Rush Enterprises, Inc. : Benefit from proximity to the support
October 14, 2014 at 02:34 pm
By
Share
BUY
Repli_rebond
Live
Entry price
Target
Stop-loss
Potential
US$32.67
US$34
US$31.4
+4.07%
The commercial vehicle dealerships operator Rush Enterprises is close to a support area that might relaunch the upward trend.
According to Surperformance ratings, the company shows good fundamental criteria. The security has a low estimated valuation with an EV/Sales ratio of 0.39x for the upcoming year. Also, it seems that Rush Enterprises’ profitability could significantly increase by 2015. As well, the P/E ratio is estimated at 14.1x against 18.2x for 2014, which announces the improvement of earnings per share. Indeed, net margin should be at 2.14% in 2015 against 1.62% for the current year. Sales are also expected to increase. Moreover, analysts’ consensus targets an average goal of USD 39.6.
Technically, the bearish movement in the short term has known a weakening close to the USD 31.9 mid-term support. On the other hand, the stock prices move inside an upward trend in the long term. Furthermore, thanks to the USD 31.9 support and a daily upward oriented trend line, a bullish movement is likely to appear. The next trading sessions could lead to a technical rebound.
Thus, for both long and middle terms, investors can take a buying position within the USD 31.9 area. In the first instance, the target price will be the 20-day moving average at USD 34.10 and the USD 34.7 pivot point. In case of the USD 31.9 support breakdown at the closing price, investors should sell their positions at USD 31.4.
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Rush Enterprises, Inc. is an integrated retailer of commercial vehicles and related services. The Company operates through the Truck Segment, which includes its operation of a network of commercial vehicle dealerships under the name Rush Truck Centers. Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird and Dennis Eagle. Through its network of Rush Truck Centers, the Company provides one-stop service for the needs of its commercial vehicle customers, including retail sales of new and used commercial vehicles, aftermarket parts sales, service and repair facilities, financing, leasing and rental, and insurance products. It operates over 125 franchised Rush Truck Centers in 23 states. It also owns and operates over 14 international dealership locations in Ontario. It provides aftermarket parts, service and body shop operations plus financing, insurance, leasing and rental, and chrome accessories and tires.