Shares of Oshkosh (OSK - Free Report) have been strong performers lately, with the stock up 6.2% over the past month. The stock hit a new 52-week high of $115.63 in the previous session. Oshkosh has gained 5.1% since the start of the year compared to the 22.4% move for the Zacks Auto-Tires-Trucks sector and the 0.8% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 30, 2024, Oshkosh reported EPS of $2.56 versus consensus estimate of $2.17 while it missed the consensus revenue estimate by 0.04%.
For the current fiscal year, Oshkosh is expected to post earnings of $10.30 per share on $10.09 billion in revenues. This represents a 3.21% change in EPS on a 4.42% change in revenues. For the next fiscal year, the company is expected to earn $10.89 per share on $10.1 billion in revenues. This represents a year-over-year change of 5.72% and 0.15%, respectively.
Valuation Metrics
Oshkosh may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Oshkosh has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 7.2X. Additionally, the stock has a PEG ratio of 0.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Oshkosh currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Oshkosh passes the test. Thus, it seems as though Oshkosh shares could have potential in the weeks and months to come.
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Shares of Oshkosh (OSK - Free Report) have been strong performers lately, with the stock up 6.2% over the past month. The stock hit a new 52-week high of $115.63 in the previous session. Oshkosh has gained 5.1% since the start of the year compared to the 22.4% move for the Zacks Auto-Tires-Trucks sector and the 0.8% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 30, 2024, Oshkosh reported EPS of $2.56 versus consensus estimate of $2.17 while it missed the consensus revenue estimate by 0.04%.
For the current fiscal year, Oshkosh is expected to post earnings of $10.30 per share on $10.09 billion in revenues. This represents a 3.21% change in EPS on a 4.42% change in revenues. For the next fiscal year, the company is expected to earn $10.89 per share on $10.1 billion in revenues. This represents a year-over-year change of 5.72% and 0.15%, respectively.
Valuation Metrics
Oshkosh may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Oshkosh has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 7.2X. Additionally, the stock has a PEG ratio of 0.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Oshkosh currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Oshkosh passes the test. Thus, it seems as though Oshkosh shares could have potential in the weeks and months to come.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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