We have recently put together a list of the 12 Affordable EV Stocks Recommended by Hedge Funds. This article will analyze how Blue Bird Corporation (NASDAQ:BLBD) compares to other inexpensive EV stocks.
The acquisition of electric vehicles (EVs) is on the rise in the United States. According to a report by CNBC on March 16, there are nearly 6 million battery EVs and plug-in hybrids currently on the roads. While this figure represents a minor segment of the total vehicle market, it signifies substantial advancement, and automakers remain committed to shifting away from gasoline-powered vehicles. Notably, in 2024, sales of conventional internal combustion engine vehicles fell below 80% for the first time in recent history.
The consistent increase in EV sales indicates that consumer fears surrounding range anxiety are lessening. Nonetheless, the apprehension of battery depletion continues to pose a challenge for the EV sector. The industry is actively tackling this issue by enhancing the number of public chargers and improving charging infrastructure to encourage widespread EV use. Despite these efforts, growth for charging companies is hindered by ongoing political uncertainties.
The previous administration under Trump proposed eliminating federal incentives for EVs and instead focused on advancing oil and gas policy. This has created a tough landscape for EV manufacturers and charging infrastructure providers. Additionally, tariffs imposed on crucial steel and aluminum are further complicating matters for automakers.
Despite these formidable challenges, many experts forecast significant growth for the EV industry as it aligns with global sustainability initiatives and technological innovations. Progress in battery technology and charging infrastructure continues to make EVs increasingly affordable and practical.
Our compilation of the 12 affordable EV stocks to purchase, as per hedge funds, involved identifying major players in the EV market. We analyzed our own rankings alongside financial media sources, ETFs, and other online data to create a list of promising EV stocks. We filtered for stocks trading at less than 20 times their projected earnings as of March 17, 2025. Afterward, we honed in on the top 12 affordable EV stocks that are most favored by institutional investors, utilizing data on hedge fund sentiment from Insider Monkey’s Q4 2024 database, encompassing over 1,000 top hedge funds. Finally, we ranked these 12 EV stocks based on the number of hedge funds that held stakes in them as of Q4 2024.
We value the decisions of hedge funds because our research indicates that mimicking the top stock choices of leading hedge funds can result in outperformance against the market. Our quarterly newsletter has a strategy that selects 14 stocks each quarter, which has resulted in a 373.4% return since May 2014, significantly outpacing its benchmark by 218 percentage points (more details here).
Blue Bird Corporation (NASDAQ:BLBD) is recognized as an affordable EV stock according to hedge fund analysis. Specializing in the manufacturing of electric and low-emission school buses, in Q1 FY2025, Blue Bird Corporation delivered over 130 electric buses and reported a substantial increase in EV orders, supported by initiatives like the EPA’s Clean School Bus Program. As of February 2025, the company had around 1,000 electric buses either sold or in its order pipeline, bolstering its sales projections for 2025.
The company intends to broaden its range of zero- and ultra-low-emission commercial vehicles. At the Work Truck Week 2025 event, Blue Bird Corporation showcased its innovative propane-powered Class 5-6 stripped chassis and an advanced electric step van, with the electric variant expected to become commercially available in Q1 2026.
Overall, BLBD ranks 8th among our curated list of low-cost EV stocks favored by hedge funds. While we acknowledge its investment potential, we believe some AI stocks may yield higher returns in a shorter timeframe. If you’re interested in an AI stock that shows more promise than BLBD, priced at under 5 times its earnings, we suggest reading our report on the most affordable AI stock.
