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Is Oshkosh (OSK) a Great Value Stock Right Now?

Zacks Equity Research
RLI Corp. (RLI) 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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Oshkosh (OSK). OSK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.87. This compares to its industry's average Forward P/E of 11.29. Over the past 52 weeks, OSK's Forward P/E has been as high as 21.86 and as low as 10.87, with a median of 15.30.

We also note that OSK holds a PEG ratio of 0.60. 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 industry currently sports an average PEG of 1. Over the last 12 months, OSK's PEG has been as high as 1.61 and as low as 0.60, with a median of 1.06.

Another notable valuation metric for OSK is its 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 2.55. Over the past year, OSK's P/B has been as high as 3.13 and as low as 2.17, with a median of 2.57.

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.

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