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Are Investors Undervaluing Rush Enterprises (RUSHA) Right Now?

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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.

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 - Free Report) . RUSHA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Investors will also notice that RUSHA has a PEG ratio of 0.73. 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 1.25. Within the past year, RUSHA's PEG has been as high as 1.05 and as low as 0.57, with a median of 0.80.

Finally, investors will want to recognize that RUSHA has a P/CF ratio of 5.30. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.52. 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.


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