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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 #1 (Strong Buy) and a Value grade of A.

We also note that RUSHA holds a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RUSHA's industry has an average PEG of 2.20 right now. Over the past 52 weeks, RUSHA's PEG has been as high as 1.89 and as low as 0.88, with a median of 1.31.

Finally, we should also recognize that RUSHA has a P/CF ratio of 9.15. 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. RUSHA's P/CF compares to its industry's average P/CF of 11.41. RUSHA's P/CF has been as high as 10 and as low as 3.88, with a median of 7.56, 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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