A Closer Look at 4 Analyst Recommendations For A.O. Smith

A.O. Smith AOS underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $83.0, along with a high estimate of $91.00 and a low estimate of $80.00. This current average is unchanged from the previous average price target.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive A.O. Smith is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to A.O. Smith. This insight gives a snapshot of analysts' perspectives on 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.

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.

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.

A.O. Smith's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining A.O. Smith's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.61% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: A.O. Smith's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 15.25%, the company may face hurdles in effective cost management.

Return on Equity (ROE): A.O. Smith's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 8.24%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): A.O. Smith's ROA excels beyond industry benchmarks, reaching 4.9%. This signifies efficient management of assets and strong financial health.

Debt Management: A.O. Smith's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.09.

What Are Analyst Ratings?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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