Should Value Investors Buy Rush Enterprises (RUSHA) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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) and an A for Value.
We also note that RUSHA holds a PEG ratio of 0.76. 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 1.19. Over the past 52 weeks, RUSHA's PEG has been as high as 1.64 and as low as 0.75, with a median of 0.95.
Another notable valuation metric for RUSHA is its P/B ratio of 1.51. The P/B ratio pits a stock's market value against 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 1.71. RUSHA's P/B has been as high as 2.29 and as low as 1.48, with a median of 1.70, over the past year.
Finally, we should also recognize that RUSHA has a P/CF ratio of 4.53. 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 6.23. Over the past 52 weeks, RUSHA's P/CF has been as high as 9.40 and as low as 4.49, with a median of 5.33.
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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