During the last three months, 5 analysts shared their evaluations of A.O. Smith AOS, revealing diverse outlooks from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 4 | 0 | 1 |
| Last 30D | 0 | 0 | 0 | 0 | 1 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 4 | 0 | 0 |
Analysts have set 12-month price targets for A.O. Smith, revealing an average target of $87.6, a high estimate of $92.00, and a low estimate of $75.00. This current average has increased by 4.29% from the previous average price target of $84.00.
Investigating Analyst Ratings: An Elaborate Study
The analysis of recent analyst actions sheds light on the perception of A.O. Smith by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Damian Karas | UBS | Raises | Sell | $75.00 | $73.00 |
| Nathan Jones | Stifel | Lowers | Hold | $90.00 | $91.00 |
| Michael Halloran | Baird | Raises | Neutral | $92.00 | $86.00 |
| Nathan Jones | Stifel | Raises | Hold | $91.00 | $85.00 |
| Saree Boroditsky | Jefferies | Raises | Hold | $90.00 | $85.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to A.O. Smith. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of A.O. Smith compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of A.O. Smith's stock. This analysis reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of A.O. Smith's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on A.O. Smith analyst ratings.
Get to Know A.O. Smith Better
A.O. Smith Corporation manufactures and markets comprehensive lines of residential and commercial gas, gas tankless, and electric water heaters. Supplementary products include water heating equipment, condensing and noncondensing boilers, and water system tanks. The company's two operating segments are by geographic region: North America (majority of total revenue) and the Rest of the World. A material portion of sales in North America derive from replacing existing products, and the company utilizes a wholesale distribution channel and multiple selling locations. The Rest of the World segment sells majorly in Asian countries and operates sales offices to expand distribution and market its product portfolio.
Breaking Down A.O. Smith's Financial Performance
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: A.O. Smith's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 1.28%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: A.O. Smith's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.08% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): A.O. Smith's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.92% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): A.O. Smith's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.62% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: A.O. Smith's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.08.
The Significance of Analyst Ratings Explained
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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