Should Value Investors Buy Oshkosh (OSK) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company to watch right now is Oshkosh (OSK). OSK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.52, while its industry has an average P/E of 18.03. Over the past year, OSK's Forward P/E has been as high as 25.62 and as low as 9.52, with a median of 12.97.
Another notable valuation metric for OSK is its P/B ratio of 1.59. 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. OSK's current P/B looks attractive when compared to its industry's average P/B of 2.25. Over the past 12 months, OSK's P/B has been as high as 2.18 and as low as 1.47, with a median of 1.83.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OSK has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.78.
Finally, our model also underscores that OSK has a P/CF ratio of 8.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. OSK's current P/CF looks attractive when compared to its industry's average P/CF of 25.51. Over the past year, OSK's P/CF has been as high as 89.88 and as low as 8.63, with a median of 14.52.
Wabash National (WNC) may be another strong Automotive - Original Equipment stock to add to your shortlist. WNC is a # 2 (Buy) stock with a Value grade of A.
Additionally, Wabash National has a P/B ratio of 1.83 while its industry's price-to-book ratio sits at 2.25. For WNC, this valuation metric has been as high as 3.61, as low as 1.82, with a median of 2.79 over the past year.
These are just a handful of the figures considered in Oshkosh and Wabash National'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 and WNC is an impressive value stock right now.
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Oshkosh Corporation (OSK) : Free Stock Analysis Report
Wabash National Corporation (WNC) : Free Stock Analysis Report
