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A.O. Smith (AOS - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis maker of water heaters and boilers is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -10.3%.

Revenues are expected to be $986.45 million, down 2.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.21% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for A.O. Smith?For A.O. Smith, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.08%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that A.O. Smith will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that A.O. Smith would post earnings of $0.94 per share when it actually produced earnings of $0.85, delivering a surprise of -9.57%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

A.O. Smith doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- A. O. Smith Corporation (NYSE: AOS) will release its second quarter 2026 financial results before the market opens on Thursday, July 30, and has scheduled an investor conference call to follow at 10:00 a.m. (Eastern Daylight Time). 

The call can be heard live on the company's website, www.aosmith.com. An audio replay of the call will be available on the company's website after the live event. To access the archived audio replay, go to the "Investors" page and select the "Second Quarter Conference Call" link.

About A. O. Smith

A. O. Smith Corporation, with headquarters in Milwaukee, Wisconsin, is a global leader applying innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. Listed on the New York Stock Exchange (NYSE: AOS), the company is one of the world's leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment and water management products. For more information, visit www.aosmith.com.

SOURCE: A. O. Smith Corporation

Also from this source

On June 17, 2026, A.O. Smith Corp AOS shares fell by 3.9%, bringing the current price to $57.88. The stock has traded within a 52-week range of $54.16 to $81.87, reflecting volatility in the market. The recent decline adds to a year-to-date loss of 12.5%.

GF Value™ verdict: Current price at $57.88 is 24.6% below GF Value™ of $76.73.GF Score™ of 86/100 indicates a strong overall performance.Most notable signal: Financial Strength rated at 8/10, suggesting robust financial stability. Is AOS Overvalued or Undervalued? A.O. Smith Corp is currently priced at $57.88, which is significantly lower than the GF Value™ estimate of $76.73, marking the stock as 24.6% undervalued. This discrepancy indicates a potential opportunity for value-oriented investors, as the current pricing offers a margin of safety. The GF Valuation label characterizes the stock as modestly undervalued, suggesting that the price may not fully reflect the company's intrinsic value based on its historical performance and future expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation presents an opportunity, it is essential to consider market risks and economic conditions that could impact stock performance moving forward.

How Does AOS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.4x 20.7x Forward P/E 15.4x N/A A.O. Smith Corp's current P/E ratio of 15.4x is significantly lower than its 5-year median P/E of 20.7x, indicating that the stock is trading below its historical valuation. This analysis agrees with the GF Value™ verdict that A.O. Smith is undervalued, supporting the notion that the stock may provide a good entry point based on historical earnings multiples.

What Does AOS's GF Score™ Tell Us? Metric Rating GF Score™ 86/100 Financial Strength 8/10 Profitability 9/10 Growth 7/10 Valuation 8/10 Momentum 4/10 The GF Score™ of 86/100 reveals a strong overall performance, particularly in Profitability, which is rated at a high 9/10. This suggests that A.O. Smith Corp maintains a healthy profit margin and efficient operations. The Financial Strength score of 8/10 further underscores the company's solid balance sheet and operational stability. However, the Momentum rank of 4/10 indicates that the stock has faced recent challenges in maintaining upward price trends, which may necessitate careful consideration by potential investors.

What Are Insiders Doing with AOS Stock? According to the latest data, there have been no insider transactions in the last three months for A.O. Smith Corp. This lack of insider activity may suggest that company executives and board members currently do not see immediate opportunities to buy or sell shares, which could indicate a stable outlook from their perspective, but it also leaves open the question of confidence in the stock's future performance.

What This Means for Investors Based on the GF Value™ assessment, A.O. Smith Corp is currently undervalued at a price of $57.88 compared to a GF Value™ of $76.73. This valuation presents a potential opportunity for investors, although it is essential to remain aware of market volatility and other external factors that might influence future stock performance.

For the complete analysis, visit the A.O. Smith Corp AOS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is AOS's GF Score™?

A.O. Smith Corp has a GF Score™ of 86/100, indicating a strong overall performance and potential for higher long-term returns.

Is AOS overvalued or undervalued?

A.O. Smith Corp is currently undervalued, with a GF Value™ of $76.73 compared to the current price of $57.88.

What is AOS's P/E ratio?

A.O. Smith Corp has a current P/E (TTM) of 15.4x, which is significantly below its 5-year median P/E of 20.7x, indicating a more attractive valuation compared to historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

MILWAUKEE, June 22, 2026 /PRNewswire/ -- A. O. Smith Corporation (NYSE: AOS), a global leader in water technology, announced today that Executive Chairman Kevin Wheeler will retire effective July 1.

