Back to top

Image: Bigstock

Are Investors Undervaluing Oshkosh (OSK) Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Oshkosh (OSK - Free Report) . OSK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.92, which compares to its industry's average of 21.97. OSK's Forward P/E has been as high as 14.87 and as low as 9.52, with a median of 11.08, all within the past year.

Investors should also recognize that OSK has a P/B ratio of 2.20. 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 2.85. OSK's P/B has been as high as 2.20 and as low as 1.47, with a median of 1.80, over the past year.

Finally, investors should note that OSK has a P/CF ratio of 10.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OSK's current P/CF looks attractive when compared to its industry's average P/CF of 32.53. Over the past year, OSK's P/CF has been as high as 18.39 and as low as 8.63, with a median of 10.84.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Oshkosh Corporation (OSK) - free report >>

Published in