Blue Bird (BLBD) Ascends While Market Falls: Some Facts to Note

In the latest close session, Blue Bird (BLBD) was up +1.88% at $56.33. The stock outperformed the S&P 500, which registered a daily loss of 0.37%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 0.84%.

Shares of the school bus maker witnessed a loss of 8.73% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its loss of 6.73%, and the S&P 500's loss of 3.7%.

The investment community will be closely monitoring the performance of Blue Bird in its forthcoming earnings report. The company is expected to report EPS of $0.81, down 15.63% from the prior-year quarter.

BLBD's full-year Zacks Consensus Estimates are calling for earnings of $4.56 per share and revenue of $0 million. These results would represent year-over-year changes of +4.11% and 0%, respectively.

Any recent changes to analyst estimates for Blue Bird should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.75% higher. Currently, Blue Bird is carrying a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Blue Bird is currently being traded at a Forward P/E ratio of 12.14. This represents a discount compared to its industry average Forward P/E of 13.79.

Also, we should mention that BLBD has a PEG ratio of 2.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 0.96 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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