If you’ve got $400 to spend and want to make it count, Bombardier (TSX:BBD.B) might be the smartest Canadian stock to pick right now. It’s no speculative penny stock. It’s a major aerospace company with stable contracts, improving numbers, and room to grow if things go well. Let’s look at why this makes sense, but also where to stay sharp.
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About Bombardier
Bombardier designs, builds, and services business jets. Its most recent summary shows it’s doing well despite earlier challenges. Over the fiscal year ended December 31, 2024, Bombardier reported revenues of $8.7 billion and net income of $370 million, with diluted earnings per share (EPS) of $3.40. Its forward price‑to‑earnings (P/E) ratio is now about 18.7, which suggests the TSX stock is reasonably priced given its earnings potential.
You don’t want outdated info here. Bombardier reported first-quarter 2025 revenue at about $1.5 billion, with a backlog of $14.2 billion in orders as of March 31. It also delivered 23 aircraft in that quarter. That backlog matters a lot. It means Bombardier has revenue lined up well into the future.
That backlog and delivery momentum are key. The TSX stock has been investing in its Global 7500 jet, which is flying more often and even setting speed records. It’s also expanding service operations, including new centres and partnerships. Those moves aim to lock in recurring revenue, not just one-time jet sales.
Considerations
Recently, the TSX stock has gained a bit. Over the past 12 months, Bombardier’s share price is up roughly 69%, trading near its 52-week high. That’s a solid run, but analysts see more upside. There are risks. Bombardier carries a fair amount of debt, about $8.2 billion against $1.5 billion in cash. That’s a negative net cash position of roughly $6.7 billion. Higher interest rates could pressure borrowing costs. Also, aircraft manufacturing depends on economic growth; a downturn could impact new orders.
Valuation-wise, the forward price-to-earnings (P/E) of 20.6 offers reasonable entry, given positive earnings and backlog. The trailing P/E is around 42, showing investors expect significant growth. If Bombardier delivers consistent profits and meets its backlog, the upside expectations may pay off.
Buying with $400 gets you roughly two and a half shares at current prices. That’s enough to own a small stake and benefit from any upward movement. Consider adding more later if results hold up and debt remains manageable. On the plus side, Bombardier has strong recent earnings, rising deliveries, solid backlog, and analyst support. On the flip side, high debt and reliance on global economic strength are real concerns. If a recession hits or interest rates stay high, growth could stall.
Bottom line
For a $400 investment, you’re not betting your life savings. You’re buying a slice of a global aerospace player that has recovered from past trouble and is showing momentum. If management executes well, this could be a smart choice. If nothing else, Bombardier represents a bet on Canada’s ability to produce high-end jets and build a global presence. For a small amount of money, you get exposure to that story without overpaying.
So yes, it might just be the smartest Canadian stock to buy with $400 right now. Not because it’s a sure thing, but because the setup balances proven operations, improving earnings, decent valuation, and clear risks. If all goes well, that $400 could turn into something more over the medium term.
