A.O. Smith Stock: A Deep Dive Into Analyst Perspectives (5 Ratings)
Analysts' ratings for A.O. Smith (NYSE:AOS) over the last quarter vary from bullish to bearish, as provided by 5 analysts.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 3 | 0 | 1 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 1 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $90.4, with a high estimate of $98.00 and a low estimate of $75.00. This upward trend is apparent, with the current average reflecting a 3.43% increase from the previous average price target of $87.40.
Analyzing Analyst Ratings: A Detailed Breakdown
The standing of A.O. Smith among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Nathan Jones | Stifel | Raises | Buy | $98.00 | $97.00 |
| Nathan Jones | Stifel | Raises | Hold | $97.00 | $90.00 |
| 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 |
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: Understanding forecasts, analysts offer estimates for A.O. Smith's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into A.O. Smith's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on A.O. Smith analyst ratings.
Discovering A.O. Smith: A Closer Look
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: 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.
Revenue Growth: Over the 3 months period, A.O. Smith showcased positive performance, achieving a revenue growth rate of 1.28% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 15.08%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): A.O. Smith's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.92%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): A.O. Smith's ROA stands out, surpassing industry averages. With an impressive ROA of 4.62%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: A.O. Smith's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
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.
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.