Air Canada (AC.TO)

Another question: In the past six months, which stock has flown higher: Air Canada or American Airlines? Answer: AC-T. In fact, the difference is starker over the past month, with Air Canada soaring 81% and AAL half that. Good or bad, many industries in Canada enjoy little competition and airlines is certainly one of them. In the U.S. airlines can go under, but their competitors will absorb those passengers. In Canada, Air Canada enjoys unrivalled market dominance, especially after buying Air Transat. Another tailwind will come from Ottawa as reports continue to state that Trudeau's Liberals are currently discussing relief to this sector. Even as it soars 5% on good vaccine news days, Air Canada is still roughly half of its pre-Covid high, though in the past month it has shot up from $15 to $27 (as of Dec. 4), past its average price target of $25.78. Overbought? Perhaps, but any aid from Ottawa will propel the airline stocks (including Chorus Aviation) higher. One could argue that regional flights will return sooner than international ones, so Chorus should be charting higher, but investors gravitate to the bigger flyer, AC. Consider this a partial buy. After all, it'll still be some months before mass vaccinations encourage flying volumes to substantially rise.