In the latest trading session, Blue Bird (BLBD) closed at $39.14, marking a -0.58% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.98%.
The school bus maker's shares have seen a decrease of 4.4% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 14.25% and the S&P 500's gain of 0.34%.
The upcoming earnings release of Blue Bird will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.83, reflecting an 8.79% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $355 million, up 11.75% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.88 per share and revenue of $1.5 billion, indicating changes of +12.14% and +10.97%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Blue Bird. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 7.42% rise in the Zacks Consensus EPS estimate. Blue Bird is currently a Zacks Rank #1 (Strong Buy).
Looking at valuation, Blue Bird is presently trading at a Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 11.68, which means Blue Bird is trading at a discount to the group.
We can also see that BLBD currently has a PEG ratio of 0.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.73.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 126, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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