Could this be the case of a blown-up long-term opportunity? A.O. Smith Corp (AOS)

At the time of writing, A.O. Smith Corp [AOS] stock is trading at $71.25, up 3.82%. It is a good measure of the stock’s recent performance to check whether the stock’s short-term value is rising or falling. The AOS shares have gain 3.41% over the last week, with a monthly amount drifted -2.24%, 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 January 14, 2025, when Oppenheimer upgraded its rating to a Outperform but kept the price target unchanged to $88 for it. Previously, UBS upgraded its rating to Neutral on October 23, 2024, and elevated its price target to $80. On October 23, 2024, downgrade downgraded it’s rating to Neutral but maintained its price target of $80 on the stock. Stifel upgraded its rating to a Buy and increased its price target to $98 on July 24, 2024. Seaport Research Partners initiated its recommendation with a Neutral. Loop Capital downgraded its rating to Hold for this stock on January 17, 2023, and downed its price target to $65. In a note dated January 10, 2023, UBS downgraded an Sell rating on this stock and revised its target price from $65 to $58.

For the past year, the stock price of A.O. Smith Corp fluctuated between $67.17 and $92.44. Currently, Wall Street analysts expect the stock to reach $86.17 within the next 12 months. A.O. Smith Corp [NYSE: AOS] shares were valued at $71.25 at the most recent close of the market. An investor can expect a potential return of 20.94% based on the average AOS price forecast.

Analyzing the AOS fundamentals

According to A.O. Smith Corp [NYSE:AOS], the company’s sales were 3.89B for trailing twelve months, which represents an -3.72% plunge. 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 of0.07.

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 70.00 points at the first support level, and at 68.74 for the second support level. However, for the 1st resistance point, the stock is sitting at 71.93, and for the 2nd resistance point, it is at 72.60.

Ratios To Look Out For

It is important to note that A.O. Smith Corp [NYSE:AOS] has a current ratio of 1.67. Further, the Quick Ratio stands at 1.02, while the Cash Ratio is 0.26. Considering the valuation of this stock, the price to sales ratio is 2.67, the price to book ratio is 5.31 and price to earnings (TTM) ratio is 18.79.

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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