Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified A.O. Smith Corporation 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 $31.0 million.
- AOS has traded 427,548 shares today.
- AOS is trading at a new lifetime high.
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More details on AOS:
A. O. Smith Corporation engages in the manufacture and sale of water heaters and boilers to the residential and commercial markets primarily in the United States, Canada, Europe, India, and China. The company operates in two segments, North America and Rest of World. The stock currently has a dividend yield of 1.1%. AOS has a PE ratio of 26.2. Currently there are 2 analysts that rate A.O. Smith Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for A.O. Smith Corporation has been 592,500 shares per day over the past 30 days. A.O. Smith has a market cap of $3.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.10 and a short float of 2.6% with 3.24 days to cover. Shares are up 42.6% year to date as of the close of trading on Friday.
rates A.O. Smith Corporation as a
. 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, growth in earnings per share 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:
- AOS's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AOS's debt-to-equity ratio is very low at 0.17 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 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 56.94% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 20.0% 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 $1.75 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $1.75).
- 38.59% 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 7.66% is above that of the industry average.
- You can view the full A.O. Smith Corporation Ratings Report.