
AOS Stock Forecast & Price Target
AOS Analyst Ratings
Bulls say
A.O. Smith has demonstrated robust financial growth, with a notable 11% increase in sales in India and an expectation of mid-teens growth in legacy India revenue, indicating strong international market performance. The company has significantly improved its return on invested capital (ROIC) from 3.7% in 2010 to 21.7% in 2024, consistently exceeding the long-term cost of capital, which bodes well for shareholder value. Additionally, A.O. Smith's historical performance reflects a track record of outperforming the S&P 500, further enhancing its positive outlook in the market.
Bears say
A.O. Smith experienced a significant decline in sales, with revenues of $689.8 million in 4Q23 reflecting a 6.5% year-over-year decrease, primarily driven by reduced water heater volumes, which constitute the bulk of its North American sales. Additionally, the international segment, particularly in China, reported a 9.1% decline in sales due to weak consumer demand, which raises concerns about growth potential in important markets. The company's lowered earnings projections for 2025 and 2026 highlight the expectation of continued softness in demand, further contributing to a negative outlook.
This aggregate rating is based on analysts' research of A. O. Smith and is not a guaranteed prediction by Public.com or investment advice.
AOS Analyst Forecast & Price Prediction
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