Cwm LLC boosted its stake in A. O. Smith Corporation (NYSE: AOS) by 116.3% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 34,146 shares of the industrial products company's stock after acquiring an additional 18,362 shares during the period. Cwm LLC's

First Quarter 2026 Highlights
(Comparisons are year-over-year ("YoY"), unless otherwise noted)

Sales of $946 million; net earnings of $118 million and diluted earnings per share (EPS) of $0.85 North America segment sales of $753.4 million increased 1% with the addition of Leonard Valve and pricing benefits offsetting softer water heater industry volumes and weather-related production and shipping constraints Rest of World segment sales of $200.7 million decreased 11% due to continued challenges in the consumer appliance market in China Net earnings decreased primarily as a result of lower volumes and transaction-related expenses recognized in the quarter for the Leonard Valve acquisition Strong growth in operating cash flow and free cash flow to $129 million and $119 million, respectively Primarily due to continued challenging conditions in China, 2026 full year EPS guidance lowered to: Diluted EPS of between $3.60 and $3.90 Adjusted EPS of between $3.70 and $4.00 , /PRNewswire/ -- Global water technology company A. O. Smith Corporation ("the Company") (NYSE: AOS) today announced its first quarter 2026 results.

Key Financial Metrics 

First Quarter
(in millions, except per share amounts)

Q1 2026

Q1 2025

% Change YoY

Net sales

$ 945.6

$ 963.9

-2 %

Net earnings

$ 118.0

$ 136.6

-14 %

Diluted earnings per share

$   0.85

$   0.95

-11 %

Chief Executive Officer Steve Shafer commented, "Our team executed with focus and agility in the first quarter, continuing to support our customers well in the face of a continued soft macro environment. As we anticipated, softer demand in China impacted results. In North America, results were impacted by residential water heater industry demand that was modestly below our expectations, compounded by temporary weather-related disruptions at our Ashland City, Tennessee facility. Separately, in April, we took another step in our business simplification and margin enhancement efforts within our North America water treatment business by announcing a targeted restructuring plan that will be recognized in the second quarter. We believe these actions are an important step in advancing a stronger business model to achieve a higher level of profitable growth."

Segment-level Performance

North America

First quarter sales of $753.4 million increased 1% relative to a difficult 2025 comparison as the benefits of carryover pricing actions and the $16 million sales contribution from the newly acquired Leonard Valve business were largely offset by lower residential water heater volumes. The first quarter of 2026 was negatively impacted by weather-related production and shipping constraints, particularly as a direct result of storm damage at the Company's Ashland City, Tennessee plant. The first quarter of 2025 benefited from incremental volume from the pull forward of water heater and boiler sales ahead of tariff and other cost-related price increases.

Segment earnings were $175.4 million and segment margin was 23.3% in first quarter of 2026 compared to first quarter of 2025 segment earnings of $185.2 million and segment margin of 24.7%. The year-over-year decrease in segment earnings and segment margin was primarily due to lower residential water heater volumes which more than offset the earnings contribution from Leonard Valve. The first quarter of 2025 benefited from a stronger mix toward higher efficiency products as certain customers bought ahead of an announced price increase.

Rest of World

Rest of World sales of $200.7 million decreased 11% compared to the prior year period and included a favorable currency translation impact of $8 million primarily related to sales in China. China sales decreased 17% in local currency due to continued weak consumer demand.

Segment earnings were $12.4 million and segment margin was 6.2% in the first quarter of 2026, compared to segment earnings of $19.7 million and segment margin of 8.7% in the same period of 2025. The lower segment earnings and segment margin compared to the prior year were primarily due to lower sales volumes that were partially offset by continued cost management in China.

Balance Sheet, Liquidity and Capital Allocation

As of March 31, 2026, cash and marketable securities balances totaled $203.9 million and debt totaled $615.8 million, resulting in a leverage ratio of 24.7% as measured by total debt-to-total capitalization. The increased leverage ratio compared to 2025 was due to cash borrowed under a new term loan used to acquire Leonard Valve in January 2026.

Cash provided by operations was $129.4 million and free cash flow was $118.9 million in the first three months of 2026, both higher than the same period in 2025, primarily driven by diligent working capital management and the timing of customer payments that more than offset lower earnings.

