A.O Smith stock: buy or sell?

AOS stock price: $36.85 -1.15% At close on March 27th, 2020

Updated on:
March 27th, 2020

1

After climbing for 4 sessions, Friday A.O Smith declined a lame -1.15%, closing at $36.85. On March/20 AOS plummed a scary -6.04%.

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 plan 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.

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 doesn't mean AOS will slide 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?

Financial institutions and banks publish stock ratings everyday. Unfortunately, we couldn't find any rating for AOS stock for the last month.

A.O Smith stock analysis

Daily outlook

After climbing for 4 days, Friday A.O Smith declined a lame -1.15%, closing at $36.85.

After climbing for 4 sessions, Friday A.O Smith declined a lame -1.15%, closing at $36.85.

AOS stock chart (daily)

Weekly outlook

After sliding a chilling -19.40% in a week last week, A.O Smith closed this week at $36.85 and rocketed a super good 6.04%.

A.O Smith finally fell through the support and now is sliding further looking for new supports. Since mid January, when AOS stock price broke down the 40-weeks moving avarage line, it slid $-10.51 per share (-22.19%). Stocks under the 40-weeks 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 368,400.00%, with a yearly average of 12,703.40%. If you had invested $1,000 in A.O Smith stock in 1990, it would worth $3,684,000.00 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 $55.58, and all-time highs 2018-01-29 with a price of 65.86.

A.O Smith stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable 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. 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. For the last month we have not found any price forecast for A.O Smith stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing 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

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

A.O Smith fiscal year ends in December, and to compare 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 dollars. When comparing this TTM figures with the last reported annuality, we can esteem A.O Smith business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, decreased an ugly -1.25%. Likewise, profit margin (net income/revenues) stayed 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 reported $748.20 million in sales for 2019-Q1, a -7.91% less compared to previous quarter. Reported quarter earnings marked $89.30 M 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 sales to same quarter last year, A.O Smith sales marked a rough slide and fell 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 buy shares of a company, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For A.O Smith, 0.96% of all outstanding shares are owned by its staff.

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$5.1 B
Total shares137.1 M
Float shares133.0 M
  - Institutional holdings (%)104.1%
  - Insider holdings (%)1.0%
Shares in short selling0.0%

A.O Smith summary

Friday, March 27th, 2020
Open$36.29
Close$36.85
Day range$35.64 - $37.70
Previous close$37.28
Session gain-1.15%
Average true range$2.71
50d mov avg$41.78
100d mov avg$44.88
200d mov avg$45.54
Daily patternlt03a
Weekly pattern lt01c

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. We chose as the bechmarking frame for A.O Smith stock.
Stock3m6m12m
AOSA.O Smith-22.50%-21.88%-29.54%

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.