much of a stake to get there with this growth stock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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