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A.O. Smith (AOS) Stock Moves -1.67%: What You Should Know

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A.O. Smith (AOS - Free Report) closed the most recent trading day at $83.54, moving -1.67% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.94%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.

Prior to today's trading, shares of the maker of water heaters and boilers had gained 2.5% over the past month. This has lagged the Industrial Products sector's gain of 4.53% and the S&P 500's gain of 5.72% in that time.

Wall Street will be looking for positivity from A.O. Smith as it approaches its next earnings report date. In that report, analysts expect A.O. Smith to post earnings of $0.77 per share. This would mark year-over-year growth of 4.05%. Meanwhile, our latest consensus estimate is calling for revenue of $965.74 million, up 15.73% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for A.O. Smith. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% lower. A.O. Smith currently has a Zacks Rank of #3 (Hold).

In terms of valuation, A.O. Smith is currently trading at a Forward P/E ratio of 24.17. Its industry sports an average Forward P/E of 24.17, so we one might conclude that A.O. Smith is trading at a no noticeable deviation comparatively.

Investors should also note that AOS has a PEG ratio of 2.69 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 2.11 at yesterday's closing price.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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