REV Group, Inc. (REVG) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of REV Group (REVG)? Shares have been on the move with the stock up 1.6% over the past month. The stock hit a new 52-week high of $51.37 in the previous session. REV Group has gained 56.9% since the start of the year compared to the -6.5% gain for the Zacks Transportation sector and the -1.3% return for the Zacks Transportation - Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 4, 2025, REV Group reported EPS of $0.7 versus consensus estimate of $0.59 while it beat the consensus revenue estimate by 5.44%.For the current fiscal year, REV Group is expected to post earnings of $2.45 per share on $2.41 in revenues. This represents a 54.09% change in EPS on a 1.07% change in revenues. For the next fiscal year, the company is expected to earn $3.36 per share on $2.6 in revenues. This represents a year-over-year change of 37.01% and 7.89%, respectively.Valuation MetricsThough REV Group has recently hit a 52-week high, what is next for REV Group? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.REV Group has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 20.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.8X. On a trailing cash flow basis, the stock currently trades at 26.1X versus its peer group's average of 7.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, REV Group currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if REV Group meets the list of requirements. Thus, it seems as though REV Group shares could have a bit more room to run in the near term.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report REV Group, Inc. (REVG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks