Rush (RUSHA) Flagged As Strong On High Volume

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Rush ( RUSHA) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rush as such a stock due to the following factors:

  • RUSHA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
  • RUSHA has traded 54,335 shares today.
  • RUSHA is trading at 7.47 times the normal volume for the stock at this time of day.
  • RUSHA is trading at a new high 5.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RUSHA with the Ticky from Trade-Ideas. See the FREE profile for RUSHA NOW at Trade-Ideas

More details on RUSHA:

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. RUSHA has a PE ratio of 13. Currently there are 2 analysts that rate Rush a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Rush has been 204,800 shares per day over the past 30 days. Rush has a market cap of $813.7 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.31 and a short float of 11.1% with 17.19 days to cover. Shares are down 17.1% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Rush as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, attractive valuation levels, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 24.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 39.7% when compared to the same quarter one year prior, rising from $12.01 million to $16.78 million.
  • RUSH ENTERPRISES INC has improved earnings per share by 36.7% 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, RUSH ENTERPRISES INC increased its bottom line by earning $1.96 versus $1.22 in the prior year. For the next year, the market is expecting a contraction of 3.1% in earnings ($1.90 versus $1.96).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, RUSH ENTERPRISES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Stocks Turn Lower as 10-Year Yield Hits 3%

Stocks Turn Lower as 10-Year Yield Hits 3%

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Tuesday's Market Movers: CAT, UTX, KO, MMM

Tuesday's Market Movers: CAT, UTX, KO, MMM

Wall Street Is Totally Forgetting Apple Will Be Giving Away Tons of Cash in 2018

Wall Street Is Totally Forgetting Apple Will Be Giving Away Tons of Cash in 2018

Vivendi Slides After Reports Vincent Bollore Questioned in Corruption Probe

Vivendi Slides After Reports Vincent Bollore Questioned in Corruption Probe