At Extreme Investor Network, we keep our finger on the pulse of the latest trends in the finance world, bringing you insights and analysis that you won’t find anywhere else. Today, we’re diving into the fascinating world of electric school buses and the unexpected company leading the charge.
Miami-Dade County Public Schools in Florida recently made headlines by acquiring 20 electric school buses. This move signifies a larger trend towards electrification in the transportation sector, with significant implications for both the environment and the economy.
What you might not know is that the best-performing electric vehicle stock this year is not a flashy tech company, but rather a school bus manufacturer. Blue Bird Corp., with a market cap of around $2 billion, has seen its stock surge an impressive 116% year-to-date. This growth is largely due to Blue Bird’s expansion into the electric bus market, fueled by a $5 billion government program aimed at replacing diesel school buses with electric ones.
Unlike many other EV stocks that have struggled this year, Blue Bird’s revenue and profits have been on the rise. In its recent fiscal second-quarter earnings report, the company reported a 15% year-over-year revenue growth and profits more than tripled to $0.89 per share. Blue Bird set a record by selling 210 electric school buses in the quarter, with a backlog of 500 more orders.
The driving force behind Blue Bird’s success in the EV market is the US Environmental Protection Agency’s Clean School Bus Program, which provides funding to replace diesel buses with electric ones. This program has boosted Blue Bird’s electric school bus revenue to 9% of its total, up from 6% the previous year. With electric buses commanding a selling price of over $300,000 compared to $100,000 for traditional buses, Blue Bird stands to benefit greatly from this shift in the market.
Analysts at Needham see continued growth for Blue Bird in the electric bus sector, with strong demand from school districts looking to upgrade their fleets. This growth potential has led Needham to rate Blue Bird as a “Buy” with a price target of $52.
At Extreme Investor Network, we’re excited to see the transformation happening in the electric vehicle market, and we’re here to help you navigate the opportunities that arise. Stay tuned for more exclusive insights and analysis from the team at Extreme Investor Network.