As part of its commitment to return capital to shareholders, the Company repurchased 0.7 million shares at a cost of $51.3 million in the first three months of 2026. As of March 31, 2026, authority remained to repurchase approximately 5.1 million additional shares. The Company projects that it will spend $200 million to repurchase shares in 2026.

On April 13, 2026, the Company's board of directors approved a $0.36 per share dividend for shareholders of record on April 30, payable on May 15. For the full release, click here.

Outlook

2026 Outlook
(in millions, except per share amounts)

2025

2026 Outlook

Actual

Low End

High End

Net sales

$  3,830

$    3,900

$    4,000

Diluted earnings per share

$    3.85

$      3.60

$      3.90

Adjusted earnings per share

$    3.85

    $    3.701

   $    4.001

1 

Excludes announced North America water treatment pre-tax restructuring and impairment expenses of approximately $20 million to be recognized in the second quarter. See accompanying GAAP to Non-GAAP reconciliations

The Company revised its full-year 2026 sales growth outlook to a range of 2% to 4%, lowering the high end compared to the previous range of 2% to 5%. The Company also lowered its full-year 2026 adjusted EPS outlook to be between $3.70 and $4.00, down from $3.85 to $4.15.

Shafer concluded, "Primarily based on our latest view of our China business and partially due to increased uncertainty around regulatory changes scheduled to take effect later this year in North America, we have updated our full-year expectations. In China, we expect market conditions to remain challenging through the year and have identified several actions to improve performance. These actions are pending the conclusion of our assessment of the business. In North America, we remain confident in our competitive positioning and the underlying strength of the business despite a slower-than-expected start to the year driven by softer macro conditions." 

"We believe our strong balance sheet and free cash flow give us the flexibility to support organic growth, dividends and share repurchases while continuing to pursue strategic acquisitions to support our focus on portfolio management."

The Company's guidance excludes the potential impacts from future acquisitions, any potential outcomes of the assessment of its China business and changes to tariffs after the date of this release.

A. O. Smith will host a webcasted conference call at 10:00 a.m. (Eastern Daylight Time) today. The call can be heard live on the Company's website click here. An audio replay of the call will be available on the Company's website after the live event. To access the archived audio replay, go to the "Investors" page and select the First Quarter 2026 Earnings Call link.

To provide improved transparency into the operating results of its business, the Company is providing non-GAAP measures. Free cash flow is defined as cash provided by operations less capital expenditures. Adjusted EPS excludes the impact of restructuring and impairment charges. Reconciliations from GAAP measures to non-GAAP measures are provided in the financial information included in this news release.

Forward-looking Statements

This release contains statements that the Company believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "forecast," "continue," "guidance," "outlook", "confident" or words of similar meaning. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Important factors that could cause actual results to differ materially from these expectations include, among other things, the following: further weakening in North American residential or commercial construction or instability in the Company's replacement markets; failure to realize the expected benefits of acquisitions or expected synergies; difficulties in predicting results of operations of an acquired business; negative impact to the Company's businesses from international tariffs, including any new or increased tariffs that could also trigger retaliatory responses from other countries, as well as trade disputes and geopolitical differences, including the conflicts in Ukraine and the Middle East; further softening in U.S. residential and commercial water heater demand; negative impacts to the Company, particularly the demand for its products, resulting from global inflationary pressures or a potential recession in one or more of the markets in which the Company participates; the Company's ability to continue to obtain commodities, components, parts and accessories on a timely basis through its supply chain and at expected costs, including the recent volatility in fuel and other material prices; inability of the Company to implement or maintain pricing actions; inconsistent recovery of the Chinese economy or a further decline in the growth rate of consumer spending or housing sales in China; the availability, timing or effects of China stimulus programs; uncertain outcomes and costs and other potential impacts of the Company's assessment relating to the Company's China business; the failure to realize the expected benefits of restructuring actions; further weakening in the high-efficiency gas boiler segment in the U.S.; substantial defaults in payment by, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer; foreign currency fluctuations; failure to realize the expected benefits, timing and extent of regulatory changes; competitive pressures on the Company's businesses, including new technologies and new competitors; the impact of potential information technology or data security breaches; negative impact of changes in government regulations or regulatory requirements; the inability to respond to secular trends toward decarbonization and energy efficiency; and adverse developments in general economic, political and business conditions in key regions of the world. Additional factors are discussed in the Company's filings with Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025, quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements included in this news release are made only as of the date of this release, and the Company is under no obligation to update these statements to reflect subsequent events or circumstances. All subsequent written and oral forward-looking statements attributed to the Company, or persons acting on its behalf, are qualified entirely by these cautionary statements.

