The Tax-Free Savings Account (TFSA) is a tax-efficient tool to invest in wealth-generating stocks. If you manage to get even one multibagger stock in your TFSA, it can act as a catalyst in your tax-free wealth pool. The TFSA allows your investments to grow tax-free and even withdraw tax-free. However, the market tends to reward those who spend more time in it than those who try to time the market. By far, among the TSX stocks I have covered, three have been my favourite for TFSA wealth creation: Bombardier (TSX:BBD.B), Ballard Power Systems, and HIVE Digital Technologies.
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My #1 TFSA stock to buy and hold forever
Among the three, Bombardier tops the list for its consistency in implementing plans and strengthening its balance sheet. The initial growth trigger was debt reduction, which drove the stock up in 2022 and 2023. The aftermarket service and entry in the defence sector drove the stock in 2024.
And now the catalyst is Global 8000, the flagship product that it brought into operations in 2025. This product is driving up Bombardier’s order book from US$17.5 billion in December 2025 to $21.8 billion in June 2026. Bombardier has the bandwidth to meet this order backlog efficiently. That explains why it gave a 2026 revenue guidance of $10 billion after reporting $9.55 billion in revenue in 2025. The second quarter saw no guidance revisions but gave investors assurance around 2027 revenues.
Does this TFSA stock have more growth left?
Bombardier’s turnaround began in 2020, and the stock soared more than 800% by October 2024. That’s when investors thought the stock had lived its rally. However, the stock surged another 200% from its October 2024 high of over $104 per share. This growth was driven by Global 8000. Today, Bombardier’s share price is at $341 and still rising. This rally has increased its valuations, making value investors cautious.
Trading at 25.75 times its price-to-earnings (P/E) ratio and 2.5 times its price-to-sales ratio, the stock is trading at its highest since its turnaround. Past valuations may not be a good comparison for a turnaround stock, but the growth is real. The 25.75 P/E ratio is supported by a 150% jump in earnings per share (EPS) for the first half of 2026.
Bombardier’s EPS growth will continue to remain high as management has $1.16 billion of unrecognized tax losses from its days of near bankruptcy, which it is claiming gradually. For instance, earnings before tax for the second quarter of 2026 were US$79 million. Bombardier realized $112 million in income tax recovery, increasing its net income from continuing operations to $191 million.
Not to mention, the business jet maker has started buying back shares to further boost EPS. It has yet to realize the earnings from the $21.8 billion order backlog and the shift to a higher-margin product mix.
So, does this stock have more growth left? Definitely. It will see a surge in inventories and working capital in the third quarter and maximum aircraft deliveries in the fourth quarter, when it will realize revenue. The stock could surge as more cash flows into the company with aircraft deliveries.
Is Bombardier stock a buy and hold for the next five years?
Bombardier’s strength lies in its clear roadmap to growth and robust implementation. Until 2024, it released an Investor Day presentation that outlined its five-year roadmap to 2030. The roadmap focused on five things:
- Industry-leading portfolio: Achieved with Global 8000
- Continued Aftermarket expansion: This segment’s revenue grew 14% year over year to US$674 million, increasing its revenue share to 31% in the second quarter of 2026, from 29% a year ago.
- Bombardier Defense growth
- Pre-owned market capture
- Merger and acquisition (M&A)/Partnership opportunities
The last three opportunities are where Bombardier could unlock its next accelerated growth cycle. Until then, it will allocate excess cash to reduce debt and buy back shares. The company reduced its long-term debt to US$4.05 billion in June 2026 from US$5.15 billion in December 2025. The next debt maturity is directly in November 2030.
As long as there is growth, Bombardier will surge. It is expanding in the business jet lifecycle, from manufacturing jets to providing after-market service, modifying the planes for defence use, and refurbishing pre-owned planes.
