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Stock surge of REV Group today explained

Stock prices for REV Group experienced a significant rise of up to 22% during the morning trading session on Wednesday.

Stock surge for REV Group today explained
Stock surge for REV Group today explained

Stock surge of REV Group today explained

REV Group (REVG), an American manufacturer specializing in fire and emergency, commercial, and recreational vehicles, has announced strong fiscal third-quarter results. The company's shares, trading on the NYSE, have soared by about 70% this year.

Despite these impressive figures, REV Group's stocks are not included in The Motley Fool Stock Advisor's list of the 10 best stocks for investors to buy now. The Motley Fool Stock Advisor's list, available only to members, might contain stocks with potential for high returns in the coming years.

REV Group's sales growth was driven by emergency vehicles and recreational vehicles, with adjusted earnings per share soaring 65% year over year. The strong results led the company to increase its full fiscal year sales, net income, and free cash flow outlook. REV Group's management sees potential free cash flow of up to $150 million for the year, an increase from their previous estimate of up to $120 million.

In a recent development, REV Group announced plans to expand capacity at its Spartan Emergency Response plant in South Dakota, investing $20 million to increase production capacity by 40%.

Investors have been optimistic on growth and the lack of tariff concerns, as REV Group's entire manufacturing footprint is in the U.S. Tariffs are not a concern for REV Group due to its domestic manufacturing facilities in 14 states.

However, it's worth noting that the Motley Fool Stock Advisor analyst team did not include REV Group in their list of the 10 best stocks. The team's list includes the "Ten Titans" stocks considered top picks for investors, consisting of Broadcom, Oracle, Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla.

Investors might want to wait for a pullback before jumping in after the strong earnings report. The Motley Fool Stock Advisor has previously recommended stocks like Netflix and Nvidia, which have shown significant returns. The total average return of Stock Advisor is 1,042%, a market-crushing outperformance compared to 183% for the S&P 500.

REV Group's ticker symbol on the NYSE is REVG.

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