Bombardier (TSX:BBD.B) recovered Monday losses on Tuesday, climbing 15.5% as the TSX started to recover.
What happened?
Bombardier stock climbed 15.5% on Tuesday, as the business-jet maker saw a recovery that benefitted the stock. Airline companies in general saw shares fall due to the ongoing Ukraine crisis. European countries, and now the United States, have banned the import of Russian oil and energy products. This would include jet fuel, and it could create inflation just as a recovery is underway.
However, Bombardier stock didn’t seem all that worried. In fact, the company announced it would cease operations with Russia, including technical support. Furthermore, it doesn’t rely on Russian oil to get its planes in the air.
So what?
Bombardier stock remains a stellar deal at these levels. Shares ballooned last year, climbing to a 52-week high of $2.28. Now, shares are down to $1.31, falling to about $1.25 on Monday. The recent climb didn’t just affect Bombardier, but the market in general, as investors believe the worst may be over.
Whether that’s true or not, long-term investors should continue to see growth from Bombardier stock. That makes its current share price trading at 0.51 times earnings an absolute steal — especially with a target price of $2.40 as of writing.
Now what?
Bombardier stock could continue to see a volatile share price for the next year. The pandemic, supply-chain disruptions, surging oil prices and now the Ukraine crisis will have its effect on the stock in turn. However, long-term investors should see this as an opportunity towards a rebound.
Bombardier stock focused on its business jet planes, creating the Challenger 3500, and it is already creating massive sales. The business change seems to be working, with the company blowing past earnings estimates. So, while this next year may be dicey, long-term investors should focus on its long-term growth path as well.
Shares of Bombardier stock are up 14.5% as of writing and 86% in the last year.
