Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank as of August 29th [1][2][3] Group 1: FVCBankcorp, Inc. (FVCB) - FVCBankcorp is a bank holding company for FVCbank with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 5.2% over the last 60 days [1] - FVCBankcorp's shares gained 16.2% over the last three months, outperforming the S&P 500's advance of 10.1% [1] - The company has a Momentum Score of A [1] Group 2: Oshkosh Corporation (OSK) - Oshkosh Corporation is a purpose-built vehicles and equipment company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.5% over the last 60 days [2] - Oshkosh's shares gained 44.3% over the last three months, significantly outperforming the S&P 500's advance of 10.1% [2] - The company has a Momentum Score of B [2] Group 3: T. Rowe Price Group, Inc. (TROW) - T. Rowe Price Group is an investment management company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased by 10.3% over the last 60 days [3] - T. Rowe's shares gained 15.7% over the last three months, also outperforming the S&P 500's advance of 10.1% [3] - The company has a Momentum Score of B [3]

Group 1 - The core analysis indicates that Oshkosh Corporation (NYSE: OSK) is overvalued by 27% based on DCF analysis [1] - Despite being overvalued, the company's valuation metrics suggest that its potential growth is not fully priced in [1] - Oshkosh Corporation has strong long-term contracts and follows a mergers and acquisitions (M&A) growth strategy [1]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: U.S. Machinery and Electricals - **Focus**: Impact of recent policy changes by the Trump Administration on various sub-sectors including electricals, construction, agriculture, and trucks [1][11] Core Insights and Arguments 1. Policy Impact on Renewables - The Trump Administration's policies are de-prioritizing renewables, negatively impacting companies like Quanta (PWR) which derives 30% of sales from this sector [2][49] - The OBBBA cuts tax credits for renewables, shortening the eligibility timeframe from 2032 to 2027, leading to a projected slowdown in construction activity post-2025 [16][54] - Construction costs are rising due to stricter domestic content requirements and tariffs, which could drive renewables to ex-growth from 2025-2030 [2][18] 2. Construction Sector Stimulus - The reinstatement of 100% bonus depreciation for qualified property under the OBBBA is expected to stimulate construction activity, unlocking nearly $90 billion in additional non-residential construction spending, a 7% increase compared to 2024 levels [3][67] - This change is anticipated to benefit construction OEMs such as OSK, URI, ETN, CAT, TRMB, HUBB, DE, and J [3][12] 3. Agriculture Equipment Demand - Changes in biofuels policy, including a 75% increase in biomass-based diesel production mandated by the EPA, could lead to a 10% increase in agricultural equipment demand [4][84] - The extension of clean fuel tax credits from 2027 to 2029 and increased subsidies for biofuels are expected to positively impact companies like Deere, AGCO, and CNH [4][101] 4. Truck OEM Competitive Landscape - The Section 232 investigation into commercial vehicle manufacturing is likely to favor U.S.-based manufacturers like PACCAR (PCAR) by reversing the current tariff structure that disadvantages U.S. manufacturers [5][104] - Current tariffs create a cost disadvantage for U.S. truck manufacturers, as they face higher costs due to imported components [107][110] Additional Important Insights - The overall economic reorientation towards investment rather than consumption is expected to benefit the machinery and electrical sectors [13] - The anticipated slowdown in renewable energy construction does not imply a complete decline, as electricity demand continues to grow at a CAGR of 1.5-2% [28][40] - Historical context indicates that previous cuts to renewable tax credits led to significant underperformance in the sector, suggesting potential risks ahead [46] - The bonus depreciation changes are expected to lead to mid-single-digit earnings growth for companies like Oshkosh, Eaton, and United Rentals [79][82] Company Ratings and Price Targets - **Outperform Ratings**: Trimble (TP $99), Jacobs (TP $163), PACCAR (TP $118), Eaton (TP $410), Hubbell (TP $511) [7][8] - **Market-Perform Ratings**: AGCO (TP $118), Caterpillar (TP $447), Deere (TP $548), Cummins (TP $385), United Rentals (TP $885), Titan America (TP $15), Oshkosh (TP $132), Quanta (TP $410) [7][8] This summary encapsulates the key points discussed in the conference call, highlighting the implications of policy changes on various sectors and companies within the U.S. Machinery and Electricals industry.

