The Canadian stock market is continuing to reach new heights in November 2021. The TSX Composite Index is currently trading with nearly 24% year-to-date advances. If the index ends the year near current levels, it will be its highest yearly rise since 2009. While most stocks across sectors are trading in the positive territory in 2021, some stocks have outperformed the broader market by a massive margin. In this article, I’ll talk about two such Canadian stocks that have risen by more than 300% this year so far but still could be worth buying.
Bombardier stock
The shares of Canadian aerospace firm Bombardier (TSX: BBD.B) have soared by 327% to $2.05 per share in 2021 so far. The company has been posting better-than-expected revenue for the last seven quarters in a row. This explains why its stock has yielded a 572% positive return in the last year.
In the September quarter, Bombardier reported total revenue of US$1.45 billion. It was down 59% YoY (year over year) but better than Street analysts’ estimates. For the quarter, the company’s adjusted net loss stood at US$101 million — much narrower than analysts’ expectation of a US$131 million loss.
Mainly favourable market conditions and strong execution have helped Bombardier beat expectations in 2021 so far. Its recently launched Challenger 3500 business jet is gaining popularity, as its order book is filling up quickly. These are some reasons why the company raised its full-year guidance earlier this year and is on track to meet the new guidance.
While Bombardier stock has surged sharply in the last year, given its fast-improving financial growth outlook and progress on deleveraging the balance sheet, the stock is attractive to buy today.
Birchcliff Energy stock
Birchcliff Energy (TSX: BIR) is another great Canadian stock that has soared by more than 300% this year. At the time of writing, its stock was trading at $7.16 per share with about 304% year-to-date gains.
The recent growth trend in Birchcliff’s financials and profitability has been impressive. That’s one of the reasons for its solid gains in 2021. In the June quarter, the company reported revenue of $187.3 million. This figure was more than double compared to its revenue of $78.1 million in Q2 2020 and $93.7 million in Q2 2019 (pre-pandemic levels). Similarly, Birchcliff’s adjusted earnings rose to $0.16 per share in the second quarter from eight cents per share in the previous quarter and adjusted net loss of $0.15 per share a year ago. On the profitability side, its adjusted net profit margin expanded to 23.4% in Q2 from just 14.9% in the previous quarter.
After registering strong financial growth in the first half of the year, the company expects its performance to improve further in the second half due to surging oil prices and the strong performance of its new wells. Street analysts expect these positive factors to help the Canadian energy firm post massive earnings growth in the coming quarters. That’s why I find Birchcliff Energy stock worth buying for the long term, even after its impressive year-to-date rally.
