Rev Group (REVG) is positioned for a possible breakout above a buy point with fiscal fourth-quarter earnings and revenue due before the stock market opens Wednesday.

Analysts expect Rev Group Q4 EPS to fall more than 7% to 49 cents with sales totaling $603 million, marking a 13% decline compared to a year ago. For the full fiscal year, Rev Group earnings are forecast to jump 16% to $1.58 per share while revenue is predicted to drop 10% to $2.38 billion, according to FactSet.

Brookfield, Wis.-based Rev Group manufactures ambulances, buses, firefighting vehicles, recreational vehicles and other specialty vehicles. REVG owns brands that include American Coach, Fleetwood RV, Holiday Rambler, Renegade RV and Lance.

Rev Group stock fell 0.7% to 29.64 on the stock market today. The stock is testing support at its 10-week moving average after briefly topping what MarketSurge charts shows as a traditional buy point at 31.85. Shares pulled back 7% below the entry point. That triggered the automatic sell rule and nullified the 31.85 entry.

That means a rebound from 10-week support is an actionable move for investors.

On Alert For Earnings

REVG shares have declined on the company's past three earnings releases. Fire and emergency equipment are REVG's largest source of revenue. But recreational vehicles are its most profitable segment. However, profit in the segment dropped 17.9% in 2023, vs. a 2,000% gain in adjusted earnings before interest, taxes, depreciation and amortization in the fire and emergency segment.

Following it's earlier Q3 earnings report, Baird analysts wrote that REV Group's operating beat, slight EBITDA guidance raise, and continued strength in its Q3 fire & emergency segment were "not enough given heightened expectations" and continued recreation unit declines.

At the time, the firm reiterated its view that "the stock should eventually trade closer to the mid-$30s.

Analyst consensus puts REVG 2025 profit hitting $2.16 per share, representing a 59% increase compared to 2023 levels.

Trading around earnings reports can be tricky. Learning IBD's options earnings strategy can help investors to minimize their risk.

Rev Group: RV Stocks

The seven stocks in the IBD-tracked Building-Mobile/Manufacturing & RV industry group have collectively added more than 24% this year. Leading the charge is Rev Group, which has soared 64%.

Cavco Industries (CVCO) and Champion Homes (SKY) have both gained around 45% in 2024. SKY stock broke out Monday during stock market trade after being added to the S&P 600.

Best IBD 50 Stocks To Watch

RV stocks broadly had a moment during the coronavirus pandemic, proving to be a winner in the travel space, as people moved away from airplanes. Between the end of March 2020 and March 2021, REVG shares surged 359% before retreating in 2022 and 2023. However, since trading around 10 in mid-2023, REVG has shot up more than 190%.

Rev Group stock has an 84 Composite Rating out of a best-possible 99. Shares also have a 90 Relative Strength Rating and a 95 EPS Rating.

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