NEW YORK ( TheStreet) -- Rush (Nasdaq: RUSHB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 120.1% when compared to the same quarter one year prior, rising from $5.69 million to $12.52 million.
  • RUSH ENTERPRISES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, RUSH ENTERPRISES INC increased its bottom line by earning $0.65 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($1.27 versus $0.65).
  • Powered by its strong earnings growth of 128.57% and other important driving factors, this stock has surged by 27.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • RUSHB's very impressive revenue growth greatly exceeded the industry average of 15.4%. Since the same quarter one year prior, revenues leaped by 100.7%. Growth in the company's revenue appears to have helped boost the earnings per share.

Rush Enterprises, Inc. operates as an integrated retailer of commercial vehicles and related services in North America. The company has a P/E ratio of 21.8, above the S&P 500 P/E ratio of 17.7. Rush has a market cap of $181.9 million and is part of the services sector and specialty retail industry. Shares are down 7% year to date as of the close of trading on Wednesday.

You can view the full Rush Ratings Report or get investment ideas from our investment research center.
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