Looking for the best value stocks? Tracey Ryniec, Stock Strategist at Zacks Investment Research, discusses two stocks that might be worth a closer look by value investors: Oshkosh Corporation (OSK) and Cabela's Inc. (CAB).
Both companies have forward P/Es well below the average of the S&P 500, which is still at 17.4x despite the recent pullback in the market. Both stocks have been beaten up by investors in the last year.
Oshkosh is navigating the difficult heavy machinery industry. It recently won a lucrative Department of Defense contract to build thousands of Joint Light Tactical Vehicles, aka Humvees, for the US Army and Marines. While that contract is still under the protest period, if Oshkosh retains it, it could help smooth out the cyclical nature of its other segments, including Access Equipment.
Cabela's has had to navigate slowing fire arm sales which has hit earnings. However, analysts see a strong hunting season which could be a catalyst heading into the holiday season.
Both companies are Zacks Rank #2 (Buy) stocks.
But what else should investors take away from these two companies?