10 Undervalued Stocks to Invest in According to Goldman Sachs

1. Oshkosh Corporation (NYSE:OSK)

Forward P/E ratio: 7.60

Number of Hedge Fund Holders: 38

Oshkosh Corporation (NYSE:OSK) is a manufacturer of specialty vehicles and equipment serving defense, fire and emergency, commercial, and construction markets. The company operates through segments including Defense, which supplies tactical vehicles to the US military; Fire & Emergency, which produces fire trucks and rescue vehicles; Commercial, which manufactures concrete mixers and refuse collection trucks; and Access Equipment, which provides aerial work platforms and telehandlers under the JLG brand.

Oshkosh Corporation (NYSE:OSK) is a global company with nearly $11 billion in revenue and approximately 18,000 employees, with 80% of its operations concentrated in North America. The company serves multiple end markets with a focus on delivering productivity and safety solutions through technological advancements in autonomous functionality, analytics, Software as a Service model, and electrification. In the Access segment, despite facing a 15% revenue decline in 2025 due to private nonresidential construction slowdown and changes in the Cat telehandler contract, the company maintains its market leadership position and is expanding into new markets like agriculture.

The Vocational segment shows strong performance with stable markets, robust orders, and backlogs, particularly in municipal fire trucks where backlog extends to 2027-2028 with solid double-digit pricing. The Defense segment is transitioning from JLTV production to NGDV (postal vehicle) production, with postal revenue expected to exceed JLTV losses as production ramps up to full capacity of 16,000-20,000 units annually by the fourth quarter. The company demonstrated its technological capabilities at the CES show, showcasing futuristic autonomous vehicles and solutions for fire trucks, refuse collection, last-mile delivery, and airport operations, which confirms the strong market position and opportunities ahead.

Overall Oshkosh Corporation (NYSE:OSK) ranks 1st on our list of the 10 undervalued stocks to invest in according to Goldman Sachs. While we acknowledge the potential of OSK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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