Blue Bird Corp

BLBD

Market cap $1.75B

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Investors interested in stocks from the Automotive - Domestic sector have probably already heard of Blue Bird (BLBD) and Tesla (TSLA). But which of these two companies is the best option for those looking for undervalued stocks?

Here is how Blue Bird (BLBD) and Byd Co., Ltd. (BYDDY) have performed compared to their sector so far this year.

Blue Bird delivered record Q3 sales with continued margin strength, driven by strong bus volumes, higher pricing, and resilient demand despite tariff headwinds. BLBD's backlog remains robust with 3,900 units, supporting continued topline growth into FY25 despite near-term order softness from tariff uncertainty. Investments in new facilities, product innovation, and federal EV funding position BLBD for long-term growth and market share gains beyond traditional buses.

Blue Bird's growth is expected to accelerate with school bus sales expected to return to pre-pandemic levels in CY 2026, indicating an acceleration in the current replacement cycle. State-level laws mandating zero-emission school buses over the next decade present a long-term tailwind to Blue Bird's EV bus sales. Blue Bird's commercial chassis venture expands its TAM significantly and could boost its growth in the long-term given the potential pent-up demand for new commercial vehicles.

With EVs and AVs gaining momentum, QS, BLBD and NSANY are powering ahead with breakthroughs shaping the future of mobility.

Do you have more faith in DuPont analysis than in simple ROE calculation? Tap Casey's General Stores (CASY), Blue Bird (BLBD), Global Industrial Company (GIC), Toast (TOST) and Ubiquiti (UI).

Even with EV credit sunsets, tariff pressures and tight supply, BLBD and XOS show growth and stand tall in the struggling Domestic Auto industry.

Explore the exciting world of Blue Bird (BLBD 0.47%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!

Investors interested in Automotive - Domestic stocks are likely familiar with Blue Bird (BLBD) and Tesla (TSLA). But which of these two companies is the best option for those looking for undervalued stocks?