A. O. Smith: It’s Worth Looking Past The Bad News

Summary:

  • AOS’s quarterly results were not good and both revenue and EPS were worse compared to Q3-2023.
  • However, AOS’s investment thesis remains fundamentally intact, given its solid business model, strong financials and healthy balance sheet.
  • The company has a lot to offer for dividend growth investors and scores good to excellent on the Seeking Alpha Quant dividend metrics.
  • For those who are willing to look past the bad news and want to go for the long-term, AOS is a “BUY” at current prices.

wave on water

Henrik Sorensen

Introduction

I don’t hide my love for boring stocks.

And I mean boring as a positive. Companies that achieve sustainable growth in the long-term and can convert this into healthy bottom-line profit and free cash flow. One of these


Analyst’s Disclosure: I/we have a beneficial long position in the shares of AOS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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