Is ush Enterprises, Inc. (RUSHA) a Smart Long-Term Buy?

Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Wasatch Small Cap Value Fund—Investor Class gained 6.60% in the fourth quarter of 2021 and outperformed its benchmark. For the one-year period ended December 31, 2021, the Fund gained 25.38%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wasatch Small Cap Value Fund, in its Q4 2021 investor letter, mentioned Rush Enterprises, Inc. (NASDAQ: RUSHA) and discussed its stance on the firm. Founded in 1965, Rush Enterprises, Inc. is a New Braunfels, Texas-based commercial vehicle retailer with a $2.7 billion market capitalization, and is currently spearheaded by its CEO, William M Rusty Rush. RUSHA delivered a -7.94% return since the beginning of the year, while its 12-month returns are up by 10.96%. The stock closed at $51.22 per share on March 08, 2022.

Here is what Wasatch Small Cap Value Fund has to say about Rush Enterprises, Inc. in its Q4 2021 investor letter:

“In managing the Fund, we seek balance by investing across three areas: Fallen Angels (growth stocks that have slid into value territory due to short-term factors), Undiscovered Gems (inexpensive growth companies flying below Wall Street’s radar) and Quality Value companies (those with characteristics such as strong fundamentals, low leverage and attractive valuations). While our overall approach to investing is long term, we often have a shorter time horizon when it comes to Quality Value than we do in the other two categories, since this part of our approach is designed to identify “mean reversion” potential in undervalued stocks. Stocks’ wide and frequent swings across sectors, styles and—more recently—the market as a whole have given us an abundance of opportunities to invest in companies that we consider high quality whose stocks are trading below what we assess as their fair value. We added two such companies to the portfolio in the fourth quarter. One was truck sales and service company Rush Enterprises, Inc. (RUSHA).”

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Our calculations show that Rush Enterprises, Inc. (NASDAQ: RUSHA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RUSHA was in 23 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 19 funds in the previous quarter. Rush Enterprises, Inc. (NASDAQ: RUSHA) delivered a -6.24% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.