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Should Value Investors Buy Rush Enterprises (RUSHA) Stock?

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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.

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 #2 (Buy), as well as an A grade for Value.

We should also highlight that RUSHA has a P/B ratio of 2.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.64. Over the past year, RUSHA's P/B has been as high as 2.22 and as low as 1.17, with a median of 1.72.

Finally, our model also underscores that RUSHA has a P/CF ratio of 8.96. 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 9.85. Over the past 52 weeks, RUSHA's P/CF has been as high as 10 and as low as 4.61, with a median of 7.85.

Value investors will likely look at more than just these metrics, but the above data helps show that Rush Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, RUSHA sticks out at as one of the market's strongest value stocks.


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