8 Best EV Stocks To Buy Right Now

6. Blue Bird Corporation (NASDAQ:BLBD)

Number of Hedge Funds Holders: 24

One of the best EV stocks, Blue Bird Corporation (NASDAQ:BLBD) is an American manufacturer of school buses, specializing in low and zero-emission models. Its lineup includes traditional school buses, pupil activity buses, and specialized vehicles like security buses, ambulance buses, and blood donation buses.

The company is committed to innovation and safety and transports around 25 million children daily. It currently operates over 20,000 low and zero-emission buses, including those powered by propane, natural gas, and electricity. In August, the company celebrated a milestone by delivering its 2,000th electric, zero-emission school bus.

For the third quarter of fiscal 2024, Blue Bird (NASDAQ:BLBD) reported net sales of $333.4 million, representing a 13.3% increase from $294.3 million in the same quarter of the previous year. This growth was driven by changes in product mix, price adjustments due to rising inventory costs, and a slight uptick in unit bookings. Bus sales rose by $37.8 million, supported by a 13.2% increase in the average sales price and a 0.7% rise in booked units, despite ongoing supply chain challenges.

Parts sales also saw a $1.3 million increase due to inflation-driven price hikes. Although the total cost of goods sold rose to $264.0 million, it improved as a percentage of net sales from 84.5% to 79.2%. Operating profit reached $39.7 million, significantly up from $19.4 million in the same quarter last year, thanks to a $23.6 million rise in gross profit, despite increasing operating expenses.

On October 9, The Fly reported that BTIG initiated its coverage on Blue Bird (NASDAQ:BLBD) with a Buy rating and a price target of $55. The company ranks among the top three manufacturers of school buses and holds a strong position in the alternative fuel school bus market. According to the firm’s analyst, while Blue Bird also sells traditional diesel buses, it focuses on providing value rather than just selling a high volume of these buses.

Despite the stock having doubled in value over the past year, BTIG remains optimistic about the company. It anticipates growth in the North American school bus market and expects a continued shift toward alternative fuels, which could help the company gain more market share.