Core Viewpoint - REV Group Inc. (NYSE:REVG) has experienced a stock price of $59.88, reflecting a 0.75% decline in the current market session, but has seen a significant increase of 7.10% over the past month and an impressive 116.52% over the past year, raising questions about potential overvaluation despite current performance issues [1]. Group 1: Stock Performance - The current stock price of REV Group is $59.88, down by 0.75% in the current session [1]. - Over the past month, the stock has increased by 7.10% [1]. - In the past year, the stock has surged by 116.52% [1]. Group 2: P/E Ratio Analysis - REV Group has a P/E ratio of 28.46, which is higher than the Machinery industry average P/E ratio of 21.19, suggesting that investors may expect better future performance from REV Group compared to its peers [6]. - A higher P/E ratio may indicate that the stock is overvalued, although it could also reflect investor optimism regarding future performance and potential dividend increases [5][6]. Group 3: Investment Considerations - The P/E ratio is a useful metric for evaluating market performance but should be interpreted cautiously, as a low P/E can indicate undervaluation or weak growth prospects [8]. - Investors should consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [8].

Core Insights - REV Recreational Vehicles Segment, part of REV Group, Inc., achieved successful outcomes at two major annual events: the 56th Annual America's Largest RV Show in Hershey, Pennsylvania, and the Dealer Open House in Elkhart, Indiana [1] Group 1: Event Performance - The combination of strong attendance and compelling product offerings led to solid sales results across the three brands: Fleetwood RV, Holiday Rambler, and American Coach [1] - As of the current date, the three brands have recorded significant sales figures [1]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with REV Group (REVG) currently highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - REV Group has a historical EPS growth rate of 47.8%, with projected EPS growth of 66.8% for the current year, significantly outperforming the industry average of 5.6% [4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for REV Group stands at 4.7%, surpassing the industry average of -7.3%, indicating a strong position relative to peers [5]. - The company's annualized cash flow growth rate over the past 3-5 years is 6.6%, compared to the industry average of 6.5% [6]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for REV Group, with the Zacks Consensus Estimate for the current year increasing by 8.9% over the past month [7]. Group 4: Overall Positioning - REV Group has achieved a Growth Score of B and a Zacks Rank 1, positioning it well for potential outperformance in the growth stock category [9].

Company Overview - REV Group (REVG) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4] Price Performance - Over the past week, REVG shares have increased by 17.5%, significantly outperforming the Zacks Transportation - Services industry, which rose by only 0.44% [6] - In a longer time frame, REVG's shares have risen by 20.68% over the past month, compared to the industry's 4.66% [6] - Over the last three months, REVG shares have appreciated by 43.97%, and over the past year, they have surged by 136.62%, while the S&P 500 has only increased by 9.68% and 20%, respectively [7] Trading Volume - The average 20-day trading volume for REVG is 925,483 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for REVG have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $2.45 to $2.65 [10] - For the next fiscal year, three estimates have also moved upwards without any downward revisions [10] Conclusion - Considering the strong price performance, positive earnings outlook, and high Momentum Style Score, REVG is positioned as a promising investment opportunity [12]

Group 1 - REV Group's stock has increased by 16.9% over the past month and has gained 96.9% since the start of the year, outperforming the Zacks Transportation sector and the Zacks Transportation - Services industry [1] - The company has consistently beaten earnings estimates, reporting EPS of $0.79 against a consensus estimate of $0.63 in its last earnings report [2] - For the current fiscal year, REV Group is expected to post earnings of $2.58 per share on revenues of $2.45 billion, reflecting a 62.26% change in EPS and a 2.76% change in revenues [3] Group 2 - REV Group's valuation metrics indicate a current trading multiple of 24.3X current fiscal year EPS estimates, which is above the peer industry average of 22.1X [6] - The stock has a Value Score of C, Growth Score of B, and Momentum Score of A, resulting in a combined VGM Score of A [6] - REV Group currently holds a Zacks Rank of 1 (Strong Buy) due to favorable earnings estimate revisions from analysts [7] Group 3 - The company is projected to earn $3.5 per share on revenues of $2.61 billion for the next fiscal year, indicating a year-over-year change of 35.85% in EPS and 6.58% in revenues [3] - Investors are encouraged to consider stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which REV Group meets [8]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - REV Group (REVG) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Historical EPS growth for REV Group stands at 47.8%, but projected EPS growth for this year is significantly higher at 60.4%, far exceeding the industry average of 6.5% [5] Group 3: Cash Flow Growth - REV Group's year-over-year cash flow growth is 4.7%, outperforming many peers and contrasting with the industry average of -7.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 6.6%, slightly above the industry average of 6.5% [7] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for REV Group, with the Zacks Consensus Estimate increasing by 4.3% over the past month [9] Group 5: Conclusion - REV Group has achieved a Growth Score of A and a Zacks Rank of 2, supported by positive earnings estimate revisions, positioning it well for potential outperformance [10][11]

