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Is Rush Enterprises (RUSHA) a Great Value Stock 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

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

RUSHA is also sporting a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RUSHA's industry has an average PEG of 1.26 right now. Over the past 52 weeks, RUSHA's PEG has been as high as 1.64 and as low as 0.77, with a median of 0.97.

Another valuation metric that we should highlight is RUSHA's P/B ratio of 1.59. Investors use the P/B ratio to look at a stock's market value versus 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 1.74. Over the past 12 months, RUSHA's P/B has been as high as 2.29 and as low as 1.48, with a median of 1.74.

Finally, investors will want to recognize that RUSHA has a P/CF ratio of 4.76. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.35. Over the past 52 weeks, RUSHA's P/CF has been as high as 9.40 and as low as 4.50, with a median of 5.39.

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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