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%....
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For further details see:
Blue Bird: Ticks A Lot Of Boxes, But Wait For Stabilization On The Charts