New Lifetime High Reached: A.O. Smith (AOS)
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified A.O. Smith as such a stock due to the following factors:
- AOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.2 million.
- AOS has traded 8,923 shares today.
- AOS is trading at a new lifetime high.
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More details on AOS:
A. O. Smith Corporation manufactures and markets a range of water heaters, boilers, and other products for residential and commercial end markets in the United States, China, Canada, Europe, and India. The stock currently has a dividend yield of 1.1%. AOS has a PE ratio of 27. Currently there are 10 analysts that rate A.O. Smith a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for A.O. Smith has been 741,400 shares per day over the past 30 days. A.O. Smith has a market cap of $7.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.57 and a short float of 4.4% with 4.76 days to cover. Shares are up 14.2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates A.O. Smith as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- SMITH (A O) CORP has improved earnings per share by 27.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SMITH (A O) CORP increased its bottom line by earning $3.16 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($3.50 versus $3.16).
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.9%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AOS's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AOS has a quick ratio of 1.91, which demonstrates the ability of the company to cover short-term liquidity needs.
- 43.79% is the gross profit margin for SMITH (A O) CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.54% is above that of the industry average.
- You can view the full A.O. Smith Ratings Report.
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