We came across a bullish thesis on Oshkosh Corporation (NYSE:OSK) on wallstreetbets Subreddit Page by wirsteve. In this article, we will summarize the bulls’ thesis on OSK. Oshkosh Corporation (NYSE:OSK)’s share was trading at $93.84 as of Dec 20th. OSK’s trailing and forward P/E were 9.11 and 8.46 respectively according to Yahoo Finance.
A fleet of electric and lifestyle delivery vehicles grouped together in a line.
Oshkosh (NYSE:OSK) is poised for significant upside, with multiple catalysts aligning to drive its stock higher. The company’s groundbreaking partnership with Eatron Technologies has led to the development of AI-driven battery management software (BMS), which enhances the performance, efficiency, and longevity of electric vehicle (EV) batteries. This innovation is particularly attractive to fleet operators, including the U.S. Postal Service (USPS), as it reduces maintenance costs and downtime. Oshkosh may showcase this technology at CES 2025, where new product announcements often spark investor enthusiasm and increase stock volume, further boosting the company’s visibility. If Oshkosh’s CES presentation includes additional fleet innovations or AI-driven advancements, it could significantly impact stock momentum and push its price higher.
The company’s $2.98 billion USPS contract to build 50,000 next-generation delivery vehicles is another key growth driver. While there was initial concern that the contract might be canceled, USPS has confirmed that the plan is proceeding as intended. With Congress earmarking $3 billion to electrify the USPS fleet and a firm statement from Postmaster General Louis DeJoy, the contract is secure, providing Oshkosh with a steady and reliable revenue stream. The political pressure to maintain jobs in South Carolina, where the vehicles are being manufactured, further solidifies the stability of the deal. As this uncertainty fades, Wall Street’s sentiment should shift in favor of Oshkosh, driving the stock price closer to the analyst target of $122.86, which represents a 24% upside from the current level.
The convergence of these two catalysts — the secure USPS contract and the potential CES breakthrough — creates a no-resistance setup for Oshkosh. If both elements materialize as expected, the stock could see a significant re-rating, especially with analysts likely to increase their price targets. The upside potential is amplified by Oshkosh’s innovative technology and strong market position. While risks such as supply chain pressures and the possibility of a lackluster CES presentation exist, the overall outlook remains bullish. As long as the USPS contract continues and the CES showcase delivers, Oshkosh’s stock has a clear path upward, making it an attractive investment opportunity with limited downside risk.
Oshkosh Corporation (NYSE:OSK) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held OSK at the end of the third quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of OSK as an investment, our conviction lies in the belief that some 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 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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Disclosure: None. This article was originally published at Insider Monkey.