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Is Rush Enterprises (RUSHA) Stock Undervalued Right Now?

Zacks Equity Research
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

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

Investors should also note that RUSHA holds a PEG ratio of 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RUSHA's PEG compares to its industry's average PEG of 1.18. RUSHA's PEG has been as high as 1.64 and as low as 0.79, with a median of 1.21, all within the past year.

We should also highlight that RUSHA has a P/B ratio of 1.63. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.70. Over the past 12 months, RUSHA's P/B has been as high as 2.29 and as low as 1.48, with a median of 1.76.

Finally, we should also recognize that RUSHA has a P/CF ratio of 4.69. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RUSHA's current P/CF looks attractive when compared to its industry's average P/CF of 6.17. Over the past year, RUSHA's P/CF has been as high as 9.40 and as low as 4.50, with a median of 6.06.

These are just a handful of the figures considered in Rush Enterprises's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RUSHA is an impressive value stock right now.


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