Dj Rush Enterprises Price Target Announced At $70.00/Share By Ubs

What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Electrical Systems company Whirlpool fell 4.8%. Is now the time to buy Whirlpool? Access our full analysis report here, it’s free.
• Automobile Manufacturing company Mobileye fell 7%. Is now the time to buy Mobileye? Access our full analysis report here, it’s free.
• Specialty Equipment Distributors company Custom Truck One Source fell 4.1%. Is now the time to buy Custom Truck One Source? Access our full analysis report here, it’s free.
• Ground Transportation company Saia fell 2.2%. Is now the time to buy Saia? Access our full analysis report here, it’s free.
• Vehicle Parts Distributors company Rush Enterprises fell 3.3%. Is now the time to buy Rush Enterprises? Access our full analysis report here, it’s free.

Zooming In On Mobileye (MBLY)

Mobileye’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 2.7% on the news that the company provided a full-year 2026 revenue forecast that fell short of analyst expectations. 

The cautious outlook overshadowed the company's fourth-quarter results. Mobileye's full-year revenue guidance of $1.94 billion at the midpoint came in 3% below analysts’ estimates. While its adjusted earnings of $0.06 per share met expectations, its quarterly revenue of $446 million represented a 9% decline year on year. Profitability was also a major concern, as the company’s operating margin worsened to negative 31.4% from negative 17.6% in the same quarter last year, and its adjusted EBITDA significantly missed Wall Street's estimates.

Mobileye is down 12.4% since the beginning of the year, and at $9.83 per share, it is trading 48.5% below its 52-week high of $19.08 from July 2025. Investors who bought $1,000 worth of Mobileye’s shares at the IPO in October 2022 would now be looking at an investment worth $339.45.

Rush Enterprises has had an impressive run over the past six months as its shares have beaten the S&P 500 by 14.3%. The stock now trades at $62.68, marking a 24.3% gain. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Why Do We Think Rush Enterprises Will Underperform?

Despite the momentum, we're cautious about Rush Enterprises. Here are three reasons you should be careful with RUSHA and a stock we'd rather own.

1. Revenue Growth Flatlining

Long-term growth is the most important, but within industrials, a stretched historical view may miss new industry trends or demand cycles. Rush Enterprises’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

2. Revenue Projections Show Stormy Skies Ahead

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Rush Enterprises’s revenue to drop by 5.4%, a decrease from its 9.9% annualized growth for the past five years. This projection doesn't excite us and implies its products and services will face some demand challenges.

3. EPS Took a Dip Over the Last Two Years

While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.

Sadly for Rush Enterprises, its EPS declined by 12% annually over the last two years while its revenue was flat. This tells us the company struggled to adjust to choppy demand.

Final Judgment

We cheer for all companies making their customers lives easier, but in the case of Rush Enterprises, we’ll be cheering from the sidelines. With its shares outperforming the market lately, the stock trades at 17.5× forward P/E (or $62.68 per share). This valuation is reasonable, but the company’s shaky fundamentals present too much downside risk. There are superior stocks to buy right now. We’d suggest looking at the most entrenched endpoint security platform on the market.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the industrial distributors industry, including Rush Enterprises and its peers.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Distributors that boast a reliable selection of products–everything from hardhats and fasteners for jet engines to ceiling systems–and quickly deliver goods to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to better interact with customers. Additionally, distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 24 industrial distributors stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Rush Enterprises

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Rush Enterprises reported revenues of $1.88 billion, flat year on year. This print exceeded analysts’ expectations by 5.7%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

“The commercial vehicle industry continued to face challenging operating conditions in the third quarter of 2025. Freight rates remain depressed and overcapacity continues to weigh on the market. In addition, while the industry gained some clarity regarding the tariffs that will be imposed on certain commercial vehicles and parts beginning November 1, economic uncertainty and regulatory ambiguity remains, especially with respect to engine emissions regulations. These factors are impacting our customers’ vehicle replacement decisions. On a positive note, we experienced modest gains in aftermarket revenue and light-duty vehicle sales. However, overall demand remained soft, particularly with respect to new heavy-duty and medium-duty commercial vehicle sales,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc.

Rush Enterprises achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 17.1% since reporting and currently trades at $58.99.

Best Q3: Hudson Technologies

Founded in 1991, Hudson Technologies specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $74.01 million, up 19.5% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.1% since reporting. It currently trades at $7.33.

Weakest Q3: Alta

Founded in 1984, Alta Equipment Group is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Alta reported revenues of $422.6 million, down 5.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Alta delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 3.2% since the results and currently trades at $6.06.

Read our full analysis of Alta’s results here.

DNOW

Spun off from National Oilwell Varco, DNOW provides distribution and supply chain solutions for the energy and industrial end markets.

DNOW reported revenues of $634 million, up 4.6% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 7.1% since reporting and currently trades at $13.56.

Read our full, actionable report on DNOW here, it’s free.

United Rentals

Owning the largest rental fleet in the world, United Rentals provides equipment rental and related services to construction, industrial, and infrastructure industries.

United Rentals reported revenues of $4.23 billion, up 5.9% year on year. This number beat analysts’ expectations by 1.6%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ organic revenue estimates but a significant miss of analysts’ EPS estimates.

The stock is down 4.5% since reporting and currently trades at $946.86.