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Is REV Group, Inc. (REVG) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is REV Group, Inc. (REVG - Free Report) . REVG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 19.87, while its industry has an average P/E of 20.96. Over the past year, REVG's Forward P/E has been as high as 22.80 and as low as 4.84, with a median of 13.25.

We also note that REVG holds a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REVG's PEG compares to its industry's average PEG of 1.10. Over the last 12 months, REVG's PEG has been as high as 1.65 and as low as 0.46, with a median of 1.08.

Finally, investors will want to recognize that REVG has a P/CF ratio of 16.67. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.44. Over the past 52 weeks, REVG's P/CF has been as high as 39.16 and as low as 6.09, with a median of 22.34.

Value investors will likely look at more than just these metrics, but the above data helps show that REV Group, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, REVG sticks out at as one of the market's strongest value stocks.


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