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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #1 (Strong Buy) and an A for Value.
RUSHA is also sporting a PEG ratio of 0.64. 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 industry currently sports an average PEG of 1. Over the last 12 months, RUSHA's PEG has been as high as 1.55 and as low as 0.57, with a median of 0.89.
Another notable valuation metric for RUSHA is its P/B ratio of 1.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RUSHA's current P/B looks attractive when compared to its industry's average P/B of 1.37. RUSHA's P/B has been as high as 2.11 and as low as 1.14, with a median of 1.59, over the past year.
Finally, investors should note that RUSHA has a P/CF ratio of 3.79. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RUSHA's P/CF compares to its industry's average P/CF of 4.91. Over the past 52 weeks, RUSHA's P/CF has been as high as 6.96 and as low as 3.39, with a median of 4.85.
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.