Please ensure Javascript is enabled for purposes of website accessibility

Why Oshkosh Stock Traded Higher in March

By Lou Whiteman - Apr 3, 2021 at 10:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A big government win and hopes for future infrastructure spending has this stock shooting higher.

What happened

Oshkosh (OSK -1.25%) soared higher in late February after the truck and equipment maker won a key government contract. The market was still digesting that contract -- and what it might mean for the company -- in March, helping to lift the shares 11.9%, according to data provided by S&P Global Market Intelligence.

So what

The U.S. Postal Service in late February awarded Oshkosh an initial $482 million to modernize its fleet of postal delivery vehicles, a contract that could eventually be worth more than $6 billion. The win was a bit of a surprise, and in early March some lawmakers announced legislation to halt the contract.

Several Post Office vehicles parked in a lot

Image source: Getty Images.

But as the month wore on, the talk of Capitol Hill interference died down, with Postmaster General Louis DeJoy saying he was "pretty confident" about the move.

The company could also be a beneficiary of a planned $2 trillion infrastructure program announced by President Joe Biden mid-month. Citi analyst Timothy Thein raised his price target on Oshkosh thanks to expectations for strong demand for the company's trucks.

Now what

Oshkosh shares are now up nearly 40% year to date and have doubled the gains posted by the S&P 500 index over the past five years. That's a strong run for an industrial stock.

OSK Chart

OSK data by YCharts

There likely isn't another big catalyst like the Post Office contract on the immediate horizon to cause another spike higher, but Oshkosh is a strong, reliable company for long-term shareholders. Even after its run-up, there is a lot to like about this stock.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Oshkosh Corporation Stock Quote
Oshkosh Corporation
$88.50 (-1.25%) $-1.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.