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A.O. Smith (AOS) Gains But Lags Market: What You Should Know
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In the latest trading session, A.O. Smith (AOS - Free Report) closed at $64.70, marking a +0.33% move from the previous day. This move lagged the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the maker of water heaters and boilers had lost 2.49% in the past month. In that same time, the Industrial Products sector gained 0.49%, while the S&P 500 gained 4.63%.
A.O. Smith will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. In that report, analysts expect A.O. Smith to post earnings of $0.76 per share. This would mark year-over-year growth of 26.67%. Our most recent consensus estimate is calling for quarterly revenue of $970.22 million, up 26.17% from the year-ago period.
AOS's full-year Zacks Consensus Estimates are calling for earnings of $3.55 per share and revenue of $4.14 billion. These results would represent year-over-year changes of +19.93% and +16.93%, respectively.
Any recent changes to analyst estimates for A.O. Smith should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. A.O. Smith is currently a Zacks Rank #3 (Hold).
Investors should also note A.O. Smith's current valuation metrics, including its Forward P/E ratio of 18.17. Its industry sports an average Forward P/E of 19.25, so we one might conclude that A.O. Smith is trading at a discount comparatively.
It is also worth noting that AOS currently has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AOS in the coming trading sessions, be sure to utilize Zacks.com.
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A.O. Smith (AOS) Gains But Lags Market: What You Should Know
In the latest trading session, A.O. Smith (AOS - Free Report) closed at $64.70, marking a +0.33% move from the previous day. This move lagged the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the maker of water heaters and boilers had lost 2.49% in the past month. In that same time, the Industrial Products sector gained 0.49%, while the S&P 500 gained 4.63%.
A.O. Smith will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. In that report, analysts expect A.O. Smith to post earnings of $0.76 per share. This would mark year-over-year growth of 26.67%. Our most recent consensus estimate is calling for quarterly revenue of $970.22 million, up 26.17% from the year-ago period.
AOS's full-year Zacks Consensus Estimates are calling for earnings of $3.55 per share and revenue of $4.14 billion. These results would represent year-over-year changes of +19.93% and +16.93%, respectively.
Any recent changes to analyst estimates for A.O. Smith should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. A.O. Smith is currently a Zacks Rank #3 (Hold).
Investors should also note A.O. Smith's current valuation metrics, including its Forward P/E ratio of 18.17. Its industry sports an average Forward P/E of 19.25, so we one might conclude that A.O. Smith is trading at a discount comparatively.
It is also worth noting that AOS currently has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AOS in the coming trading sessions, be sure to utilize Zacks.com.