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Should You Investigate Blue Bird Corporation (NASDAQ:BLBD) At US$20.74?

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While Blue Bird Corporation (NASDAQ:BLBD) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NASDAQGM, rising to highs of US$27.54 and falling to the lows of US$19.25. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Blue Bird's current trading price of US$20.74 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Blue Bird’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Blue Bird

Is Blue Bird still cheap?

Great news for investors – Blue Bird is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $32.84, but it is currently trading at US$20.74 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Blue Bird’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Blue Bird?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 53% over the next year, the near-term future seems bright for Blue Bird. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since BLBD is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on BLBD for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BLBD. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you want to dive deeper into Blue Bird, you'd also look into what risks it is currently facing. When we did our research, we found 4 warning signs for Blue Bird (1 is potentially serious!) that we believe deserve your full attention.

If you are no longer interested in Blue Bird, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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