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OSK vs. RACE: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Oshkosh (OSK - Free Report) and Ferrari (RACE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Oshkosh is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSK is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
OSK currently has a forward P/E ratio of 12.76, while RACE has a forward P/E of 39.92. We also note that OSK has a PEG ratio of 0.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RACE currently has a PEG ratio of 2.31.
Another notable valuation metric for OSK is its P/B ratio of 2.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RACE has a P/B of 23.02.
These are just a few of the metrics contributing to OSK's Value grade of A and RACE's Value grade of F.
OSK stands above RACE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSK is the superior value option right now.
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OSK vs. RACE: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Oshkosh (OSK - Free Report) and Ferrari (RACE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Oshkosh is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSK is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
OSK currently has a forward P/E ratio of 12.76, while RACE has a forward P/E of 39.92. We also note that OSK has a PEG ratio of 0.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RACE currently has a PEG ratio of 2.31.
Another notable valuation metric for OSK is its P/B ratio of 2.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RACE has a P/B of 23.02.
These are just a few of the metrics contributing to OSK's Value grade of A and RACE's Value grade of F.
OSK stands above RACE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSK is the superior value option right now.