A.O Smith stock: buy or sell?

AOS stock price: $47.48 -2.08% At close on September 20th, 2019

Updated on:
September 20th, 2019

2

A.O Smith shares fell -2.08% to $47.48 today. Friday was the third red session in a row, sliding in full a -3.45%.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with A.O Smith stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is A.O Smith stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 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 closed today at $47.48 and fell a tragic -2.08%.

Shares of A.O Smith ended today at $47.48 and fell a tragic -2.08%. In this session, A.O Smith stock crossed down the SMA200d line. If you are using SMA200d line as stop loss trigger, double check your position in this stock. AOS is retaking the upward trend marking a new rising bottom heading to break out over $51.94.

AOS stock chart (daily)

Weekly outlook

A.O Smith shares plunged -5.49% this week, ending at $47.48.

A.O Smith stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies.

AOS stock chart (weekly)

A.O Smith stock price history

A.O Smith IPO was on April 24th, 1990 at $0.01 per share1. Since then, AOS stock surged a 474,700.00%, with an average of 16,369.00% per year. If you had invested $1,000 in A.O Smith stock in 1990, it would worth $4,747,000.00 today.

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

A.O Smith stock historical price chart

AOS stock reached 52-week highs 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

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 2 price targets for AOS stock posted in the last 30 days:
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%
The price prediction for A.O Smith stock is $59.00, moving in a range between $60.00 and $58.00. In average, analysts' outlook on AOS price target is positive, increasing 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 . As soon as we get its posted EPS from the earnings report, we will update this report.
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

Compared to 2017, last anual sales report draw a remarkable growth of 6.38% to $3,187.90 M USD. In the same way, its profit margin (compared to sales) grew to 13.93%, that is $444.20 million.

A.O Smith fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, A.O Smith TTM sales up to March 2019 were $3,148.10 and income $434.70 million USD. When comparing this TTM figures with the last reported annuality, we can review A.O Smith business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, decreased a bad -1.25%. Aligned with this, profit margin (net income/revenues) remained stable at 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 posted $748.20 million in sales for 2019-Q1, a -7.91% decline compared to previous quarter. Reported quarter income marked $89.30 million with a profit margin of 11.94%. Profit margin decreased a -3.61% compared to previous quarter when profit margin was 15.54%. When comparing sales to same quarter last year, A.O Smith sales marked a fatal decrease and eased 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 stock, it's always worth to review 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.

For a better context understanding, the next table shows ownership data compared to other related stocks:

AOSAAONAMSCBWXTCUO
Market cap$6.6 B$2.6 B$187.2 M$5.7 B$26.0 M
Total shares138.4 M52.1 M21.6 M95.2 M1.7 M
Float shares135.1 M40.5 M15.8 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, September 20th, 2019
Open$48.59
Close$47.48
Day range$47.36 - $48.73
Previous close$48.49
Session gain-2.08%
Average true range$1.24
50d mov avg$46.07
100d mov avg$45.90
200d mov avg$47.50
Daily patternlb02a
Weekly pattern lt06a

A.O Smith performance

To better understand A.O Smith performance you must compare its gains with other related stocks in same sector or industry. We compared A.O Smith against AAON, American Superconductor, BWX Technologies, Continental Materials, Franklin Electric, Lennox International, Lsb Industries and Regal Beloit in the following table:
Stock3m6m12m
AOSA.O Smith3.80%-7.41%-18.99%
AAON 3.03%17.38%25.37%
AMSCAmerican Supercon...1.05%-28.50%31.91%
BWXTBWX Technologies17.35%24.72%-3.65%
CUOContinental Mater...-17.39%-20.00%-5.59%
FELEFranklin Electric3.62%-3.80%1.30%
LIILennox Internatio...-9.58%-5.44%12.85%
LXULsb Industries69.39%-12.63%-40.10%
RBCRegal Beloit-9.46%-8.63%-13.31%

A.O Smith competitors

One check before investing in any stock is to review a list of its competitors, in this case for A.O Smith. We selected 8 companies as A.O Smith competitors as they are in the same industry or have similar market objectives.