BLBD - Blue Bird: Ticks A Lot Of Boxes But Wait For Stabilization On The Charts

2024-04-24 01:38:31 ET

Summary

• Blue Bird has generated impressive returns of 92% over the past year, outperforming the US benchmark and other small-caps.
• The company specializes in low or zero-emission school buses, which are gaining traction due to their low total cost of ownership.
• An aging fleet, a ramp-up in federal grants and rebates, and BLBD's new JV designed to make bus ownership more affordable should support business momentum.
• BLBD has already implemented two separate price hikes this year, and that should play a key role in driving strong operating leverage.
• The stock has experienced a volatile few weeks, and we would advise investors to wait for a flattening of the price action before going long.

Introduction

The stock of Blue Bird Corp. ( BLBD ), a specialist in alternate power, school buses (mainly propane and electric school buses) has been on a tear over the past year. At a time when the main US benchmark has delivered commendable returns of 23%, and other small-cap options have only eked out single-digit gains, Blue Bird, with a market cap of roughly $1bn, has generated astronomical returns of 92%....

For further details see: