Oshkosh is a leading maker of access equipment, specialty vehicles, and military trucks. It serves diverse end markets, including postal, firefighting, refuse/recycling collection, aviation, and construction. It is typically the market share leader or No. 2 player in North America, or even the global leader in the case of its JLG aerial work platform business. The transport segment is a leading provider of light trucks to the military and vehicles to the Postal Service. The vocational segment, featuring brands such as Pierce, AeroTech, and Volterra, offers purpose-built vehicles and equipment to municipalities. The company reports three segments—Access equipment (45% of revenue), Vocational (35%), and Transport (20%) on 2025 revenue of $10.4 billion.

Oshkosh is a leading maker of access equipment, specialty vehicles, and military trucks. It serves diverse end markets, including postal, firefighting, refuse/recycling collection, aviation, and construction. It is typically the market share leader or No. 2 player in North America, or even the global leader in the case of its JLG aerial work platform business. The transport segment is a leading provider of light trucks to the military and vehicles to the Postal Service. The vocational segment, featuring brands such as Pierce, AeroTech, and Volterra, offers purpose-built vehicles and equipment to municipalities. The company reports three segments—Access equipment (45% of revenue), Vocational (35%), and Transport (20%) on 2025 revenue of $10.4 billion.

Despite bursts of outperformance, small- and mid-cap stocks (SMID) have underperformed large-caps year to date -- as they have over the past six years. But they may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the trade and tariff debate, fallout from unrest in the Middle East, the Russian invasion of Ukraine, issues in China, or other geopolitical developments. As well, the prices of SMID stocks generally are lower than the prices of large-caps, with the P/E ratio on the Russell 2000 SmallCap Index at 20, compared to a trailing P/E of 29 for the S&P 500. Finally, there are long stretches in the record books when SMID stocks have outperformed large-caps. SMID risks do carry risk, but diversified investors look to have exposure to small- and mid-caps based on the long-term performance record.

We reviewed our recommended sector allocations this month, and based on the analysis have adjusted our current sector Over-Weight, Under-Weight, and Market-Weight recommendations for the calendar second quarter of 2026. Our multi-factor model includes a performance-ranking system, which assigns points for monthly, quarterly, and YTD sector performance vs. the benchmark S&P 500; current sector P/E vs. 5-year P/E, with points awarded for a discount to S&P 500 current vs. 5-year P/E delta; two-year earnings growth, with points awarded for exceeding benchmark average and for EPS acceleration; relative performance to the sector group average; sector conviction, meaning BUY rating percentage per sector vs. total Argus BUY rating percentage; and PEG ratio, with points awarded or subtracted based on sector PEG ratios below or above the group average. Our process has led to an upgrade of the Industrial sector to Over-Weight from Market-Weight and a downgrade of the Communication Services sector to Market-Weight from Over-Weight. For more details, see our latest Action Alert or our Portfolio Selector or Investment Portfolio Guide reports. Our rebalancing process takes place four times a year, early in the months of March, June, September, and December. Our current Over-Weight sectors are Financial, Healthcare, Industrial, Utilities, and Information Technology. Our current Market-Weight sectors are Communication Services, Consumer Staples, Energy, and Materials. Our one Under-Weight sector is Consumer Discretionary. The Argus Research Investment Policy Committee suggests that advisors and investors leverage this consistent and comprehensive process to adjust sector weightings within their diversified equity portfolios, with a primary focus on the largest sectors.