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Oshkosh's (OSK) Product Demand Increases With Robust Economy
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On Aug 20, we issued an updated research report on Oshkosh Corporation (OSK - Free Report) .
In third-quarter fiscal 2018 results reported last month, this designer, manufacturer and seller of vehicle bodies witnessed a year-over-year increase in revenues and adjusted earnings. Moreover, both earnings and sales outpaced the respective Zacks Consensus Estimate. This increase in financials is primarily due to higher year-over-year sales across all of the four segments in all of the markets.
In the last-reported quarter, Oshkosh’s access equipment segment’s sales rose 18.4% year over year to $1.16 billion. A recovering economy has led to a robust demand in North America and other international markets, which is expected to double segment sales in fiscal 2018. For fiscal 2018, Oshkosh anticipates the access equipment segment’s sales to be $3.6-$3.7 billion.
Further, the company’s strong cash flow enabled it to enhance shareholder value. It frequently engages in share buybacks and pays regular quarterly dividends. During third-quarter fiscal 2018, Oshkosh completed repurchasing 523,294 shares of common stock worth $38.1 million. Additionally, it announced a quarterly dividend payment of 24 cents per share.
However, increasing raw material costs and freight rates might partly impact fiscal 2018 results. Supply chain challenges, leading to product disruptions, will also impact Oshkosh’s product deliveries to customers at a time increased demand.
Price Performance
In the past three months, Oshkosh’s stock has lost 9.6%, outperforming 10.7% decline recorded by the industry it belongs to.
Zacks Rank & Other Key Picks
Oshkosh currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and PACCAR Inc. (PCAR - Free Report) . Fox Factory and Allison Transmission sport a Zacks Rank #1 (Strong Buy) while PACCAR carries a Zacks Rank of 2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 16.8%. Shares of the company have risen 65.6% in the past three months.
Allison Transmission has an expected long-term growth rate of 10%. Over the past three months, shares of the company have gained 10.4%.
PACCAR has an expected long-term growth rate of 11.6%. Over the past three months, shares of the company have gained 3.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Oshkosh's (OSK) Product Demand Increases With Robust Economy
On Aug 20, we issued an updated research report on Oshkosh Corporation (OSK - Free Report) .
In third-quarter fiscal 2018 results reported last month, this designer, manufacturer and seller of vehicle bodies witnessed a year-over-year increase in revenues and adjusted earnings. Moreover, both earnings and sales outpaced the respective Zacks Consensus Estimate. This increase in financials is primarily due to higher year-over-year sales across all of the four segments in all of the markets.
In the last-reported quarter, Oshkosh’s access equipment segment’s sales rose 18.4% year over year to $1.16 billion. A recovering economy has led to a robust demand in North America and other international markets, which is expected to double segment sales in fiscal 2018. For fiscal 2018, Oshkosh anticipates the access equipment segment’s sales to be $3.6-$3.7 billion.
Oshkosh Corporation Price and Consensus
Oshkosh Corporation Price and Consensus | Oshkosh Corporation Quote
Further, the company’s strong cash flow enabled it to enhance shareholder value. It frequently engages in share buybacks and pays regular quarterly dividends. During third-quarter fiscal 2018, Oshkosh completed repurchasing 523,294 shares of common stock worth $38.1 million. Additionally, it announced a quarterly dividend payment of 24 cents per share.
However, increasing raw material costs and freight rates might partly impact fiscal 2018 results. Supply chain challenges, leading to product disruptions, will also impact Oshkosh’s product deliveries to customers at a time increased demand.
Price Performance
In the past three months, Oshkosh’s stock has lost 9.6%, outperforming 10.7% decline recorded by the industry it belongs to.
Zacks Rank & Other Key Picks
Oshkosh currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and PACCAR Inc. (PCAR - Free Report) . Fox Factory and Allison Transmission sport a Zacks Rank #1 (Strong Buy) while PACCAR carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 16.8%. Shares of the company have risen 65.6% in the past three months.
Allison Transmission has an expected long-term growth rate of 10%. Over the past three months, shares of the company have gained 10.4%.
PACCAR has an expected long-term growth rate of 11.6%. Over the past three months, shares of the company have gained 3.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>