A.O Smith stock: buy or sell?

AOS stock price: $46.93 -1.47% At close on January 17th, 2020

Updated on:
January 17th, 2020

1

A.O Smith shares declined -1.47% to $46.93 yesterday.

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. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with A.O Smith stock situation right now, therefore 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 gathered 3 ratings published for AOS stock in the last 30 days.

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

A.O Smith stock analysis

Daily outlook

A.O Smith shares declined -1.47% to $46.93 yesterday.

A.O Smith shares declined -1.47% to $46.93 yesterday. 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. Since last Dec 27th when SMA100d and SMA200d crossed up, AOS price slipped $-0.81 per share (-1.70%).

AOS stock chart (daily)

Weekly outlook

A.O Smith shares declined -1.45% this week, ending at $46.93.

Having descending tops is not good news for investors in AOS. Although it's only a warning signal, eyes should be on alert during next weeks to identify possible new risks. You should be expectant to A.O Smith price to not slide under , as this would complicate possible price recovery in the short and mid-term. This week, A.O Smith stock lost the significant level of the 40-weeks moving average. Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since SMA20d and SMA40w crossed up by mid December 2019, AOS price climbed $0.41 per share (0.88%).

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 469,200.00%, with a yearly average of 16,179.30%. If you had invested $1,000 in A.O Smith stock in 1990, it would worth $4,692,000.00 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 April at $55.88, and all-time highs 2018-01-29 with a price of 66.22.

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 targets 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%
The price target 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, improving 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 . 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

Compared to 2017, last anual turnover report draw an excellent growth of 6.38% to $3,187.90 M USD. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) raised a 4.04% to 13.93%.

To have an updated 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 million dollars. When comparing this TTM figures with the last reported annuality, we can esteem A.O Smith business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, decreased a disappointing -1.25%. In line, 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 revenues 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 depreciated 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 tragic decrease 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 shares of a company, it's 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 0.91% 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:

AOS
Market cap$6.4 B
Total shares137.1 M
Float shares134.0 M
  - Institutional holdings (%)102.1%
  - Insider holdings (%)0.9%
Shares in short selling0.0%

A.O Smith summary

Friday, January 17th, 2020
Open$47.82
Close$46.93
Day range$46.90 - $47.94
Previous close$47.63
Session gain-1.47%
Average true range$0.89
50d mov avg$48.07
100d mov avg$48.11
200d mov avg$47.51
Daily pattern
Weekly pattern lt01a

A.O Smith performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared A.O Smith against in the following table:
Stock3m6m12m
AOSA.O Smith-7.55%8.76%-0.42%

A.O Smith competitors

Unfortunately, we could not find any public company that could be defined as A.O Smith competitor. This doesn't mean A.O Smith does not have any competitor in the market, it's just we could not detected it.