Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets continued their trend in the second quarter and the S&P 500 Index rose 4.28%. “Magnificent 7” drove the rally once again. The composite returned -1.55% gross of fees (‐1.61% net of fees) in the second quarter outperforming the ‐2.17% return of the Russell 1000 Value Index and trailing the 4.28% return of the S&P 500 Index. Security selection led the composite to outperform in the quarter relative to the Russell 1000 Value Index, while allocation effects detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Aristotle Capital Value Equity Strategy highlighted stocks like Oshkosh Corporation (NYSE:OSK), in the second quarter 2024 investor letter. Oshkosh Corporation (NYSE:OSK) is a purpose-built vehicle and equipment provider. The one-month return of Oshkosh Corporation (NYSE:OSK) was -2.57%, and its shares gained 14.40% of their value over the last 52 weeks. On July 10, 2024, Oshkosh Corporation (NYSE:OSK) stock closed at $103.69 per share with a market capitalization of $6.781 billion.
Aristotle Capital Value Equity Strategy stated the following regarding Oshkosh Corporation (NYSE:OSK) in its Q2 2024 investor letter:
Oshkosh Corporation (NYSE:OSK), a manufacturer of purpose‐built vehicles worldwide, was a main detractor during the quarter. Despite a decline in share price, the company has seen fundamental improvements and strong demand for its vehicles, including an increasing backlog of orders for fire trucks. As such, revenue for Oshkosh’s Vocational segment was up over 35% year‐over‐year. We believe this segment should be able to expand its margins, particularly as the company was awarded a contract to produce the “Next Generation Delivery Vehicle” for the U.S. Postal Service, which should begin to ramp up at the beginning of next year. This contract could generate in excess of $6 billion in revenue for the company. Furthermore, we continue to believe that Oshkosh is a high‐quality business that should be able to create innovative equipment and gain market share across segments. This includes its aerial work platforms as global safety standards increase around the world.
A worker welding an intricate frame in a factory for heavy construction machinery.
Oshkosh Corporation (NYSE:OSK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Oshkosh Corporation (NYSE:OSK) at the end of the first quarter which was 28 in the previous quarter. For the first quarter of 2024, Oshkosh Corporation’s (NYSE:OSK) adjusted operating income increased by 80%, resulting in an adjusted operating margin of 10.8% and adjusted EPS of $2.89. While we acknowledge the potential of Oshkosh Corporation (NYSE: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We discussed Oshkosh Corporation (NYSE:OSK) in another article and shared the list of largest truck manufacturers in the world. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
