Blue Bird Corp: An Under The Radar Electric Vehicle Stock

NASDAQ: BLBD | Blue Bird Corporation News, Ratings, and Charts

Blue Bird Corporation (BLBD) is the biggest EV school bus manufacturer in the United States. It achieved that status within two years of launching its product. The company has delivered 100% electric buses to nearly 25% of the United States over the last two years. BLBD has established a stable supply network within the country and is expanding its market reach.

While most EV stocks with sound business models are trading at sky-high valuations, BLBD is still flying under the radar. In terms of non-GAAP forward P/E, the company has recently been trading at 21.1x, 11.8% lower than the industry average of 23.93x.

However, given BLBD’s expertise in the highly specialized EV school bus market, we believe the company has significant growth potential as the country shifts from internal combustion vehicles to EVs in general. The stock has gained 5.4% over the past year. This, coupled with several other factors, has helped the stock to earn a “Buy” rating in our proprietary rating system.

Here is how our proprietary POWR Ratings system evaluates BLBD:

Trade Grade: A

BLBD has recently been trading above its 50-day and 200-day moving averages of $17.65 and $13.79, respectively, thus indicating a golden-cross uptrend. The stock has gained 92% over the past three months, reflecting solid short-term bullishness.

BLBD’s net income has increased 3% year-over-year to $11.94 million in the fiscal fourth quarter ended Oct. 3, 2020. Its EPS has risen 2.3% from the same period last year to $0.44. Its cash from operating activities has grown 9.3% from the prior-year quarter to $81.76 million over this period.

BLBD has garnered significant market share. Its proprietary all-electric school buses are a big success. It is currently the only company in the market designing electric buses that are suitable for all climates.

Buy & Hold Grade: C

In terms of proximity to 52-week high, which is a key factor that our Buy & Hold Grade takes considers, BLBD’s positioning is not too favorable. It has recently been trading at a 17.5% discount to its 52-week high of $26.88.

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