Oshkosh Stock Discussion

Oshkosh's low P/E ratio may reflect market's limited growth expectations. Shareholders appear to accept this, anticipating no significant future earnings surprises, making a strong share price rise unlikely.

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Wachenheim predicts Citigroup's shares are undervalued, expecting earnings of $11 per share by 2026. He also foresees Oshkosh earning $15-$16 per share in 2026, and Terex's shares doubling in value by 2026.

Market participants hold the company in higher regard despite slower EPS growth. The divergence between TSR and share price return can be largely explained by dividend payments.

There is some skepticism among investors given the low P/E ratio compared to Oshkosh's solid growth metrics. The low P/E ratio can be attributed to potential unobserved threats to earnings or anticipations of earnings instability in the future.

HLIB research predicts OSK's robust balance sheet and treasury team, alongside its increased lending capacity, will provide a competitive edge. Additionally, advances in margins and sales and earnings in the property development business are expected, protruding anticipated growth and a forecast 5.8% dividend yield for FY23.

All but one end market posted Y/Y organic growth, but most verticals are also seeing growth decelerate sequentially We spend a lot of time gathering organic growth data by geography and end market for the entire MI/EE & Machinery space (not just the names we cover), and note that 17/18 end markets posted Y/Y organic growth in 2Q (consistent with 1Q), up 9% at the median. These included: Truck OEMs +23%, Construction Equipment +21%, Autos +19...