OSK vs. RACE: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The analysis compares two automotive stocks, Oshkosh (OSK) and Ferrari (RACE), to determine which presents a better value opportunity for investors [5]. Valuation Metrics - OSK has a forward P/E ratio of 9.65, significantly lower than RACE's forward P/E of 50.10, indicating OSK may be undervalued [4]. - The PEG ratio for OSK is 1.05, while RACE's PEG ratio is 4.98, suggesting OSK has a more favorable growth outlook relative to its valuation [4]. - OSK's P/B ratio is 1.84, compared to RACE's P/B of 27.69, further indicating OSK's relative undervaluation [9]. Earnings Outlook - OSK is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, where it holds a 1 (Strong Buy) rating [7][8]. - In contrast, RACE has a Zacks Rank of 3 (Hold), indicating a less favorable earnings revision trend [8]. Investment Strategy - The best approach to identify value stocks is to combine a strong Zacks Rank with a solid Value grade from the Style Scores system, which highlights companies with specific traits [3]. - OSK has earned a Value grade of B, while RACE has a Value grade of C, further supporting the argument for OSK as the superior value option [2].