
AOS Stock Forecast & Price Target
AOS Analyst Ratings
Bulls say
A.O. Smith has demonstrated a solid financial performance with third-quarter sales of $742.8 million, reflecting a 5.6% year-over-year increase, driven by effective pricing strategies and increased commercial water heater volumes. The company has also achieved a significant 110 basis points of margin expansion in its North America segment, highlighting strong execution in commercial heating and prioritized sales channels such as water treatment. Further enhancing its positive outlook, A.O. Smith's return on invested capital (ROIC) has markedly improved over the past decade, reaching 21.7% in 2024, well above the estimated long-term cost of capital, which positions the company favorably for sustainable growth and profitability.
Bears say
A.O. Smith's financial outlook appears negative primarily due to a substantial decline in volumes in the Chinese market, which led to an 11% drop in third-party sales in local currency and a broader 1.5% year-on-year decrease in overall sales. Additionally, the company faces challenges in North America, indicated by low residential water heater demand attributed to reduced housing completions and weakened consumer confidence, which could result in flat to slight declines in unit volumes for 2025. The persistent volatility in input costs and potential disruptions from trade issues with China further exacerbate the company's financial difficulties and heighten uncertainty regarding future performance.
This aggregate rating is based on analysts' research of A. O. Smith and is not a guaranteed prediction by Public.com or investment advice.
AOS Analyst Forecast & Price Prediction
Start investing in AOS
Order type
Buy in
Order amount
Est. shares
0 shares