2 TSX Stocks That Could Double in December

After soaring to incredible heights, these TSX stocks came crashing down. But that leaves a valuable opportunity for investors.

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A market correction is in the works, with the S&P/TSX Composite Index falling slightly from all-time highs. Now up 18% year to date, it made incredible gains. However, there are still worries about how supply chain demands, inflation, interest rates, and more could affect the future of TSX stocks.

Motley Fool investors have a right to be worried, especially as many popular TSX stocks crash all around them. Two of those included Bombardier (TSX:BBD.B) and Goodfood Market (TSX:FOOD).

Both of these TSX stocks remain popular, climbing in the triple digits percentage-wise before dropping about half of their gains, if not more. But these losses may be made up by the end of December.

TSX stock #1: Bombardier

The airline industry TSX stocks continue to improve, and Bombardier stock looks like it’s actually ahead of the bunch. The jet airline company received a bailout before the pandemic even happened. Since then, it dropped its less lucrative revenue streams to focus entirely on jet airplanes.

Before its last quarterly report, it announced a new Challenger 3500 series. Then came a purchase of 20 of those aircraft for $534 million. Bombardier stock also announced the construction of a global manufacturing centre at Toronto Pearson International Airport.

Its last earnings report was impressive, bringing in $1.4 billion in business aircraft revenues, up 17% year over year. This is only likely to improve further with higher vaccination rates and fewer travel restrictions. That includes the opening of the U.S. border. Furthermore, its flight hours actually surpassed 2019 levels.

Yet after climbing 333%, shares of Bombardier stock fell among TSX stocks by 18% as of writing. With a price-to-earnings ratio of 0.82, this makes it a valuable stock. Furthermore, at just $1.82 per share, it could certainly double before the year is out. It already did it this year.

TSX stock #2: Goodfood

Goodfood stock is another of the TSX stocks Motley Fool investors continue to watch. Goodfood stock plummeted after a major earnings miss during the last quarter. Shares are down 28% since earnings and down 62% year to date.

Yet this is now one of the TSX stocks that may be a good time to pick up. Honestly, Goodfood looks like it grew too big, too fast. There were then several factors affecting the stock. First, there were supply chain difficulties investors feared hampered the stock. Second, that pre-pandemic Goodfood stock cannot keep up with the record-setting numbers. And third, higher prices of both food and labour costs.

It seems some of this at least became true. Goodfood stock reported a quarterly loss, with revenues falling with fewer lockdowns. Yet the stock is trying to make some of this back, claiming one-hour free delivery to be coming soon. That on-demand service could jumpstart the company once more.

Analysts looking at TSX stocks believe it was all the issues hitting at once that caused the major issues for Goodfood stock. But now, that puts it in a prime position to be picked up by investors. Across the board, while there has been a downgrade from sector outperform to sector perform, it remains a buy. Furthermore, analysts peg it at a target price of $9.11 as of writing. That would double its current share price.

That said, it needs to prove the company’s on-demand services will work out. The issues plaguing the company today will likely affect it for several quarters. So while it very well could double in December, it will also remain a volatile stock in the short term.

Micro-fulfillment centres in high-density markets, on-demand service, and the winter months could help that volatility.

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 owns shares of BOMBARDIER INC., CL. B, SV and Goodfood Market Corp. The Motley Fool recommends Goodfood Market Corp.

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