REV Group (REVG) Surged Following Improved Results

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.46% compared to a 12.60% return for the Russell 2000 Value Index. In the first three quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s focus is on a diligent, disciplined, and patient process, it expects the fund to outperform in down markets and trail in speculative markets. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, the FPA Queens Road Small Cap Value 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 -18.15%, and its shares gained 57.50% of their value over the last 52 weeks. On November 21, 2025, REV Group, Inc. (NYSE:REVG) stock closed at $50.32 per share, with a market capitalization of $2.456 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding REV Group, Inc. (NYSE:REVG) in its third quarter 2025 investor letter:

"REV Group, Inc. (NYSE:REVG) is a specialty vehicle manufacturer. Most of the company’s value is in its municipal business where REV Group makes fire trucks and ambulances. The company has been reporting significant backlog and pricing growth in concert with Pierce Manufacturing (owned by Osh Kosh (OSK), another Fund holding), their primary competitor in the fire truck business. CEO Mark Skonieczny has led a significant operational rest ructuring, sold off the less profitable bus business , and used the proceeds to buy b ack stock at attractive prices. The stock price has followed improving results and performed well."

REV Group, Inc. (NYSE:REVG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held REV Group, Inc. (NYSE:REVG) at the end of the second quarter, which was 21 in the previous quarter. In the third quarter, REV Group, Inc. (NYSE:REVG) generated net sales of $644.9 million, compared to $579.4 million in Q3 2024. While we acknowledge the potential of REV Group, Inc. (NYSE:REVG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered REV Group, Inc. (NYSE:REVG) and shared FPA Queens Road Small Cap Value Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.