How Will Oshkosh (OSK) Stock React To This Analyst Upgrade Today?

NEW YORK (TheStreet) -- Oshkosh Corp.  (OSK) stock is up 1.44% to $46.50 in pre-market trading as the specialty vehicles company was upgraded to "outperform" from "neutral" at Robert W. Baird.

The firm cited the pullback in shares following the company's third quarter earnings miss for the rating, but lowered its price target to $55 from $58.

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Separately, TheStreet Ratings team rates OSHKOSH CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate OSHKOSH CORP (OSK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, OSK's share price has jumped by 30.84%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OSK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The current debt-to-equity ratio, 0.43, 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 1.07, which illustrates the ability to avoid short-term cash problems.
  • OSHKOSH CORP's earnings per share declined by 13.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth 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. This year, the market expects an improvement in earnings ($3.60 versus $3.54).
  • OSK, with its decline in revenue, underperformed when compared the industry average of 4.0%. Since the same quarter one year prior, revenues fell by 15.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: OSK Ratings Report
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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