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Here's How Much a $1000 Investment in A.O. Smith Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in A.O. Smith (AOS - Free Report) ten years ago? It may not have been easy to hold on to AOS for all that time, but if you did, how much would your investment be worth today?
A.O. Smith's Business In-Depth
With that in mind, let's take a look at A.O. Smith's main business drivers.
Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.
A. O. Smith reports operations under two geographic segments — North America and Rest of World. The segments are briefly discussed below:
North America (75.9% of total segmental sales generated in 2023): This segment engages in manufacturing and marketing of water heaters, boilers, water treatment products, commercial solar water heating systems, expansion tanks, swimming pool and spa heaters, and others. These products are sold primarily to the company's commercial and residential customers in North America.
Main product brands under this segment are Lochinvar, Aquasana, Bradford White, Rheem, Rinnai, Navien and Aerco.
Rest of World (24.1% of total segmental sales generated in 2023): This segment comprises operations in India, China, the Middle East and Europe markets. It primarily manufactures and markets vast products, including fully modulating non-condensing gas tankless water heater. Apart from this, the segment manufactures air purifier and water treatment products, especially in Asia.
In China, the company develops water purifier, combi boiler, gas tankless, residential & commercial heat pump, air purifier, and other products.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in A.O. Smith ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $3,783.38, or a gain of 278.34%, as of April 3, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 175.31% and gold's return of 70.18% over the same time frame.
Analysts are forecasting more upside for AOS too.
A. O. Smith is benefiting from higher shipments driven by improving supply chains. Higher water heater volumes in North America and higher kitchen product sales in China are supporting the North America segment’s performance. The introduction of kitchen appliance products in China is driving revenues in the Rest of the World segment. The company’s efforts to return value to shareholders add to its appeal. However, lower boiler sales in the North America unit remain a concern for the company. Weakened consumer confidence in a challenged real estate and housing market in China is worrisome. A. O. Smith has been dealing with high costs, which might affect its margins in the quarters ahead. Foreign currency headwinds are added concerns for it. Amid these negatives, shares of the company have underperformed its industry in a year.
Over the past four weeks, shares have rallied 5.81%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in A.O. Smith Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in A.O. Smith (AOS - Free Report) ten years ago? It may not have been easy to hold on to AOS for all that time, but if you did, how much would your investment be worth today?
A.O. Smith's Business In-Depth
With that in mind, let's take a look at A.O. Smith's main business drivers.
Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.
A. O. Smith reports operations under two geographic segments — North America and Rest of World. The segments are briefly discussed below:
North America (75.9% of total segmental sales generated in 2023): This segment engages in manufacturing and marketing of water heaters, boilers, water treatment products, commercial solar water heating systems, expansion tanks, swimming pool and spa heaters, and others. These products are sold primarily to the company's commercial and residential customers in North America.
Main product brands under this segment are Lochinvar, Aquasana, Bradford White, Rheem, Rinnai, Navien and Aerco.
Rest of World (24.1% of total segmental sales generated in 2023): This segment comprises operations in India, China, the Middle East and Europe markets. It primarily manufactures and markets vast products, including fully modulating non-condensing gas tankless water heater. Apart from this, the segment manufactures air purifier and water treatment products, especially in Asia.
In China, the company develops water purifier, combi boiler, gas tankless, residential & commercial heat pump, air purifier, and other products.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in A.O. Smith ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $3,783.38, or a gain of 278.34%, as of April 3, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 175.31% and gold's return of 70.18% over the same time frame.
Analysts are forecasting more upside for AOS too.
A. O. Smith is benefiting from higher shipments driven by improving supply chains. Higher water heater volumes in North America and higher kitchen product sales in China are supporting the North America segment’s performance. The introduction of kitchen appliance products in China is driving revenues in the Rest of the World segment. The company’s efforts to return value to shareholders add to its appeal. However, lower boiler sales in the North America unit remain a concern for the company. Weakened consumer confidence in a challenged real estate and housing market in China is worrisome. A. O. Smith has been dealing with high costs, which might affect its margins in the quarters ahead. Foreign currency headwinds are added concerns for it. Amid these negatives, shares of the company have underperformed its industry in a year.
Over the past four weeks, shares have rallied 5.81%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.