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Is Rush Enterprises (RUSHA) Stock Undervalued Right Now?

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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, 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 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 value investors might notice is Rush Enterprises (RUSHA - Free Report) . RUSHA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that RUSHA has a P/B ratio of 2.30. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.50. Within the past 52 weeks, RUSHA's P/B has been as high as 2.43 and as low as 1.60, with a median of 1.94.

Finally, our model also underscores that RUSHA has a P/CF ratio of 9.31. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.02. RUSHA's P/CF has been as high as 9.81 and as low as 5.79, with a median of 7.03, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Rush Enterprises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RUSHA feels like a great value stock at the moment.


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