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Trade-Ideas LLC identified

A O Smith

(

AOS

) 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 $51.7 million.
  • AOS has traded 6,670 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 water heaters and boilers to the residential and commercial end markets primarily in the United States, Canada, China, Europe, India, and the Middle East. It operates in two segments, North America and Rest of World. The stock currently has a dividend yield of 0.9%. AOS has a PE ratio of 28. Currently there are 9 analysts that rate A O Smith a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Recommends

The average volume for A O Smith has been 839,400 shares per day over the past 30 days. A O Smith has a market cap of $6.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.60 and a short float of 4.3% with 5.41 days to cover. Shares are up 41.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates A O Smith as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. 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:

  • AOS's revenue growth has slightly outpaced the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 7.5%. 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 0.18 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 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 46.42% and other important driving factors, this stock has surged by 45.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AOS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SMITH (A O) CORP has improved earnings per share by 46.4% 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 $2.29 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($3.11 versus $2.29).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 45.5% when compared to the same quarter one year prior, rising from $50.60 million to $73.60 million.

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