About A. O. Smith
A. O. Smith Corporation, with headquarters in Milwaukee, Wisconsin, is a global leader applying innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. Listed on the New York Stock Exchange (NYSE: AOS), the Company is one of the world's leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment products. For more information, visit www.aosmith.com.

A. O. SMITH CORPORATION

Condensed Consolidated Statement of Earnings

(dollars in millions, except share data)

(unaudited)

Three Months Ended
March 31,

2026

2025

Net sales

$

945.6

$

963.9

Cost of products sold

579.9

588.5

Gross profit

365.7

375.4

Selling, general and administrative expenses

203.9

192.6

Interest expense

7.1

2.9

Other income, net

—

(1.2)

Earnings before provision for income taxes

154.7

181.1

Provision for income taxes

36.7

44.5

Net earnings

$

118.0

$

136.6

Diluted earnings per share of common stock

$

0.85

$

0.95

Average common shares outstanding (000's omitted)

139,167

144,408

A. O. SMITH CORPORATION

Condensed Consolidated Balance Sheet

(dollars in millions)

(Unaudited)
March 31,
2026

December 31,
2025

ASSETS:

Cash and cash equivalents

$

185.2

$

174.5

Marketable securities

18.7

18.7

Receivables

634.1

582.3

Inventories

488.5

479.3

Other current assets

41.9

36.7

Total Current Assets

1,368.4

1,291.5

Net property, plant and equipment

632.2

635.1

Goodwill and other intangibles

1,518.6

1,072.9

Operating lease assets

51.8

46.3

Other assets

79.3

97.0

Total Assets

$

3,650.3

$

3,142.8

LIABILITIES AND STOCKHOLDERS' EQUITY:

Trade payables

$

543.0

$

504.1

Accrued payroll and benefits

60.7

93.6

Accrued liabilities

159.4

147.5

Product warranties

73.4

75.0

Debt due within one year

41.6

42.3

Total Current Liabilities

878.1

862.5

Long-term debt

574.2

112.7

Pension liabilities

7.4

7.4

Operating lease liabilities

40.7

37.1

Other liabilities

272.0

265.1

Stockholders' equity

1,877.9

1,858.0

Total Liabilities and Stockholders' Equity

$

3,650.3

$

3,142.8

A. O. SMITH CORPORATION

Condensed Consolidated Statement of Cash Flows

(dollars in millions)

(unaudited)

Three Months Ended
March 31,

2026

2025

Operating Activities

Net earnings

$

118.0

$

136.6

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Depreciation & amortization

23.9

20.7

Share based compensation expense

6.6

6.1

Deferred income taxes

18.3

(5.0)

Net changes in operating assets and liabilities:

Current assets and liabilities

(43.2)

(125.3)

Noncurrent assets and liabilities

5.8

5.6

Cash Provided by Operating Activities

129.4

38.7

Investing Activities

Capital expenditures

(10.5)

(21.3)

Acquisitions

(470.0)

—

Investment in marketable securities

—

(22.6)

Net proceeds from sale of marketable securities

—

33.1

Cash Used in Investing Activities

(480.5)

(10.8)

Financing Activities

Proceeds from debt

564.4

240.5

Repayments of debt

(101.1)

(164.0)

Common stock repurchases

(51.3)

(120.6)

Net payments from stock option activity

(0.5)

(1.8)

Dividends paid

(50.2)

(49.2)

Cash Provided by (Used in) Financing Activities

361.3

(95.1)

Effect of exchange rate changes on cash and cash equivalents

0.5

0.6

Net increase (decrease) in cash and cash equivalents

10.7

(66.6)

Cash and cash equivalents - beginning of period

174.5

239.6

Cash and Cash Equivalents - End of Period

$

185.2

$

173.0

A. O. SMITH CORPORATION

Business Segments

(dollars in millions)

(unaudited)

Three Months Ended

March 31,

2026

2025

Net sales

North America

$

753.4

$

748.7

Rest of World

200.7

226.7

Inter-segment sales

(8.5)

(11.5)

$

945.6

$

963.9

Earnings

North America

$

175.4

$

185.2

Rest of World

12.4

19.7

Inter-segment earnings elimination

—

—

187.8

204.9

Corporate expense

(26.0)

(20.9)

Interest expense

(7.1)

(2.9)

Earnings before income taxes

154.7

181.1

Provision for incomes taxes

36.7

44.5

Net earnings

$

118.0

$

136.6

A. O. SMITH CORPORATION

Free Cash Flow

(dollars in millions)

