Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Oshkosh (OSK) is a stock many investors are watching right now. OSK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that OSK holds a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OSK's industry has an average PEG of 0.76 right now. Within the past year, OSK's PEG has been as high as 1.35 and as low as 0.45, with a median of 0.66.
Another notable valuation metric for OSK is its P/B ratio of 1.75. 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 attractive against its industry's average P/B of 2.07. Over the past year, OSK's P/B has been as high as 3.13 and as low as 1.52, with a median of 2.26.
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.