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Should Value Investors Buy Oshkosh (OSK) Stock?

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.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Oshkosh (OSK). OSK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.96, which compares to its industry's average of 11.12. Over the last 12 months, OSK's Forward P/E has been as high as 21.86 and as low as 10.55, with a median of 13.85.

Investors should also note that OSK holds a PEG ratio of 0.60. 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 1.04. Within the past year, OSK's PEG has been as high as 1.61 and as low as 0.58, with a median of 0.79.

Investors should also recognize that OSK has a P/B ratio of 2.15. The P/B is a method of comparing a stock's market value to 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 2.75. Over the past 12 months, OSK's P/B has been as high as 3.13 and as low as 2.05, with a median of 2.54.

Value investors will likely look at more than just these metrics, but the above data helps show that Oshkosh is likely undervalued currently. And when considering the strength of its earnings outlook, OSK sticks out at as one of the market's strongest value stocks.


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