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A.O. Smith (AOS) Gains But Lags Market: What You Should Know
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A.O. Smith (AOS - Free Report) closed the most recent trading day at $68.05, moving +0.07% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.17%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.18%.
Prior to today's trading, shares of the maker of water heaters and boilers had lost 4.29% over the past month. This has lagged the Industrial Products sector's gain of 2.04% and the S&P 500's gain of 0.88% 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 $0.75 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $969.22 million, up 26.04% from the year-ago period.
AOS's full-year Zacks Consensus Estimates are calling for earnings of $3.55 per share and revenue of $4.14 billion. These results would represent year-over-year changes of +19.93% and +16.98%, respectively.
It is also important to note the recent changes to analyst estimates for A.O. Smith. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. A.O. Smith is currently a Zacks Rank #3 (Hold).
Investors should also note A.O. Smith's current valuation metrics, including its Forward P/E ratio of 19.16. Its industry sports an average Forward P/E of 21.45, so we one might conclude that A.O. Smith is trading at a discount comparatively.
Also, we should mention that AOS has a PEG ratio of 2.13. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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A.O. Smith (AOS) Gains But Lags Market: What You Should Know
A.O. Smith (AOS - Free Report) closed the most recent trading day at $68.05, moving +0.07% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.17%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.18%.
Prior to today's trading, shares of the maker of water heaters and boilers had lost 4.29% over the past month. This has lagged the Industrial Products sector's gain of 2.04% and the S&P 500's gain of 0.88% 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 $0.75 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $969.22 million, up 26.04% from the year-ago period.
AOS's full-year Zacks Consensus Estimates are calling for earnings of $3.55 per share and revenue of $4.14 billion. These results would represent year-over-year changes of +19.93% and +16.98%, respectively.
It is also important to note the recent changes to analyst estimates for A.O. Smith. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. A.O. Smith is currently a Zacks Rank #3 (Hold).
Investors should also note A.O. Smith's current valuation metrics, including its Forward P/E ratio of 19.16. Its industry sports an average Forward P/E of 21.45, so we one might conclude that A.O. Smith is trading at a discount comparatively.
Also, we should mention that AOS has a PEG ratio of 2.13. 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. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.