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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Experts are optimistic about A.O. Smith's future due to the increasing demand for water filtration and boilers, especially with population growth being a major global trend. Despite sales struggles in China, the company has seen success in India, and dividends have been consistently growing. There is belief in the potential for a catalyst to unlock the company's value. Compound annual returns have been strong, and while there may be a slowdown in US construction, long-term growth is expected in China. Overall, water remains a significant global concern, and the company is well-positioned to capitalize on this.

Consensus
Optimistic
Valuation
Undervalued
BUY
A.O. Smith

Water filtration and boilers. Big trend around the world with population growth. Stumbled on sales in China, whose economy is struggling. Moving into India, where it's been a great success. Future is bright. Add to your position if you're not already overweight.

Dividends grew 13% last year, 11% per year over 5 years, 35% per year over 10 years. Getting paid to wait. Sometimes the market just doesn't recognize the value of a company, and then some catalyst (impossible to know what or when) comes along to unlock value.

misc industrial products
BUY
A.O. Smith

Compound annual returns have been 14% over 10 years, 17% over 20. He's owned this for a long time and sees no reason to sell it. Yes, a slowdown in US construction effects part of their business, but there will be long-term growth in China. Growth rates will endure. Water remains a major issue in the world.

misc industrial products
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TOP PICK
A.O. Smith

A. O. Smith Corporation, with headquarters in Milwaukee, Wis., is a global leader applying innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. The Company is one of the world's leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment and air purification products. Social media mentions are up 500% in the past 24h.

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COMMENT
A.O. Smith

Heating and thermostats are a good space, but he prefers Carrier for their European acquisition.

misc industrial products
HOLD
A.O. Smith
Lower multiple at 18x earnings. Water purification as well as fuel-efficient water heaters. Lower price to book and price to sales. Dividend growth rate in 15% range.
misc industrial products
BUY
A.O. Smith
They make water boilers for homes and businesses. Has owned this since 2014. Buy now on weakness. They US their biggest market, but they're also growing in China and India. He's not worried about a recession, because homeowners are chained to their homes and won't move, so they will have to replace their water heaters/boilers eventually.
misc industrial products
BUY
A.O. Smith
Commercial and residential water heaters and purification systems. Still likes it. Not a good entry point right now, but getting close. Has not been disappointed owning this. Good chance for more demand with infrastructure renewal. New homes are also a tailwind. Good long term investments. Buy around 20% off highs, so around high $15.
misc industrial products
HOLD
A.O. Smith
Fundamentals are still good. Positive organic growth from US water purification business. Increase in residential water heaters in US. Flattened losses in China and India. Trading at 24x earnings, not that bad in today's market. Dividend has continued to grow. They'll be part of any breakout in the economy.
misc industrial products
BUY
A.O. Smith
Water boilers and filtration technology. Increasing penetration into India, and this will be the catalyst. Grows free cash flow by about 12% per year. Dividend has grown by about 22% over the last 5 years.
misc industrial products
BUY
A.O. Smith
You have to think not only about their water purification in India and China. They sold off inventories within China so they could sell upscaled equipment that are energy efficient. Their North American side of the business is also not to be neglected. Their sales here are 50% of the business with water purification, water heaters and air purification. In India, they are building revenue and will start making profit there too. The dividend continues to grow above average, and earnings for next year are between 2.40 -2.50 a share which is 20x earnings. If it goes down $5, he would be interested in adding to a position.
misc industrial products
HOLD
A.O. Smith
A water and air purification as well as water-heater seller. There were issues with China but India is a bigger growth opportunity. They raised dividends by 12% and the business will continue to build out. Even without China, the return on invested capital is 28%. Water purification is a secular trend. In US, the demand is still there.
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PAST TOP PICK
A.O. Smith
(A Top Pick Oct 12/18, Up 2%) They have come back to levels before the China war. China is only 1/3 of the business' revenue. They also have business in India and US for water purification, heating, and others. This company continues to be working in the water purification sector. They raised dividends by 9%. This will depend on how the US-China trade war wraps up.
misc industrial products
WATCH
A.O. Smith

The predominant manufacturer of water heaters in North America. A business that is relatively stable, with replacements and new housing starts. They also have exposure to China, where they are a major supplier. The growth has been good in China, but he does not know what the future is there as China has built empty cities. Only when the buildings are occupied do their products get purchased there.

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PAST TOP PICK
A.O. Smith
(A Top Pick Oct 12/18, Down 8%) Problem with slowdown in China where 35% of their revenue comes from. The demand is not growing at the same pace as before. Indian air and water purification business revenue is up 30% and this is their next move.
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PARTIAL BUY
A.O. Smith
China sales make up 1/3 of sales. Shortsellers have targeted it. Company says shortseller's information is not true or fair. Starting water treatment business in India. Next year will be sluggish. Plenty of cash available, and they'll buy back shares. Once China gets straightened out, they'll be fine. Could buy a half position today. Yield is about 4.5%.
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Showing 1 to 15 of 29 entries

A.O. Smith(AOS-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for A.O. Smith is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

A.O. Smith(AOS-N) Frequently Asked Questions

What is A.O. Smith stock symbol?

A.O. Smith is a American stock, trading under the symbol AOS-N on the New York Stock Exchange (AOS). It is usually referred to as NYSE:AOS or AOS-N

Is A.O. Smith a buy or a sell?

In the last year, 2 stock analysts published opinions about AOS-N. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for A.O. Smith.

Is A.O. Smith a good investment or a top pick?

A.O. Smith was recommended as a Top Pick by on . Read the latest stock experts ratings for A.O. Smith.

Why is A.O. Smith stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is A.O. Smith worth watching?

2 stock analysts on Stockchase covered A.O. Smith In the last year. It is a trending stock that is worth watching.

What is A.O. Smith stock price?

On 2024-12-13, A.O. Smith (AOS-N) stock closed at a price of $72.49.