Should Value Investors Buy Rush Enterprises (RUSHA) Stock?

RUSHA

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Rush Enterprises (RUSHA - Free Report) . RUSHA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that RUSHA has a P/B ratio of 2.14. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.19. Over the past 12 months, RUSHA's P/B has been as high as 2.20 and as low as 1.46, with a median of 1.75.

Finally, our model also underscores that RUSHA has a P/CF ratio of 7.41. 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 stock's P/CF looks attractive against its industry's average P/CF of 8.22. Over the past 52 weeks, RUSHA's P/CF has been as high as 7.64 and as low as 4.76, with a median of 5.82.

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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