Blue Bird (BLBD) Stock Declines While Market Improves: Some Information for Investors

In the latest close session, Blue Bird (BLBD) was down 2.03% at $57.44. The stock trailed the S&P 500, which registered a daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.

The school bus maker's stock has climbed by 7.11% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 7.14% and the S&P 500's loss of 3.31%.

Analysts and investors alike will be keeping a close eye on the performance of Blue Bird in its upcoming earnings disclosure. In that report, analysts expect Blue Bird to post earnings of $0.81 per share. This would mark a year-over-year decline of 15.63%.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.56 per share and revenue of $0 million. These totals would mark changes of +4.11% and 0%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Blue Bird. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 7.75% higher. At present, Blue Bird boasts a Zacks Rank of #2 (Buy).

Investors should also note Blue Bird's current valuation metrics, including its Forward P/E ratio of 12.87. This denotes a discount relative to the industry average Forward P/E of 13.31.

We can additionally observe that BLBD currently boasts a PEG ratio of 2.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 0.99 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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