REV Group is a leading manufacturer of specialty vehicles like fire trucks, street sweepers, school buses, and more.
They provide every type of vehicle a municipality needs. Sounds like a good business, right?
In the past few years, the company has been trying to divest from several segments, such as school buses, because of slowing sales growth and margin compression.
Instead of school buses, they've aggressively leaned into the fire and emergency vehicle segments. This has boosted profitability, and the market loves it!
REVG just closed at a fresh all-time high on the heels of a mixed report:
As you can see, the market punished the stock for reporting earnings during its prior drawdown from 2018-2020.
In the nearly five years since it made its all-time low and embarked on a new uptrend, the market has rewarded the stock for reporting 65% of the time.
What's more important to us is this quarter's report was the catalyst for resolving a multi-year accumulation pattern.
Are you adding fire truck exposure to your portfolio? Let me know 🙉
