Stock Price & Analysis

Sell AOS stock as it faces weak demand in key markets and has a cautious "Hold" analyst consensus.

AOS stock is predicted to reach $74 by the end of 2025, supported by the mean analyst price target of $74.56. The stock faces challenges from weak water heater demand in North America and China, leading to a 2025 profit forecast below estimates.

The S1 support level for AOS Stock is $65.42 ,The R1 resistant level for AOS Stock is $69.95.

As of the end of day on 2025-03-17, the price of AOS Stock was $66.41.

The target price for AOS Stock according to analyst rating is 78.17, with the highest price target at 88.00 and the lowest at 73.00. Analysts have a Moderate Buy rating on AOS Stock overall.

The market cap of AOS is $7.9B.

A. O. Smith (AOS) appears to be overvalued based on several key factors:

1. High Valuation Multiples: AOS has a PE ratio of 23.26 and EV/EBITDA of 14.14, both above industry averages, indicating a premium valuation.

2. Disappointing Earnings: The company missed Q4 revenue and EPS estimates, with revenue dropping 8% year-over-year, driven by weak demand in North America and China.

3. Weak Guidance: AOS forecasted 2025 EPS below analyst expectations, reflecting ongoing challenges in its core markets.

4. Mixed Analyst Sentiment: While some analysts maintain a "Buy" rating, others have downgraded targets, with a mean price target of $74, suggesting limited upside.

In conclusion, AOS's high valuation, poor earnings performance, and uncertain outlook indicate it may be overvalued. Investors should consider waiting for a price correction or clearer recovery signs before investing.

A. O. Smith Corporation applies technologies and solutions to products manufactured and marketed worldwide. The Company operates through two segments: North America and Rest of World. Both the segments manufacture and market a comprehensive line of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Its Rest of World segment is primarily comprised of China, Europe, and India. The North America segment serves residential and commercial end markets with a range of products, including water heaters, boilers, water treatment products, and other. The Company also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. Its Lochinvar brand is a residential and commercial boiler brand in the United States. Its water softener branded products and problem well water solutions include the Hague, Impact Water, Water-Right, Master Water, Atlantic Filter and Water Tec brands.

Price Prediction for AOS Stock by 2030

A.O. Smith Corporation (AOS) is expected to reach $103 by 2030, driven by recovery in water heater demand and low valuation. Analysts predict moderate growth despite current challenges in North America and China.

AOS has a total of 12000 employees.