U.S. Markets closed

Is Rush Enterprises (RUSHA) a Great Value Stock Right Now?

Zacks Equity Research
Canadian Solar (CSIQ) closed at $17.44 in the latest trading session, marking a -0.4% move from the prior day.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Rush Enterprises (RUSHA). RUSHA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

RUSHA is also sporting a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RUSHA's PEG compares to its industry's average PEG of 1.24. Over the past 52 weeks, RUSHA's PEG has been as high as 0.99 and as low as 0.57, with a median of 0.79.

Finally, our model also underscores that RUSHA has a P/CF ratio of 5.02. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.04. Within the past 12 months, RUSHA's P/CF has been as high as 5.53 and as low as 3.39, with a median of 4.75.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Rush Enterprises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RUSHA feels like a great value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Rush Enterprises, Inc. (RUSHA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.