Machinery Giant Climbing Higher Ahead of Earnings

The industrial stock has the makings of a solid long-term play

facebook twitter linkedin

Oshkosh Corporation (NYSE:OSK) is an American industrial company that manufacturers and markets access equipment, specialty vehicles, and truck bodies for the primary markets of access equipment, defense, fire & emergency and municipal, refuse hauling, concrete placement as well as airport services. Heading into Wednesday, OSK was last seen flat at $120.80.

Oshkosh stock has increased by about 49% in price year-over-year and is up by 81% since bottoming at a 52-week low of $66.74 last October. Additionally, shares of OSK have grown 40% year-to-date, but pulled back 12% since reaching its record high of $137.47 in mid-May. Oshkosh also offers a forward dividend of $1.32 and a dividend yield 1.10%.

Oshkosh will be issuing its third quarter of fiscal 2021 financial results before the market opens tomorrow, July 29. Over the past year, OSK has outperformed Wall Street's earnings expectations on all four of its most recent earnings reports with decent margins. Analysts are projecting a hefty earnings jump up to $2.26 per share for Oshkosh stock in Q2 of 2021.

For Q2 of fiscal 2020, OSK beat analysts’ estimates by a margin of $0.80, reporting an earnings per share (EPS) of $1.29. For Q3 of fiscal 2020 Oshkosh's EPS increased to $1.30, beating expectations by a margin of $0.21. For Q4 of fiscal 2020, OSK posted a decrease in earnings, dropping to $1.13 per share. However, the company still beat estimates by a margin of $0.40. For Q1 of fiscal 2021, Oshkosh reported an EPS of $1.48 and beat expectations by a margin of $0.33.

From a fundamental point of view, Oshkosh stock still has potential as a value play despite OSK growing so significantly over the past year. OSK has an attractive forward price-earnings ratio of 14.49, although Oshkosh stock currently trades at a high price-earnings ratio of 23.78. Overall, Oshkosh stock appears to be a solid long-term play for more risk-averse investors.

Heading into Wednesday, analysts have been leaning bullish toward the security. Specifically, 10 of the 12 brokerages in coverage sport a "buy" or "strong buy" recommendation on OSK.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners