The TSX continues to spike and dip, but some of its constituents keep gaining altitude instead. If you’re chasing high-flying stocks, Bombardier (TSX:BBD.B), Secure Energy Services (TSX:SES), and Endeavour Silver (TSX:EDR) should be on your buy list.
Long growth runway
Bombardier has endured market volatility and continues to fly high. Current investors enjoy a 54.82% year-to-date gain. Also, at $82.38 per share, the total return of this industrial stock in three years is 121.15%. The $8.14 billion manufacturer and seller of business aircraft and structural components has plenty of room to grow.
In the second quarter (Q2) of 2024, revenue increased 32% year over year to US$2.2 billion due to higher aircraft deliveries and increasing service revenues. Notably, net income reached US$19 million compared to the US$35 million net loss in Q2 2023. Management said the focus on business aviation from years ago is paying handsomely.
Bombardier’s president and chief executive officer (CEO), Eric Martel, said, “Our being able to post double-digit growth year over year underscores our focused business model, the strength of our plan and the team’s unwavering ability to execute.” He added that the company is on track to meet its full-year guidance.
Robust industry fundamentals
Secure Energy Services continues to outperform amid an erratic market environment. At $11.83 per share, the year-to-date gain is 27.63%, while the trailing one-year price return is 76.04%. The overall return is higher if you include the 3.38% dividend yield.
The $2.85 billion company operates in the waste management industry, providing various waste solutions and services to energy and industrial customers. It has facilities for waste processing and transfer, metal recycling as well as crude oil and water gathering pipelines, industrial landfills, crude oil terminals and storage.
Secure’s business thrives after the first two quarters this year. In the six months ending June 30, 2024, total revenues climbed 46% year over year to $5.4 billion, while net income soared 410% to $454 million from a year ago.
Its president and CEO, Allen Gransch, credits robust industry fundamentals, favourable weather conditions, and continued operational execution for the strong results. Secure expects an expanded industry activity in the coming years to boost volumes and overall demand for its infrastructure.
Fast-rising miner
Endeavour Silver flies under the radar but is among the fast-rising stocks in the basic materials sector. At only $4.63 per share, the mining stock outperforms the sector (+17.7%) and the TSX (+6.06%) with its 78.08% year-to-date gain.
The $1.15 billion mid-tier precious metal mining company has two operating mines in Mexico that unearth raw silver, five exploration projects, and one development project. Endeavour focuses on silver, one of the world’s most versatile metals with a wide range of industrial applications. Silver accounts for over 50% of the revenue mix.
Management’s business strategy is to balance short-term profitability with long-term investments in exploration and development to extend mine lives and build new silver mines to drive future profitability. However, Endeavour’s profitability and cash flow from operations depend highly on metal prices.
Fortunately, silver and gold prices increased in 2024 due to rising geopolitical tension and the anticipation of falling interest rates.
Potential winners
The year is past the halfway mark, and Bombardier, Secure Energy Services, and Endeavour Silver should maintain upward momentum. All three high-flying stocks could be the winning investments in 2024.
