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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Rush Enterprises (RUSHA). RUSHA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that RUSHA has a P/B ratio of 1.95. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.44. Over the past year, RUSHA's P/B has been as high as 2.22 and as low as 1.17, with a median of 1.78.
Finally, investors will want to recognize that RUSHA has a P/CF ratio of 8.50. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.10. Over the past year, RUSHA's P/CF has been as high as 10 and as low as 4.61, with a median of 8.07.
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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Rush Enterprises, Inc. (RUSHA) : Free Stock Analysis Report
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