10 Best Heavy Equipment and Industrial Machinery Stocks to Buy

6) Blue Bird Corporation (NASDAQ:BLBD)

Number of Hedge Fund Holders: 25

Blue Bird Corporation (NASDAQ:BLBD) designs, engineers, manufactures, and sells school buses in the United States, Canada, and internationally.

Blue Bird Corporation (NASDAQ:BLBD)’s commitment to EV production is the cornerstone of its growth strategy. The EV initiative continues to play a critical role in bolstering the company’s EBITDA momentum, together with other industrial factors like pricing, volume, and cost management. Wall Street opines that Blue Bird Corporation (NASDAQ:BLBD) remains well-positioned to capitalize on the growing demand for electric school buses.

With school districts across the US increasingly prioritizing environmentally friendly transportation options, Blue Bird Corporation (NASDAQ:BLBD)’s early entry into the EV market should prove to be a significant competitive advantage.

As per the World Resources Institute, the total number of electric school buses should continue to grow under a $1 billion fourth round of Clean School Bus Program funding announced in September 2024, and the EPA’s new Clean Heavy Duty Vehicles Grant Program, which has been established under the Inflation Reduction Act of 2022 and focuses on transitioning heavy-duty vehicles (including school buses) to zero-emission models.

Blue Bird Corporation (NASDAQ:BLBD) released its full-year results for fiscal 2024. Its EV backlog grew to a record level of ~630 buses, worth approximately $200 million. This was driven mainly by the ramp in orders from rounds 2 and 3 of the EPA’s Clean School Bus program. Apart from providing revenue visibility, it also reflects healthy market demand and significant growth in EV orders.