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Last updated 1 hour ago

AOS·A. O. Smith Corporation

$.
+. (+.%)
High
$58.03
Open
$57.66
Market Cap
7.89B
52W High
$81.86
Low
$57.33
P. Close
$57.28
P/E
14.96
52W Low
$54.16
Fwd P/E
13.71
Mean Target
-
Technical Score (1D)
23
SELL
News Sentiment
41
BEARISH
A. O. Smith Corporation (AOS) has been added to the Zacks Rank #5 (Strong Sell) list, indicating a high probability of underperformance. This downgrade follows a 6% downward revision of the consensus earnings estimate for the current year over the past 60 days. This suggests potential headwinds for the company's near-term financial performance. Investors should monitor future earnings estimate revisions and any commentary from management regarding operational challenges or market conditions that may be impacting profitability.
Earnings Summary
A. O. Smith Corporation is a global leader in water heating and water treatment solutions, serving residential and commercial markets across North America, China, Europe, and India. The company manufactures and distributes a wide array of products, including water heaters, boilers, and water treatment systems, under well-established brands such as A. O. Smith, State, and Lochinvar, utilizing a multi-channel distribution strategy. In its recent quarterly performance, A. O. Smith has shown a consistent upward trend in both EPS and revenue. EPS grew from $0.85 in Q4 2024 to $0.95 in Q1 2025 and further to $1.07 in Q2 2025, before a slight decrease to $0.94 in Q3 2025. Revenue followed a similar pattern, increasing from $912.4 million in Q4 2024 to $963.9 million in Q1 2025 and $1.01 billion in Q2 2025, with Q3 2025 revenue at $942.5 million. The company has demonstrated a strong beat pattern, exceeding EPS estimates in Q1 2025 and Q2 2025, and meeting estimates in Q3 2025, while narrowly missing in Q4 2025. Historically, A. O. Smith has exhibited a generally positive YoY growth trajectory, with consistent revenue increases and a tendency to meet or beat analyst expectations for earnings. Recent news indicates that DA Davidson has lowered its price target for A. O. Smith to $67 from $75 while maintaining a Neutral rating, suggesting a tempered view on valuation. Argus Research downgraded the stock to HOLD, citing a cautious near-term outlook despite modest annual financial growth and upcoming regulatory mandates expected to drive product upgrades. Investors will be watching for the company's ability to maintain its EPS and revenue growth momentum, particularly in light of the analyst target revisions and the anticipated impact of upcoming regulatory changes in the water technology sector.

EPS

EstBeatMiss
$0.82$0.89$0.97$1.04$1.12Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.94 - -
Q1'26$1.08$0.85-21.4%
Q4'25$0.96$0.90-6.0%
Q3'25$0.91$0.94+3.6%
Q2'25$0.99$1.07+7.9%
Q1'25$0.91$0.95+4.3%

Revenue

EstBeatMiss
$895M$933M$971M$1.0B$1.0BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$998M - -
Q1'26$1.0B$946M-8.2%
Q4'25$982M$913M-7.1%
Q3'25 - $943M -
Q2'25 - $1.0B -
Q1'25 - $964M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

AOS Stock Snapshot

AOS is currently trading at $58.03, giving A. O. Smith Corporation a market cap of 7.89B and a P/E ratio of 15.0. Today's range spans $57.33–$58.03, with shares opening at $57.66 and moving up $0.75 (1.3%) from the prior close. DailyIQ's technical score sits at 23/100 (SELL) with a news sentiment reading of 41/100.

Over the past year AOS has traded between $54.16 and $81.86 - the current price is +7.1% off the 52-week low and -29.1% from the high.

Small-cap Industrials names like AOS are high-beta on sentiment - and right now, sentiment is neutral (41/100). Technical score: 23/100 (SELL). Price: $58.03 (near 52-week lows). (P/E: 15.0) At 7.89B in market cap, the 52-week range of $54.16–$81.86 is where the risk gets real: stocks at this size can cover the full range on a single catalyst, in either direction. The current setup doesn't yet show the ingredients for a positive one.

Small-cap Industrials names with SELL technicals (23/100) and neutral sentiment (41/100) like AOS tend to experience sentiment-driven re-ratings more sharply in both directions. At $58.03 (near 52-week lows in $54.16–$81.86), the current setup suggests a stock that needs a material positive catalyst — not incremental improvement — to reverse the technical and sentiment readings that now define the 7.89B market cap trajectory.

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