Core Viewpoint - REV Group (REVG) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][3]. - The correlation between earnings estimate revisions and stock price movements is strong, with institutional investors using these estimates to assess fair value, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for REV Group indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending October 2025, REV Group is projected to earn $2.55 per share, with a 5% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - REV Group's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings methods [1] - The trend of investing in blue-chip companies has evolved, with a broader portfolio now including various industries and market capitalizations [1] Investment Strategies - The focus on banking, telecommunications, and retail sectors indicates a strategic approach to capitalize on stable and growing industries [1] - The entry into the US market in 2020 reflects a growing interest in international investments, particularly in sectors like banks, hotels, and logistics [1] - Utilizing platforms like Seeking Alpha for analysis demonstrates a commitment to informed decision-making and knowledge sharing within the investment community [1]

Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $644.9 million, up from $579.4 million in Q3 2024, representing a 20.5% increase when excluding the impact of the exited E and C transit bus business [13] - Adjusted EBITDA for Q3 2025 was $64.1 million, compared to $45.2 million in Q3 2024, marking a 66.1% year-over-year increase when excluding the impact of the divested bus business [14][25] - Year-to-date cash flow was strong, with cash from operating activities totaling $164.7 million [23] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales increased to $483.3 million, an 11.8% increase compared to the prior year, with adjusted EBITDA rising by 71.4% to $64.6 million [15][16] - Fire unit shipments increased by 11% and ambulance unit shipments increased by 7% compared to the previous year [6][16] - Recreational Vehicle segment sales rose to $161.7 million, a 9.7% increase, but adjusted EBITDA decreased by 13.8% due to increased dealer assistance and tariff impacts [19][20] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog at the end of Q3 was $4.3 billion, reflecting continued demand for fire apparatus and ambulance units [17][58] - Recreational Vehicle segment backlog declined by 7% year-over-year, indicating soft end market demand [21] Company Strategy and Development Direction - The company is focused on reinvesting in its businesses to drive long-term growth, pursuing opportunistic share repurchases, and maintaining a sustainable dividend [12] - A major facility expansion in South Dakota is expected to increase fire apparatus production capacity by 40%, enhancing delivery times and throughput [8][47] - The company aims to streamline operations and improve cost discipline, with a focus on lean manufacturing and workforce training [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage tariff impacts and maintain strong performance, raising the fiscal 2025 outlook [12][25] - The company anticipates continued demand for its products, despite macroeconomic uncertainties affecting the recreational vehicle market [19][21] - Management highlighted the importance of maintaining competitive lead times and quality in response to market conditions [50][64] Other Important Information - The company completed the sale of its Lance Camper business, streamlining its RV portfolio to focus on motorized RVs [10] - Capital expenditures for the quarter were $11.6 million, with a focus on improving efficiency and quality [23] Q&A Session Summary Question: Were the record EBITDA margins in line with expectations? - Management confirmed that the company is on track with its midterm targets and is pleased with the progression [29] Question: How will tariffs impact the first quarter of fiscal 2026? - Management expects a typical sequential decline in sales of 10-15% in the first quarter due to working and shipping days [31] Question: Are pricing strategies effectively offsetting inflation and tariffs? - Management is actively reviewing pricing strategies to offset inflation and has not yet taken price increases in response to tariffs [33][44] Question: How is the company managing tariff impacts on steel and aluminum? - Management indicated that the expected drag from tariffs remains consistent, with ongoing efforts to minimize impacts through supply chain management [41][42] Question: What is the outlook for the fire business and its capacity expansion? - The South Dakota facility expansion will enhance production capabilities, with full operational capacity expected in 2027 [47] Question: How does the company view pricing competition in the market? - Management noted that they are currently not seeing significant price competition and remain competitive in both price and lead time [62][64] Question: What are the capital deployment plans given strong cash flow? - Management emphasized the importance of internal investments for productivity improvements while remaining opportunistic regarding M&A opportunities [73][75]

Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $644.9 million, up from $579.4 million in Q3 2024, representing a 20.5% increase when excluding the impact of the exited E and C transit bus business [14] - Consolidated adjusted EBITDA increased to $64.1 million from $45.2 million in Q3 2024, a year-over-year increase of 66.1% when excluding the $6.6 million impact from the divested bus business [15][16] - Trade working capital decreased to $191.6 million from $248.2 million at the end of fiscal 2024, primarily due to lower inventory balances and increased customer advances [24] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales were $483.3 million, an increase of 11.8% compared to the prior year, with adjusted EBITDA of $64.6 million, up 71.4% year-over-year [17][18] - Fire unit shipments increased by 11% and ambulance unit shipments increased by 7% compared to the previous year, reflecting operational resilience and increased throughput [6][18] - Recreational Vehicle segment sales rose to $161.7 million, a 9.7% increase, but adjusted EBITDA decreased by 13.8% due to increased dealer assistance and tariff impacts [21][22] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog at the end of the quarter was $4.3 billion, with a decrease in the number of units in backlog by approximately 4% sequentially and 6% year-over-year [19][22] - Recreational Vehicle segment backlog declined by 7% year-over-year, reflecting soft end market demand and dealer caution [22] Company Strategy and Development Direction - The company is focused on reinvesting in its businesses to drive long-term growth, pursuing opportunistic share repurchases, and maintaining a sustainable dividend while evaluating M&A opportunities [13] - A significant investment of approximately $20 million is being made to expand the Spartan Emergency Response facility, increasing fire apparatus production capacity by 40% [8][9] - The company aims to improve operational efficiency and quality through targeted capital investments across its fire and ambulance groups [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage tariff impacts and maintain strong performance, raising the fiscal 2025 outlook based on year-to-date performance [13][27] - The company anticipates continued demand for fire apparatus and ambulance units, with expectations for low single-digit sequential revenue growth in the Specialty Vehicles segment for Q4 [20] - Management acknowledged the challenges in the Recreational Vehicle segment due to macroeconomic uncertainty but remains optimistic about the long-term outlook [21][23] Other Important Information - The company completed the sale of its Lance Camper business, streamlining its RV portfolio to focus on motorized RVs [11] - Year-to-date cash flow has strengthened the balance sheet, allowing for continued investments and enhancing financial flexibility [12] Q&A Session Summary Question: Were the record EBITDA margins in line with expectations? - Management confirmed that they are on track with their midterm targets and are pleased with the progression [31][32] Question: Will the first quarter of fiscal 2026 start slow due to tariffs? - Management expects a typical sequential decline in sales of 10-15% in the first quarter, with incrementals aligning with previous guidance [34] Question: How is pricing being managed in light of tariffs and inflation? - Management is actively reviewing pricing strategies to offset inflation costs but has not yet implemented price increases specifically due to tariffs [36][46] Question: Is the company seeing any impact from steel and aluminum tariffs? - Management indicated that they are managing costs through supplier relationships and have not seen a significant change in expected tariff impacts [41][43] Question: What is the outlook for the fire business and delivery timelines? - Management noted that delivery timelines are improving, and they expect to maintain competitive lead times while managing backlog normalization [51][53] Question: How is the company approaching capital deployment with strong cash flow? - Management emphasized the importance of investing in productivity improvements while remaining opportunistic regarding M&A opportunities [76][78]