RUSHB - Rush Enterprises: Still An Excellent Prospect Despite Continued Industry Woes
2024-05-14 06:08:02 ET
Summary
- Rush Enterprises is experiencing weakness in revenue, profits, and cash flows, but remains an attractive investment opportunity.
- A decline in Class 8 truck sales and component part shortages contributed to the company's revenue decline.
- Management has ambitious plans to grow revenue and market share, particularly in the aftermarket parts and services sector.
One company that I've really come to like over the past year or so has been Rush Enterprises ( RUSHA ) ( RUSHB ). Back in December of last year, for instance, I wrote a bullish article about the firm. For those not familiar with it, it operates as a seller and servicer of commercial vehicles throughout North America. These vehicles consist largely of Class 3 through Class 8 trucks. And the company sells these through a chain of 141 franchise truck centers that it has located across 23 states. It also has a variety of other assets, such as 15 international dealerships in Ontario, Canada, 32 collision centers, and a variety of other assets. The company boasts a truck leasing business that operates out of 51 locations, with a total of 10,463 units in its fleet if we include cranes. And it engages in repair services, as well as the activity of providing aftermarket parts to its customers....
Rush Enterprises: Still An Excellent Prospect Despite Continued Industry Woes