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Are Investors Undervaluing Oshkosh (OSK) Right Now?

Zacks Equity Research
Crown (CCK) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is Oshkosh (OSK). OSK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that OSK holds a PEG ratio of 0.54. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OSK's PEG compares to its industry's average PEG of 0.89. Over the last 12 months, OSK's PEG has been as high as 1.54 and as low as 0.45, with a median of 0.69.

Investors should also recognize that OSK has a 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 stock's P/B looks solid versus its industry's average P/B of 2.22. Over the past 12 months, OSK's P/B has been as high as 3.13 and as low as 1.60, with a median of 2.38.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Oshkosh is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OSK feels like a great value stock at the moment.


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