Are Investors Undervaluing Rush Enterprises (RUSHA) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Rush Enterprises (RUSHA) is a stock many investors are watching right now. RUSHA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors will also notice that RUSHA has a PEG ratio of 0.68. 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. RUSHA's PEG compares to its industry's average PEG of 1.03. Over the past 52 weeks, RUSHA's PEG has been as high as 1.56 and as low as 0.62, with a median of 0.91.
Investors should also recognize that RUSHA has a P/B ratio of 1.36. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.41. Within the past 52 weeks, RUSHA's P/B has been as high as 2.19 and as low as 1.19, with a median of 1.63.
Finally, investors should note that RUSHA has a P/CF ratio of 4.03. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.06. Over the past 52 weeks, RUSHA's P/CF has been as high as 8.99 and as low as 3.54, with a median of 5.03.
These are only a few of the key metrics included in Rush Enterprises's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RUSHA looks like an impressive value stock at the moment.
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