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Oshkosh (OSK) Secures $591.61 Million Contract From DoD

Oshkosh Corporation OSK has won a contract worth $591.61 million from the U.S. Department of Defense (“DoD”)  to produce 1,669 Joint Light Tactical Vehicle (JLTV) trucks and 868 trailers and associated kits and parts.

The government body has stated that the vehicles are to be used by all divisions of the U.S. military (Army, Marines, Air Force and Navy). It also plans to make the vehicles available to foreign countries such as Slovenia, Montenegro, Brazil and Lithuania through foreign military aid to allies.

The work is scheduled to be completed by Aug 31, 2023.

Oshkosh is a Wisconsin-based designer, manufacturer and seller of a varied range of vehicle bodies and specialty vehicles. The primary markets, which the company caters, consist of defense, concrete placement, refuse hauling, access equipment, and fire and emergency.

Oshkosh’s defense end market provides a hedge against economic cycles and disruptions. Significant program wins in its Defense segment augurs well. For instance, the 10-year contract from the United States Postal Service to modernize its fleet of postal delivery vehicles positions Oshkosh well for growth. In June, the company won U.S. Army's Stryker MCWS contract worth up to $943 million, which will also aid top-line growth.

In the last reported quarter, OSK’s Defense segment’s net sales edged up 5.1% year over year to $650.2 million, led by higher JLTV program volume and sales from the Pratt Miller acquisition.

Oshkosh’s shares have rallied 38.8% over the past year against the industry’s 32.7% decline. The company’s estimated earnings growth rate for the current year is pegged at 18.1%.

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Zacks Rank & Key Picks

Oshkosh currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked peers in the same space include Goodyear GT, flaunting a Zacks Rank #1 (Strong Buy) and Genuine Parts GPC and Dorman Products DORM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 77% upward over the last 60 days.

Goodyear beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 228.5%, on average. Its shares have also gained around 125.1% over a year.

Genuine Parts has an expected earnings growth rate of 27.3% for the current year. The Zacks Consensus Estimate for the current year has been revised around 5% upward over the past 60 days.

Genuine Parts beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 16%, on average. Its shares have rallied around 36.5% over a year.

Dorman has an expected earnings growth rate of 36% for the current year. The Zacks Consensus Estimate for the current year has been revised 2% upward over the past 60 days.

Dorman beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 10.41%, on average. Its shares have also rallied around 23.9% over a year.


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Genuine Parts Company (GPC): Free Stock Analysis Report
 
The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report
 
Oshkosh Corporation (OSK): Free Stock Analysis Report
 
Dorman Products, Inc. (DORM): Free Stock Analysis Report
 
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