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AAON Partners With DOE for Heat Pump Accelerator Program

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AAON, Inc. (AAON - Free Report) collaborates with the Department of Energy (“DOE”) for the Better Buildings Commercial Building Heat Pump Accelerator, with its tenure expected between 2024 and 2027.

Under DOE’s Accelerator program, AAON will lead the production process through its high-performance and efficient Alpha Class air-source heat pumps. The Accelerator in discussion will partner with industry stakeholders to quicken the development and the adoption of cold-climate commercial heat pump rooftop units. This will result in integrated energy efficiency and electrification of buildings.

The company’s efforts to offer sustainable and economic solutions with Alpha Class are also visible in its refrigerant transition strategy. With the adoption of R-454B in place of 410A refrigerant ahead of the EPA's mandates, AAON demonstrates its commitment to sustainability and innovation.

AAON shares declined 3.6% during the trading hours but inched up 0.02% in the after-hours trading session on Apr 9.

Productivity Initiatives Bode Well

The company is following several ways to improve its productivity and foster its growth prospects. It intently focuses on enhancing its operational efficiencies, investments in innovation, and pricing strategies to aid its productivity levels and cater to its customer demands.

Focusing on the innovation aspect of the productivity initiatives, on Oct 18, 2023, AAON introduced its advanced lineup of high-performance air-source heat pumps, AAON Alpha Class. The Alpha Class sets a new commercial and industrial air-source heat pump performance standard. It accelerates the adoption of cleaner, more efficient technology, driving the decarbonization movement.

 

Zacks Investment Research
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Shares of this heating, ventilation and air conditioning equipment manufacturer rose 51.7% in the past six months, outperforming the Zacks Building Products - Air Conditioner and Heating industry’s 27.6% growth. Thanks to the improved productivity, the company is optimistic for 2024 and beyond on the back of increasing bookings and growing backlog levels.

Zacks Rank & Key Picks

AAON currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

Armstrong World Industries, Inc. (AWI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AWI delivered a trailing four-quarter earnings surprise of 13.1%, on average. The stock has surged 71.4% in the past year. The Zacks Consensus Estimate for AWI’s 2024 sales and earnings per share (EPS) indicates growth of 4.1% and 7.9%, respectively, from the prior-year reported levels.

Vulcan Materials Company (VMC - Free Report) presently flaunts a Zacks Rank of 1. VMC delivered a trailing four-quarter earnings surprise of 19.5%, on average. The stock has jumped 59.4% in the past year.

The Zacks Consensus Estimate for VMC’s 2024 sales and EPS indicates improvements of 1.3% and 19.7%, respectively, from that reported a year ago.

Sterling Infrastructure, Inc. (STRL - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 20.4%, on average. STRL shares have surged 199.6% in the past year.

The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates increases of 11.7% and 11.4%, respectively, from the prior-year reported levels.


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