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Are Investors Undervaluing Oshkosh (OSK) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Oshkosh (OSK - Free Report) . OSK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.48 right now. For comparison, its industry sports an average P/E of 17.22. Over the last 12 months, OSK's Forward P/E has been as high as 18.96 and as low as 10.44, with a median of 13.27.
Investors should also note that OSK holds a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OSK's PEG compares to its industry's average PEG of 0.90. Over the last 12 months, OSK's PEG has been as high as 0.99 and as low as 0.39, with a median of 0.61.
Another valuation metric that we should highlight is OSK's P/B ratio of 1.60. 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 3. Within the past 52 weeks, OSK's P/B has been as high as 2.56 and as low as 1.60, with a median of 2.16.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OSK has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.69.
These are just a handful of the figures considered in Oshkosh's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OSK is an impressive value stock right now.