Group 1 - The article highlights that Oshkosh Corp. (NYSE: OSK) is experiencing strong business momentum, supported by solid fundamentals, making it an attractive investment opportunity [1][2] - The investing group "Value In Corporate Events" focuses on identifying opportunities related to IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation changes, covering approximately 10 major events monthly [2] - The analyst has a beneficial long position in Oshkosh Corp. shares, indicating confidence in the company's future performance [2] Group 2 - The article emphasizes the importance of execution in the investment strategy for Oshkosh Corp., suggesting that the company is on track for continued success [1] - The service provided by the investing group aims to deliver actionable ideas based on significant corporate events, which can help investors capitalize on market opportunities [2] - The article does not provide specific financial metrics or projections for Oshkosh Corp., focusing instead on qualitative assessments of the company's performance [1][2]

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Viewpoints - The overseas aerial work platform industry continues to show positive growth, with equipment rental income maintaining year-on-year growth in Q2 2025. The largest rental company, United Rentals, expects capital expenditure to remain at historical highs for the entire year of 2025 [2][6] - Leading manufacturers have seen an increase in new orders year-on-year in Q2 2025, with JLG's new orders returning to historical median levels, indicating stabilization in order volumes [2][8] Summary by Sections Overseas Rental Companies - United Rentals reported Q2 2025 equipment rental income of $3.415 billion, a year-on-year increase of 6.2%. The capital expenditure for Q2 2025 was $1.460 billion, up 7.7% year-on-year, with a total expected capital expenditure for 2025 projected to be between $3.65 billion and $3.95 billion, reflecting a slight year-on-year increase of 1.2% [6][19][25] - Sunbelt's Q1 2025 revenue was $2.308 billion, down 3.7% year-on-year, with capital expenditure of $1.808 billion, a decrease of 47% year-on-year. The company has increased its rental outlets in the U.S. [7][31][33] Overseas Equipment Manufacturers - Terex, under the Genie brand, reported Q2 2025 revenue of $607 million, down 17.1% year-on-year, but new orders increased by 70% year-on-year to $310 million. The backlog of orders was $714 million, down 36% year-on-year [8][41] - Oshkosh, which owns the JLG brand, reported Q2 2025 revenue of $638 million, a decline of 5.6% year-on-year, while new orders increased by 45% year-on-year to $640 million. The backlog of orders was $1.189 billion, down 64% year-on-year [8][48]

Core Viewpoint - Oshkosh reported strong adjusted earnings per share for Q2 2025, but faced challenges in revenue and backlog, particularly in the Access segment, while management raised full-year earnings guidance due to improved cost visibility and execution [1][5][11] Financial Performance - Adjusted earnings per share (non-GAAP) were $3.41, exceeding estimates by $0.46, while GAAP revenue was $2.73 billion, down 4.2% year-over-year [2][5] - Operating income (GAAP) increased by 11.8% to $291.7 million, and net income (GAAP) rose 21.5% to $204.8 million [2] - The Vocational segment saw a 15.0% increase in sales to $969.7 million, with operating income jumping 38.3% [6] - The Access segment experienced a 10.7% decline in sales to $1,256.0 million, with backlog dropping over 60% [7] Segment Analysis - The Transport segment's sales fell 16.2% to $479.1 million, but backlog grew to $6.7 billion, indicating future security [8] - Key product launches included new electric vehicles and a micro-sized scissor lift, reflecting the company's focus on innovation and sustainability [9][10] Strategic Outlook - Management raised full-year adjusted earnings guidance to approximately $11.00 for fiscal 2025, with GAAP earnings per share expected at $10.25 and sales projected at $10.6 billion [11] - The company is implementing cost-cutting measures and tariff mitigation efforts, anticipating less impact from tariffs than previously expected [11][12]

