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Are Investors Undervaluing These Retail-Wholesale Stocks 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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) and an A for Value.

We should also highlight that RUSHA has a P/B ratio of 1.95. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.22. Within the past 52 weeks, RUSHA's P/B has been as high as 2.37 and as low as 1.70, with a median of 2.02.

Finally, investors should note that RUSHA has a P/CF ratio of 7.47. 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 9.26. RUSHA's P/CF has been as high as 10 and as low as 6.80, with a median of 8.11, all within the past year.

Sonic Automotive (SAH - Free Report) may be another strong Automotive - Retail and Whole Sales stock to add to your shortlist. SAH is a # 1 (Strong Buy) stock with a Value grade of A.

Sonic Automotive also has a P/B ratio of 1.99 compared to its industry's price-to-book ratio of 2.22. Over the past year, its P/B ratio has been as high as 2.83, as low as 1.81, with a median of 2.22.

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


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Sonic Automotive, Inc. (SAH) - free report >>

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