What Makes REV Group (REVG) a Good Investment?

Aberdeen Investments, an investment management company, released its “abrdn U.S. Small Cap Equity Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. US small caps experienced a significant drop in Q1 and a lower return than the broader US equities asset class, which also fell. In this environment, Class A shares of the fund returned -3.73% (w/o sales charges) compared to a -9.48% return for the Russell 2000 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, abrdn U.S. Small Cap Equity Fund highlighted stocks such as REV Group, Inc. (NYSE:REVG). REV Group, Inc. (NYSE:REVG) manufactures and supplies specialty vehicles and related aftermarket parts and services. The one-month return of REV Group, Inc. (NYSE:REVG) was 26.83%, and its shares gained 46.31% of their value over the last 52 weeks. On May 15, 2025, REV Group, Inc. (NYSE:REVG) stock closed at $37.82 per share with a market capitalization of $1.95 billion.

abrdn U.S. Small Cap Equity Fund stated the following regarding REV Group, Inc. (NYSE:REVG) in its Q1 2025 investor letter:

“We also initiated REV Group, Inc. (NYSE:REVG), a manufacturer of fire engines, ambulances and other specialty vehicles. We believe operational improvements underway could strengthen the company’s leading position and support continued margin expansion.”

REV Group, Inc. (NYSE:REVG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held REV Group, Inc. (NYSE:REVG) at the end of the fourth quarter which was 16 in the previous quarter. In the first quarter, REV Group, Inc. (NYSE:REVG) generated net sales of $525 million, a decrease of 61 million from the prior year’s quarter. While we acknowledge the potential of REV Group, Inc. (NYSE:REVG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered REV Group, Inc. (NYSE:REVG) and shared Alta Fox Capital’s views on the capital in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.