A.O. Smith (AOS) closed at $82.94 in the latest trading session, marking a -1.24% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.42%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today’s trading, shares of the maker of water heaters and boilers had gained 0.37% over the past month. This has outpaced the Industrial Products sector’s gain of 0.21% and lagged the S&P 500’s gain of 0.39% in that time.
Investors will be hoping for strength from A.O. Smith as it approaches its next earnings release, which is expected to be January 27, 2022. The company is expected to report EPS of $0.77, up 4.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $965.74 million, up 15.73% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for A.O. Smith. Recent revisions tend to reflect the latest near-term business trends. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. A.O. Smith currently has a Zacks Rank of #4 (Sell).
In terms of valuation, A.O. Smith is currently trading at a Forward P/E ratio of 23.89. For comparison, its industry has an average Forward P/E of 23.89, which means A.O. Smith is trading at a no noticeable deviation to the group.
Investors should also note that AOS has a PEG ratio of 2.65 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. AOS’s industry had an average PEG ratio of 2.05 as of yesterday’s close.
The Manufacturing – Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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A. O. Smith Corporation (AOS): Free Stock Analysis Report
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