Stock Analysis

Is There Now An Opportunity In Oshkosh Corporation (NYSE:OSK)?

NYSE:OSK
Source: Shutterstock

Oshkosh Corporation (NYSE:OSK), a machinery company based in United States, received a lot of attention from a substantial price movement on the NYSE in the over the last few months, increasing to $96.24 at one point, and dropping to the lows of $83.29. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Oshkosh's current trading price of $86.15 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Oshkosh’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Oshkosh

Is Oshkosh still cheap?

According to my valuation model, Oshkosh seems to be fairly priced at around 19.95% below my intrinsic value, which means if you buy Oshkosh today, you’d be paying a fair price for it. And if you believe the company’s true value is $107.62, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Oshkosh’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Oshkosh look like?

NYSE:OSK Future Profit Feb 13th 18
NYSE:OSK Future Profit Feb 13th 18
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 46.17% over the next couple of years, the future seems bright for Oshkosh. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in OSK’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on OSK, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Oshkosh. You can find everything you need to know about Oshkosh in the latest infographic research report. If you are no longer interested in Oshkosh, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Valuation is complex, but we're helping make it simple.

Find out whether Oshkosh is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.