Are Investors Undervaluing Rush Enterprises (RUSHA) Right Now?

RUSHA

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Rush Enterprises (RUSHA - Free Report) is a stock many investors are watching right now. RUSHA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that RUSHA has a PEG ratio of 1.62. 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 industry has an average PEG of 1.93 right now. Over the last 12 months, RUSHA's PEG has been as high as 1.89 and as low as 0.63, with a median of 0.87.

Finally, investors should note that RUSHA has a P/CF ratio of 6.50. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.41. RUSHA's P/CF has been as high as 6.59 and as low as 3.32, with a median of 4.93, all within the past year.

These are only a few of the key metrics included in Rush Enterprises's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RUSHA looks like an impressive value stock at the moment.

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