Blue Bird Stock Declines Outpace Market Trends: What the Numbers Reveal

MevTears · 2025-12-26T05:28:22+00:00

Blue Bird shares fell 2.29%, underperforming the broader market indices. The company will report earnings on November 24, 2025, with expected robust growth. Despite challenges, valuation metrics suggest the stock may be undervalued compared to peers.

MevTears

2025-12-26 05:28:22

Abstract generation in progress

Blue Bird shares experienced a sharper pullback than broader markets in the latest session, closing at $50.00 with a 2.29% decline. This underperformance compared unfavorably to the S&P 500’s 0.92% drop, the Dow’s 1.18% slide, and the Nasdaq’s 0.84% retreat. Over the past month, the school bus manufacturer’s stock has faced steeper headwinds, dropping 5.63% while the Auto-Tires-Trucks sector declined just 1.9% and the S&P 500 gained 1.48%.

Upcoming Earnings Will Be a Critical Catalyst

Investors have a date to circle on their calendars: Blue Bird’s earnings announcement scheduled for November 24, 2025. The company is expected to report quarterly EPS of $0.97, representing robust growth of 25.97% year-over-year. Revenue projections stand at $380 million, indicating an 8.51% increase from the same quarter last year.

For the full fiscal year, consensus estimates point to earnings per share of $4.04 and total revenue of $1.45 billion—reflecting growth rates of 16.76% and 0% respectively compared to the prior year. These figures suggest a company navigating mixed momentum, with strong profitability gains offset by flat topline expansion.

Valuation Metrics Suggest Relative Value

Current trading multiples tell an interesting story about Blue Bird’s market positioning. The company’s Forward P/E ratio of 12.32 sits below its industry average of 13.17, indicating the stock may be trading at a discount relative to peers in the Automotive - Domestic sector. The PEG ratio of 1.34 further supports this valuation narrative, as it sits comfortably below the industry average of 2.68.

Rating and Sector Headwinds

Blue Bird currently carries a Zacks Rank of #3 (Hold), with no analyst estimate revisions over the past month. It’s worth noting that the Automotive - Domestic industry—which encompasses Blue Bird’s business—holds a Zacks Industry Rank of 150, placing it in the bottom 40% of all tracked industries. This sector positioning reflects broader challenges within the automotive supply and manufacturing space.

The divergence between Blue Bird’s individual valuation metrics and its industry’s relative weakness underscores the importance of monitoring both company-specific catalysts and broader sector dynamics in the months ahead.

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