Core Insights - Oshkosh reported revenue of $2.73 billion for the quarter ended June 2025, a decrease of 4% year-over-year, while EPS increased to $3.41 from $3.34 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.65 billion by 3.15%, and the EPS surpassed the consensus estimate of $2.98 by 14.43% [1] Financial Performance Metrics - Vocational net sales totaled $969.7 million, exceeding the average estimate of $960.02 million by analysts, reflecting a year-over-year increase of 15% [4] - Defense net sales were reported at $372 million, significantly below the estimated $462.81 million, marking a year-over-year decline of 37.9% [4] - Access total net sales reached $1.26 billion, surpassing the average estimate of $1.19 billion, but showed a year-over-year decrease of 10.7% [4] - Corporate and other net sales were $27.3 million, exceeding the estimated $17.17 million, but this represented a drastic year-over-year decline of 1616.7% [4] - Aerial work platforms net sales were $638 million, above the estimated $549.91 million, with a year-over-year decrease of 5.6% [4] - Other access net sales were $292.9 million, exceeding the estimate of $258.5 million, reflecting a year-over-year decline of 3.2% [4] - Telehandlers net sales were $325.1 million, below the estimated $364.06 million, with a year-over-year decline of 24.2% [4] Operating Income - Adjusted operating income for the Access segment was $185.7 million, surpassing the average estimate of $160.28 million [4] - Adjusted operating income for the Vocational segment was $157.9 million, compared to the average estimate of $151.82 million [4] - The adjusted corporate and other operating loss was $-48.5 million, slightly worse than the estimated loss of $-47.35 million [4] - Vocational operating income was $147.3 million, slightly below the estimated $148.98 million [4] - Access operating income was reported at $181.6 million, exceeding the estimate of $165.44 million [4] Stock Performance - Oshkosh shares returned +1.9% over the past month, compared to a +2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported consolidated sales of $2.7 billion for Q2 2025, a decrease of $115 million or 4% from the same quarter last year, primarily due to lower sales volume in the Access and Transport segments [18] - Adjusted operating income was $313 million, down slightly from the prior year, with an adjusted operating income margin of 11.5%, consistent with the prior year despite lower sales [18][19] - Adjusted earnings per share (EPS) was $3.41, an increase of 2.1% over the prior year [7][19] - Free cash flow for the quarter was $49 million, significantly higher than the net use of cash of $251 million in the previous year [19] Business Segment Data and Key Metrics Changes - The Access segment delivered resilient adjusted operating income margins of 14.8% on sales of $1.26 billion, despite a sales decline of $151 million compared to last year [19] - The Vocational segment achieved an adjusted operating income margin of 16.3% on $970 million of sales, reflecting a 220 basis point increase from last year due to improved price-cost dynamics [20] - The Transport segment improved its operating income margin to 3.7% from 2.1% last year, despite a revenue decrease of $93 million to $479 million [20] Market Data and Key Metrics Changes - Market conditions for access equipment in North America were in line with expectations, with sales volume in Europe experiencing a decline [19][20] - The company noted a return to normative levels in the book-to-bill ratio, indicating a stable demand environment [45] Company Strategy and Development Direction - The company aims for a compound annual revenue growth rate of 7% to 10% and transformative margin expansion of 200 to 400 basis points by 2028 [10] - The strategy focuses on accelerated innovation in autonomy, electrification, and intelligent connected products, supported by favorable long-term trends [6][10] - The company signed a three-year sole source contract for the FMTV program with the Department of Defense, which is expected to yield favorable returns [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in offsetting tariff impacts through mitigation strategies and local production initiatives [39] - The company anticipates a more limited impact from tariffs compared to previous quarters, projecting adjusted EPS for the year to be in the range of $11 per share on revenues of approximately $10.6 billion [22] - Management highlighted strong demand in infrastructure and data center projects, which are expected to drive future growth [47][48] Other Important Information - The company has increased its outlook for free cash flow from a range of $300 million to $400 million to a range of $400 million to $500 million, reflecting recent tax changes and improved operating performance [22] - Share repurchases for the year are expected to increase significantly, with nearly $70 million repurchased year-to-date [19][77] Q&A Session Summary Question: Access segment margin expectations for the second half - Management indicated that the second half results would be influenced by seasonality and expected cost impacts from tariffs, particularly in Q4 [28][30] Question: Clarification on tariff impacts - Management acknowledged ongoing tariff headwinds but expressed confidence in their mitigation strategies and local production advantages [39] Question: Expectations for Access revenues and margins - Management expects Access revenues to return to normal seasonality, with a strong third quarter followed by a dip in the fourth quarter [86] Question: Vocational segment performance - Management confirmed that the strong performance in the fire segment is expected to continue, with ongoing investments in capacity [68] Question: Capital allocation and share buybacks - Management outlined a framework prioritizing maintaining a strong balance sheet, organic growth, and share repurchases, even at current stock price levels [98]

