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Should Value Investors Buy Oshkosh (OSK) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Oshkosh (OSK - Free Report) is a stock many investors are watching right now. OSK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that OSK holds a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OSK's PEG compares to its industry's average PEG of 0.85. Over the past 52 weeks, OSK's PEG has been as high as 1.35 and as low as 0.45, with a median of 0.66.

Another valuation metric that we should highlight is OSK's P/B ratio of 1.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.28. Within the past 52 weeks, OSK's P/B has been as high as 3.13 and as low as 1.52, with a median of 2.29.

These are only a few of the key metrics included in Oshkosh's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OSK looks like an impressive value stock at the moment.


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