Oshkosh (OSK) Stock: Weak On High Volume Today - TheStreet

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Oshkosh

(

OSK

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Oshkosh as such a stock due to the following factors:

  • OSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.8 million.
  • OSK has traded 109,319 shares today.
  • OSK is trading at 6.97 times the normal volume for the stock at this time of day.
  • OSK is trading at a new low 4.00% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on OSK:

Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment offers aerial work platforms and telehandlers used in construction, agricultural, industrial, institutional, and general maintenance applications. The stock currently has a dividend yield of 1.3%. OSK has a PE ratio of 15.1. Currently there are 8 analysts that rate Oshkosh a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Oshkosh has been 719,800 shares per day over the past 30 days. Oshkosh has a market cap of $4.0 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 2.13 and a short float of 3.3% with 4.24 days to cover. Shares are down 8.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Oshkosh as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.17, which illustrates the ability to avoid short-term cash problems.
  • OSK, with its decline in revenue, underperformed when compared the industry average of 2.0%. Since the same quarter one year prior, revenues fell by 12.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • OSHKOSH CORP's earnings per share declined by 26.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, OSHKOSH CORP increased its bottom line by earning $3.54 versus $2.67 in the prior year. For the next year, the market is expecting a contraction of 1.1% in earnings ($3.50 versus $3.54).
  • The gross profit margin for OSHKOSH CORP is rather low; currently it is at 18.83%. Regardless of OSK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.43% trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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