A. O. Smith Corporation In Hot Water

Summary:

  • A. O. Smith Corp deserves its sell assessment for retail value investors after a weak Q3 and lower guidance, declining EPS, revenue, and unattractive dividend yield.
  • The stock’s momentum is weak. The share price slid as of this writing about 13% over 12 months and -16% YTD.
  • Potential headwinds from the new federal government raise concerns about headwinds the might stymie future growth.
  • Despite Smith having a strong brand in the water heater and purification industry, we foresee little in the future to drive up the share price soon.

Residential Water Heater

JulNichols

Stock Cools On This Water Heater

The tide has turned against A. O. Smith Corporation (AOS), making it a risky sell investment opportunity for retail value investors. We believe impatience in the financial community with AOS makes


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.


Leave a Reply

Your email address will not be published. Required fields are marked *