Where A.O. Smith Stands With Analysts

Throughout the last three months, 6 analysts have evaluated A.O. Smith AOS, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $83.33, a high estimate of $91.00, and a low estimate of $78.00. This current average has decreased by 1.96% from the previous average price target of $85.00.

Diving into Analyst Ratings: An In-Depth Exploration

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.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to A.O. Smith. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of A.O. Smith compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of A.O. Smith's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of A.O. Smith's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on A.O. Smith analyst ratings.

Unveiling the Story Behind A.O. Smith

A.O. Smith Corporation manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments, North America (75% of sales) and rest of world (25% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for both residential and commercial markets, with approximately 37% and 54% market share, respectively. Residential water heaters account for Most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered during the mid-1990s.

Financial Insights: A.O. Smith

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Challenges: A.O. Smith's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -3.72%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: A.O. Smith's net margin is impressive, surpassing industry averages. With a net margin of 13.31%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 6.27%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): A.O. Smith's ROA excels beyond industry benchmarks, reaching 3.78%. This signifies efficient management of assets and strong financial health.

Debt Management: A.O. Smith's debt-to-equity ratio is below the industry average at 0.07, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

This article was generated by Benzinga's automated content engine and reviewed by an editor.