Are A.O. Smith Corp (AOS) stocks a prudent buy?

A share price of A.O. Smith Corp [AOS] is currently trading at $72.63, down -0.34%. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The AOS shares have gain 0.43% over the last week, with a monthly amount drifted -0.70%, and not seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

A.O. Smith Corp [NYSE: AOS] stock has seen the most recent analyst activity on October 23, 2024, when UBS upgraded its rating to a Neutral and also boosted its price target to $80 from $75. Previously, DA Davidson downgraded its rating to Neutral on October 23, 2024, and kept the price target unchanged to $80. On July 24, 2024, upgrade upgraded it’s rating to Buy and revised its price target to $98 on the stock. Seaport Research Partners started tracking the stock assigning a Neutral rating. Loop Capital downgraded its rating to a Hold and reduced its price target to $65 on January 17, 2023. UBS downgraded its rating to Sell for this stock on January 10, 2023, and downed its price target to $58. In a note dated July 14, 2022, Robert W. Baird downgraded an Neutral rating on this stock but restated the target price of $60.

A.O. Smith Corp experienced fluctuations in its stock price throughout the past year between $70.73 and $92.44. Currently, Wall Street analysts expect the stock to reach $85.8 within the next 12 months. A.O. Smith Corp [NYSE: AOS] shares were valued at $72.63 at the most recent close of the market. An investor can expect a potential return of 18.13% based on the average AOS price forecast.

Analyzing the AOS fundamentals

Trailing Twelve Months sales for A.O. Smith Corp [NYSE:AOS] were 3.89B which represents -3.72% decline. Gross Profit Margin for this corporation currently stands at 0.38% with Operating Profit Margin at 0.19%, Pretax Profit Margin comes in at 0.19%, and Net Profit Margin reading is 0.14%. To continue investigating profitability, this company’s Return on Assets is posted at 0.18, Equity is 0.3 and Total Capital is 0.32. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of0.06.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 72.16 points at the first support level, and at 71.70 for the second support level. However, for the 1st resistance point, the stock is sitting at 73.12, and for the 2nd resistance point, it is at 73.62.

Ratios To Look Out For

To put it in perspective, the Current Ratio for A.O. Smith Corp [NYSE:AOS] is 1.67. Also, the Quick Ratio is 1.02, while the Cash Ratio stands at 0.26. Considering the valuation of this stock, the price to sales ratio is 2.72, the price to book ratio is 5.41 and price to earnings (TTM) ratio is 19.16.

Transactions by insiders

Recent insider trading involved Carver Samuel M., SVP – Global Operations, that happened on Aug 07 ’24 when 14705.0 shares were sold. Officer, SAMUEL M CARVER completed a deal on Aug 07 ’24 to buy 14705.0 shares. Meanwhile, Director BROWN RONALD D sold 3631.0 shares on Jul 30 ’24.

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