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Is Rush Enterprises (RUSHA) Stock Undervalued 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Rush Enterprises (RUSHA). RUSHA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Investors should also note that RUSHA holds a PEG ratio of 0.69. 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 1.03. RUSHA's PEG has been as high as 1.56 and as low as 0.62, with a median of 0.92, all within the past year.

Finally, our model also underscores that RUSHA has a P/CF ratio of 4.09. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.22. Over the past year, RUSHA's P/CF has been as high as 8.99 and as low as 3.56, with a median of 5.10.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Investing Ideas , Stocks
Referenced Symbols: RUSHA



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