REV Group Shares Soar 0.98% to 2025 High

REV Group (REVG) shares rose to their highest level since January 2025 today, with an intraday gain of 0.98%.

The strategy of buying REVG shares after they reached a recent high and holding for one week resulted in a 128.66% return over the past five years, significantly outperforming the benchmark return of 39.28%. The excess return was 89.37%, with a CAGR of 43.51%. Although the strategy had a maximum drawdown of -28.50% and a Sharpe ratio of 0.82, the high volatility of 53.23% indicated a challenging risk environment. Overall, the strategy demonstrated strong returns but came with considerable volatility and risk.

REV Group has been achieving higher returns from the same amount of capital, contributing to a remarkable 771% total return over the last period. This improved return trend has been a significant factor in the company's recent stock performance.

The company's shares have also crossed above the average analyst 12-month target price of $34.62, indicating strong market sentiment and potential for further growth. This milestone has likely contributed to the recent surge in REV Group's stock price.

Despite these positive developments, REV Group is still trading significantly below its estimated fair value of $48.99. This discrepancy suggests that the company may be undervalued based on discounted cash flow analysis, presenting a potential opportunity for investors.

Additionally, REV Group completed the sale of its Transit Bus Business, ENC. This strategic move could impact the company's financials and stock performance in the coming months, as the proceeds from the sale are reinvested into other areas of the business.