Why Bombardier could be the best stock to buy in January

Why Bombardier could be the best stock to buy in January

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Bombardier (TSX:BBD.B) is a leading manufacturer of business jets. The company has evolved in a very good way from where it was ten years ago. In fact, there is still significant upside for investors looking to position themselves early in the new year.

Here’s a look at the company, what’s changed and why it’s important this month.

Business snapshot

Let’s state the obvious first. This is not the Bombardier of ten years ago. The company is no longer burdened with staggering debt or multiple unrelated business units that were not generating profits.

The stock price has also gone from a penny stock on the verge of being delisted to a market darling trading above $270 per share. That includes a gain of almost 200% over the past twelve months.

Today’s Bombardier focuses solely on the fact that it is an industrial manufacturer of business jets. No more commercial planes or trains.

And the demand for business jets continues to rise.

Bombardier’s highly successful Challenger and Global series jets are a major reason for this spike. In recent years, the company has released the long-awaited and updated models of these jet aircraft, which not only broke numerous records, but also brought Bombardier’s order book to a new level.

Bombardier’s new generation of jets

Bombardier’s latest aircraft are often seen as a new generation of aviation thanks to their growing list of achievements.

That includes the Global 7500 jet, which is widely considered one of the most decorated business jets ever. The jet set distance and speed records on long-haul business routes such as New York-London and Tokyo-Los Angeles, with average speeds of more than 1,000 km/h.

The Global 7500 even broke the speed record for business jets from Los Angeles to New York, completing the route in 3 hours and 54 minutes.

The plane also holds an ultra-long-range record, flying non-stop from Sydney to Detroit.

The Global 8000 has a similar distinction, especially in terms of speed. The aircraft has a top speed of almost Mach 0.95, making it the fastest civilian aircraft since the end of the Concorde era.

Those records are more than bragging rights. They symbolize long-term demand, product differentiation and fast deliveries.

What about the results?

In the third quarter of 2025, Bombardier delivered 34 jets, up from 30 the year before. This is significant because the old Bombardier of a decade ago was known for slipping on deliveries.

That increase in deliveries resulted in 11% revenue growth and allowed Bombardier to exceed expectations.

In fact, the company has an order book of no less than $16.1 billion over several years. Bombardier’s free cash flow is also growing and is expected to reach $1.5 billion by the end of the decade.

Why January?

Despite Bombardier’s stellar performance, there is still significant upside for investors. For investors looking for growth in a resilient sector that continues to outperform its peers, Bombardier is at the top of every investor’s shopping list.

Add to that the supply momentum the company has shown and the potential boost from the rate cuts expected this year, and you have a solid option for any well-diversified portfolio.

Buy it, hold it, and let Bombardier’s momentum work in your favor this year.

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