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Are Investors Undervaluing Rush Enterprises (RUSHA) Right Now?

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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 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 note that RUSHA holds a PEG ratio of 1.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RUSHA's PEG compares to its industry's average PEG of 1.70. Within the past year, RUSHA's PEG has been as high as 1.89 and as low as 0.64, with a median of 1.25.

Finally, our model also underscores that RUSHA has a P/CF ratio of 8.43. 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. RUSHA's current P/CF looks attractive when compared to its industry's average P/CF of 11.41. RUSHA's P/CF has been as high as 8.43 and as low as 3.32, with a median of 5.39, 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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