Financial Data and Key Metrics Changes - The company reported consolidated sales of $2.7 billion for Q2 2025, a decrease of $115 million or 4% from the same quarter last year, primarily due to lower sales volume in the Access and Transport segments [16] - Adjusted operating income was $313 million, slightly down from the prior year, with an adjusted operating income margin of 11.5%, consistent with the prior year despite lower sales [16] - Adjusted earnings per share (EPS) was $3.41, an increase of $0.07 or 2.1% over the prior year [6][17] Business Line Data and Key Metrics Changes - The Access segment delivered resilient adjusted operating income margins of 14.8% on sales of $1.26 billion, despite a $151 million decrease in sales compared to last year [17] - The Vocational segment achieved an adjusted operating income margin of 16.3% on $970 million of sales, a 220 basis point increase from last year, reflecting improved price-cost dynamics [18] - The Transport segment improved its operating income margin to 3.7% from 2.1% last year, despite a $93 million decrease in sales to $479 million [18] Market Data and Key Metrics Changes - Market conditions for access equipment in North America were in line with expectations, with sales volume in Europe lower, partially offset by sales at IUSA [17] - The company noted a return to normative levels in the book-to-bill ratio, indicating a stable demand environment [42] Company Strategy and Development Direction - The company aims for a compound annual revenue growth rate of 7% to 10% and transformative margin expansion of 200 to 400 basis points by 2028 [8] - The strategy focuses on accelerated innovation in autonomy, electrification, and intelligent connected products, supported by favorable long-term trends [5] - The company is committed to executing its strategies despite uncertainties introduced by tariffs, believing that industry-leading businesses will provide long-term growth opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to offset tariff impacts through mitigation strategies and local production [36] - The company anticipates a more limited impact from tariffs compared to the previous quarter and expects adjusted EPS for the year to be in the range of $11 per share on revenues of approximately $10.6 billion [20] - Management highlighted strong demand from infrastructure spending and data centers, which are expected to drive future growth [45][100] Other Important Information - The company has increased its outlook for free cash flow from a range of $300 million to $400 million to a range of $400 million to $500 million, reflecting improved operating performance [20] - The company stepped up share repurchases, buying back nearly 415,000 shares for about $40 million in the quarter [17] Q&A Session Summary Question: Access segment margin expectations for the second half - Management indicated that the second half results would reflect seasonality and expected some impact from tariffs in the fourth quarter, with pricing adjustments being implemented [26][30] Question: Clarification on tariff commentary - Management acknowledged ongoing tariff headwinds but expressed confidence in their mitigation strategies and local production advantages [36] Question: Expectations for orders in the second half - Management noted a healthy backlog and expected to continue booking orders in the third and fourth quarters, which is typical for this time of year [52] Question: Vocational segment performance and backlog - Management confirmed that the strong performance in the vocational segment is expected to continue, driven by increased capacity and demand for advanced technology [64] Question: Capital allocation and share buybacks - Management outlined priorities for capital allocation, emphasizing maintaining a strong balance sheet, organic growth, and share repurchases, even at current stock price levels [90]

Company Performance - Oshkosh reported quarterly earnings of $3.41 per share, exceeding the Zacks Consensus Estimate of $2.98 per share, and showing an increase from $3.34 per share a year ago [1] - The earnings surprise for this quarter was +14.43%, while the previous quarter had a surprise of -4.95% with actual earnings of $1.92 per share against an expectation of $2.02 [2] - The company posted revenues of $2.73 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.15%, although this represents a decline from $2.85 billion in the same quarter last year [3] Stock Performance - Oshkosh shares have increased approximately 33.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.8% [4] - The current consensus EPS estimate for the upcoming quarter is $2.88 on revenues of $2.7 billion, and for the current fiscal year, it is $10.29 on revenues of $10.38 billion [8] Industry Outlook - The Manufacturing - General Industrial industry, to which Oshkosh belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [6]