We came across a bullish thesis on Blue Bird Corporation (BLBD) on Twitter by KyleAdamsStocks. In this article, we will summarize the bulls’ thesis on BLBD. Blue Bird Corporation (BLBD)’s share was trading at $39.14 as of Dec 23rd. BLBD’s trailing and forward P/E were 12.39 and 11.35 respectively according to Yahoo Finance.
A fleet of buses and vans providing cost-efficient transportation services.
Blue Bird Corporation (BLBD) represents a compelling investment opportunity due to its dominant market position and strong growth prospects, regardless of the trajectory of electric vehicles (EVs). While the Trump presidency has created fears of an EV slowdown, these concerns appear overblown, as EVs accounted for just 9% of total bus sales in the past year for the company. Even in a scenario where EV adoption slows, Blue Bird’s leadership in the gas and propane bus markets positions it to capitalize on shifting demand. This diversification ensures the company remains resilient and well-prepared for varying market conditions.
Adding to its appeal, Blue Bird is actively expanding its production capacity, aiming to increase output by 40% in the coming years, which is expected to drive double-digit top-line growth. Despite its robust growth outlook and market leadership, the company’s valuation significantly lags the sector median. This disconnect creates a unique opportunity for investors, as Blue Bird combines superior growth dynamics with an unjustified discount. As capacity expansions take hold and the market recognizes its resilience across fuel types, the stock’s potential for significant re-rating becomes evident. Blue Bird offers a rare chance to invest in a leader poised for long-term success at an attractive valuation.
Blue Bird Corporation (BLBD) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held BLBD at the end of the third quarter which was 24 in the previous quarter. While we acknowledge the risk and potential of BLBD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BLBD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.