A.O Smith stock: buy or sell?

AOS stock price: $45.01 -3.12% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

1

A.O Smith shares eased -3.12% to $45.01 today.

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, and water treatment products in North America, China, Europe, and India.

Should I buy A.O Smith stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, A.O Smith stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean AOS will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is A.O Smith stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we gathered 5 ratings published for AOS stock in the last month.

Is AOS a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-10Jefferies Financial Groupn/aHold
2019-6-7DA Davidsonn/aBuy
2019-3-12KeyCorpOverweightPositive
2019-1-30BMO Capital MarketsOutperformMarket Perform
2019-1-29Boenning Scattergoodn/aBuy

A.O Smith stock analysis

Daily outlook

A.O Smith eased a terrifying -3.12% and closed at $45.01.

A.O Smith eased a terrifying -3.12% and closed at $45.01. Since last May when AOS stock price broke down the SMA200d line, it slid $-6.12 per share (-11.97%). From a daily perspective, AOS is in a short term uptrend after plotting its last bottom ($44.54, on Aug/14) higher than the previous bottom, and its last top ($47.36, on Monday) also over the previous top. Now trading in between its last bottom and last top AOS might consolidate in a plain range, waiting to break out over $47.36 or down under $44.54.

AOS stock chart (daily)

Weekly outlook

A.O Smith shares fell -2.72% this week, ending at $45.01.

If you observe the weekly chart, price is in a simple uptrend, tested $43.05 level and now climbing back aiming its last top at $47.77. Since price and 40-weeks moving average lines crossed down by mid May, AOS fell $-4.96 per share (-9.93%). Stocks under the 200d moving average line are usually not recommended for average traders.

AOS stock chart (weekly)

A.O Smith stock price history

A.O Smith stock went public on April 24th, 1990 with a price of $0.011. Since then, AOS stock grew a 450,000.00%, with a yearly average of 15,517.20%. If you had invested $1,000 in A.O Smith stock in 1990, it would worth $4,500,000.00 today.

1: Adjusted price after possible price splits or reverse-splits.

A.O Smith stock historical price chart

AOS stock reached 52-week highs on September at $59.94, and all-time highs 2018-01-29 with a price of 66.54.

A.O Smith stock price target is $59.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' AOS stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 2 price predictions for AOS stock:
AOS stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-7DA DavidsonLowers Targetn/a$58.00-
2019-3-12KeyCorpReiterates$53.00$60.0013.2%
(in average)$53.00$59.0011.0%
Moving in a range from $60.00 and $58.00, the price prediction for A.O Smith stock is $59.00. In average, analysts' outlook on AOS price forecast is positive, upgrading the forecast by a 11.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on April, A.O Smith plunged a hair-raising -19.03%. Unfortunately, reported EPS is not yet available in our database.
AOS earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.53n/a
2017-Q32017-10-250.530.541.9%
2017-Q42018-01-300.560.67.1%
2018-Q12018-04-250.580.63.4%
2018-Q22018-07-250.620.666.5%
2018-Q32018-10-300.630.61-3.2%
2018-Q42019-01-290.710.744.2%
2019-Q12019-04-230.57n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, A.O Smith annual revenues rose a very good 6.38% to $3,187.90 M dollars from $2,996.70 marked in 2017. In line, its profit margin (compared to revenues) raised to 13.93%, that is $444.20 million.

To have an up to date view of the financial situation of A.O Smith, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual A.O Smith TTM sales up to March 2019 were $3,148.10 and income was $434.70 M USD. If we compare this TTM figures with the last reported annuality, we can esteem A.O Smith business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, depreciated a lame -1.25%. Regarding profit margin, A.O Smith remained stable -0.13% to 13.93%

AOS annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,150 M-$170 M7.9%-
2014$2,356 M9.58%$208 M8.8%22.45%
2015$2,537 M7.66%$283 M11.2%36.14%
2016$2,686 M5.89%$327 M12.2%15.41%
2017$2,997 M11.57%$297 M9.9%-9.19%
2018$3,188 M6.38%$444 M13.9%49.81%
TTM $3,148 M-1.25%$435 M13.8%-2.14%

Quarterly financial results

A.O Smith reported $748.20 million in revenues for 2019-Q1, a -7.91% less compared to previous quarter. Reported quarter earnings marked $89.30 million with a profit margin of 11.94%. Profit margin declined a -3.61% compared to previous quarter when profit margin was 15.54%. When comparing revenues to same quarter last year, A.O Smith sales marked a rough slide and dropped a -5.05%.
AOS quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$738 M-$92 M12.5%-
2017-Q3$750 M1.58%$94 M12.5%1.41%
2017-Q4$769 M2.49%$23 M3.0%-75.77%
2018-Q1$788 M2.52%$99 M12.5%335.24%
2018-Q2$833 M5.75%$115 M13.7%15.89%
2018-Q3$754 M-9.50%$105 M13.9%-8.65%
2018-Q4$813 M7.74%$126 M15.5%20.75%
2019-Q1$748 M-7.91%$89 M11.9%-29.30%

A.O Smith ownership

When you are planning to invest in a company, it's worth to check its ownership structure.

A.O Smith shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.88% of all shares.

Bearish positions for AOS stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to A.O Smith:

AOSAAONAMSCBWXTCUO
Market cap$6.4 B$2.5 B$166.9 M$5.3 B$26.8 M
Total shares141.1 M52.1 M21.2 M95.2 M1.7 M
Float shares138.7 M40.5 M15.9 M94.8 M0.5 M
  - Institutional holdings (%)98.7%74.5%40.6%104.4%17.1%
  - Insider holdings (%)0.9%22.0%19.1%0.7%78.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

A.O Smith summary

Friday, August 23rd, 2019
Open$46.26
Close$45.01
Day range$44.79 - $46.26
Previous close$46.46
Session gain-3.12%
Average true range$1.16
50d mov avg$45.23
100d mov avg$47.22
200d mov avg$47.30
Daily patternlt06a
Weekly pattern lb01a

A.O Smith performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For A.O Smith, the benchmark is made against AAON, American Superconductor, BWX Technologies, Continental Materials, Franklin Electric, Lennox International, Lsb Industries and Regal Beloit.
Stock3m6m12m
AOSA.O Smith2.74%-14.59%-21.45%
AAON 1.20%11.94%14.67%
AMSCAmerican Supercon...-26.40%-51.06%22.43%
BWXTBWX Technologies17.90%7.01%-9.87%
CUOContinental Mater...-16.00%38.04%-3.96%
FELEFranklin Electric2.26%-16.62%-4.72%
LIILennox Internatio...-6.20%3.71%17.79%
LXULsb Industries7.91%-40.63%-36.71%
RBCRegal Beloit-5.35%-16.38%-14.45%

A.O Smith competitors

We selected a few stocks to conform a list of A.O Smith competitors to examine if you are interested in investing in AOS: