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If You Invested $1000 in A.O. Smith a Decade Ago, This is How Much It'd Be Worth Now
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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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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 (75.1% of total segmental sales generated in 2022): 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 (24.9% of total segmental sales generated in 2022): 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.
According to our calculations, a $1000 investment made in December 2013 would be worth $3,029.71, or a gain of 202.97%, as of December 14, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 165.14% and gold's return of 57.17% over the same time frame.
Analysts are anticipating more upside for AOS.
Improving supply chains and robust demand for residential water heaters in North America are expected to drive A. O. Smith’s growth. Higher sales from India and improvement in China operations after the pandemic-related shutdowns are supporting the Rest of the World unit’s performance. The company’s improved earnings guidance for 2023 sparks optimism. AOS’ efforts to return value to shareholders add to its appeal. Amid these positives, shares of AOS have outperformed its industry in a year. However, weakness in the core North America unit due to lower boiler sales raises concerns. Given the general weakness in the economy and lower demand, AOS has provided a conservative projection for sales in 2023. Foreign currency woes and an anticipated increase in steel costs may weigh on AOS’ performance in 2023.
Shares have gained 6.04% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in A.O. Smith a Decade Ago, This is How Much It'd Be Worth Now
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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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 (75.1% of total segmental sales generated in 2022): 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 (24.9% of total segmental sales generated in 2022): 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.
According to our calculations, a $1000 investment made in December 2013 would be worth $3,029.71, or a gain of 202.97%, as of December 14, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 165.14% and gold's return of 57.17% over the same time frame.
Analysts are anticipating more upside for AOS.
Improving supply chains and robust demand for residential water heaters in North America are expected to drive A. O. Smith’s growth. Higher sales from India and improvement in China operations after the pandemic-related shutdowns are supporting the Rest of the World unit’s performance. The company’s improved earnings guidance for 2023 sparks optimism. AOS’ efforts to return value to shareholders add to its appeal. Amid these positives, shares of AOS have outperformed its industry in a year. However, weakness in the core North America unit due to lower boiler sales raises concerns. Given the general weakness in the economy and lower demand, AOS has provided a conservative projection for sales in 2023. Foreign currency woes and an anticipated increase in steel costs may weigh on AOS’ performance in 2023.
Shares have gained 6.04% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.