(unaudited)

The following is a reconciliation of reported cash flow from operating activities to free cash flow (non-GAAP):

Three Months Ended

March 31,

2026

2025

Cash provided by operating activities (GAAP)

$

129.4

$

38.7

Less: Capital expenditures

(10.5)

(21.3)

Free cash flow (non-GAAP)

$

118.9

$

17.4

A. O. SMITH CORPORATION

2026 Adjusted EPS Guidance and 2025 EPS

(unaudited)

The following is a reconciliation of diluted EPS to adjusted EPS (non-GAAP) (all items are net of tax):

2026

Guidance

2025

Diluted EPS (GAAP)

$

3.60-3.90

$

3.85

Restructuring and impairment expenses

0.10

(1)

—

Adjusted EPS (non-GAAP)

$

3.70-4.00

$

3.85

(1)

Includes announced North America water treatment pre-tax restructuring and impairment expenses of approximately $20 million to be recognized in the second quarter

SOURCE A. O. Smith Corporation

A.O. Smith (AOS) came out with quarterly earnings of $0.85 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.95 per share a year ago.

A. O. Smith Corporation (AOS) Q1 2026 Earnings Call Transcript

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MILWAUKEE, May 19, 2026 /PRNewswire/ -- A. O. Smith Corporation (NYSE: AOS), a leader in water heating and water treatment, announced today that Carrie L.

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On June 09, 2026, A.O. Smith Corp AOS shares rose 3.3% today, currently trading at $59.23. This move comes amidst a 52-week range of $54.16 to $81.87, showcasing both volatility and potential for recovery in the stock price.

GF Value™ verdict: Current price is $59.23, which is 22.7% below the GF Value™ estimate of $76.66.GF Score™: AOS has a GF Score™ of 84/100, indicating a strong investment quality.Most notable signal: A.O. Smith Corp has seen no insider transactions in the last 3 months. Is AOS Overvalued or Undervalued? With a current price of $59.23 and a GF Value™ of $76.66, A.O. Smith Corp appears to be undervalued by 22.7%. This discrepancy indicates a potential margin of safety for investors, as the market price is significantly lower than the intrinsic value suggested by GF Value™. The GF Valuation label of "Modestly Undervalued" further supports this view, suggesting that there may be an opportunity for price appreciation if the market corrects itself.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should consider this valuation alongside other financial metrics to make a well-informed decision.

How Does AOS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.8x 20.9x Forward P/E 15.7x N/A The current P/E (TTM) of 15.8x is notably below the 5-year median P/E of 20.9x, indicating that A.O. Smith Corp is trading at a discount relative to its historical valuation levels. This analysis aligns with the GF Value™ verdict, reinforcing the perception that AOS is undervalued at this time.

What Does AOS's GF Score™ Tell Us? Metric Rating GF Score™ 84 Financial Strength 8/10 Profitability 9/10 Growth 6/10 Valuation 8/10 Momentum 4/10 A.O. Smith Corp's GF Score™ of 84/100 reflects a strong overall financial standing, particularly in profitability (9/10) and financial strength (8/10). The growth rank of 6/10 indicates moderate growth potential, while the valuation rank of 8/10 suggests that the stock is relatively undervalued. However, the momentum rank of 4/10 points to some weakness in recent price performance, suggesting that investors should remain cautious.

What Are Insiders Doing with AOS Stock? Currently, there have been no insider transactions in the last 3 months for A.O. Smith Corp. This absence of insider activity may suggest a neutral stance from company executives regarding the stock's near-term prospects, which can be interpreted as a lack of urgency to either buy or sell shares.

What This Means for Investors Based on the GF Value™ assessment, A.O. Smith Corp is currently undervalued, presenting a potential opportunity for investors looking for stocks trading below their intrinsic value. However, it is essential to consider the various financial metrics and market conditions before making any investment decisions.

For the complete analysis, visit the A.O. Smith Corp AOS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is AOS's GF Score™?

A.O. Smith Corp has a GF Score™ of 84/100, indicating a strong investment quality based on key financial metrics.

Is AOS overvalued or undervalued?

A.O. Smith Corp is considered undervalued, with a current price that is 22.7% below its GF Value™ of $76.66.

What is AOS's P/E ratio?

The P/E (TTM) ratio for A.O. Smith Corp is 15.8x, which is significantly lower than its 5-year median of 20.9x, suggesting it is trading at a discount to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].