Should Value Investors Buy Rush Enterprises (RUSHA) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Rush Enterprises (RUSHA). RUSHA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is RUSHA's P/B ratio of 1.73. 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 attractive against its industry's average P/B of 2.48. Over the past 12 months, RUSHA's P/B has been as high as 1.89 and as low as 1.43, with a median of 1.63.
Finally, investors should note that RUSHA has a P/CF ratio of 5.77. 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. RUSHA's P/CF compares to its industry's average P/CF of 7.75. Within the past 12 months, RUSHA's P/CF has been as high as 6.21 and as low as 4.53, with a median of 5.18.
Another great Automotive - Retail and Whole Sales stock you could consider is Titan Machinery (TITN), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Titan Machinery has a P/B ratio of 1.16 while its industry's price-to-book ratio sits at 2.48. For TITN, this valuation metric has been as high as 2.01, as low as 1.01, with a median of 1.39 over the past year.
These are only a few of the key metrics included in Rush Enterprises and Titan Machinery strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RUSHA and TITN look like an impressive 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
Titan Machinery Inc. (TITN) : Free Stock Analysis Report
