Yahoo Finance Is Rush Enterprises (RUSHA) Stock Undervalued Right Now?
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 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 stock to keep an eye on is Rush Enterprises (RUSHA). RUSHA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is RUSHA's P/B ratio of 1.72. 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 2.07. Within the past 52 weeks, RUSHA's P/B has been as high as 2.20 and as low as 1.46, with a median of 1.80.
Finally, investors should note that RUSHA has a P/CF ratio of 6.32. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. RUSHA's P/CF compares to its industry's average P/CF of 7.95. Over the past 52 weeks, RUSHA's P/CF has been as high as 7.81 and as low as 5.01, with a median of 6.20.
These are just a handful of the figures considered in Rush Enterprises's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RUSHA is an impressive value stock right now.
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Rush Enterprises, Inc. (RUSHA) : Free Stock Analysis Report