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Should Value Investors Buy Oshkosh (OSK) Stock?

J.Jill (JILL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Oshkosh (OSK) is a stock many investors are watching right now. 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 9.12, which compares to its industry's average of 9.55. Over the past 52 weeks, OSK's Forward P/E has been as high as 19.77 and as low as 8.13, with a median of 12.22.

OSK is also sporting a PEG ratio of 0.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OSK's PEG compares to its industry's average PEG of 0.87. Over the last 12 months, OSK's PEG has been as high as 1.35 and as low as 0.45, with a median of 0.67.

We should also highlight that OSK has a P/B ratio of 1.90. 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 2.05. Over the past year, OSK's P/B has been as high as 3.13 and as low as 1.54, with a median of 2.34.

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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