Today's Dead Cat Bounce Stock Is Oshkosh (OSK) - TheStreet

Trade-Ideas LLC identified

Oshkosh

(

OSK

) as a "dead cat bounce" (down big yesterday but up big today) 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 $60.9 million.
  • OSK has traded 95,993 shares today.
  • OSK is up 3.4% today.
  • OSK was down 9.6% yesterday.

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More details on OSK:

Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. Its 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 1.6%. OSK has a PE ratio of 13. Currently there are 7 analysts that rate Oshkosh a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Oshkosh has been 1.2 million shares per day over the past 30 days. Oshkosh has a market cap of $3.2 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.43 and a short float of 10% with 4.35 days to cover. Shares are down 20.5% year-to-date as of the close of trading on Thursday.

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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 attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.3%. Since the same quarter one year prior, revenues fell by 16.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Machinery industry average. The net income has decreased by 14.5% when compared to the same quarter one year ago, dropping from $105.10 million to $89.90 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Machinery industry and the overall market, OSHKOSH CORP's return on equity is below that of both the industry average and the S&P 500.

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