
AOS Stock Forecast & Price Target
AOS Analyst Ratings
Bulls say
A.O. Smith is well-positioned for substantial growth, as evidenced by an 11% increase in sales in India and anticipated mid-teens revenue growth from its legacy operations in the country. The company has demonstrated remarkable improvement in return on invested capital (ROIC), escalating from 3.7% in 2010 to 21.7% in 2024, while consistently outperforming its long-term cost of capital of 9%-10%. Furthermore, A.O. Smith's historical share performance has consistently surpassed that of the S&P 500, showcasing its strong market presence and ability to generate value for shareholders.
Bears say
A.O. Smith reported a 6.5% decline in sales year-over-year for 4Q23, attributed largely to lower water heater volumes, which represent the majority of its North American sales. Additionally, international revenue decreased by 9.1%, primarily due to weak consumer demand in China, further signaling a downturn in sales performance. Despite historical low valuations potentially offering some downside protection, the company's underwhelming 4Q results and conservative guidance raise concerns about future earnings growth, leading to a cautious 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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