Here's Why A. O. Smith (AOS) Shares Are Up 4.4% in 6 Months
A. O. Smith Corporation AOS appears in good shape, with its shares having rallied 4.4% in the past six months.
Image Source: Zacks Investment Research
What’s Aiding AOS?
A. O. Smith is gaining from robust demand for condensing boilers owing to its focus on innovation and decarbonization efforts. Pricing actions to offset high material and transportation costs are driving its North American boiler sales. Price increases have driven its North American water treatment business. Robust demand for water heating and water treating products is supporting sales from India within its Rest of the World segment.
The acquisitions made by AOS should continue to drive its top line. Its Atlantic Filter acquisition in June 2022 boosted its position in the water treatment industry and strengthened its customer base in Florida and the adjacent regions. The Canada-based Giant Factories buyout in October 2021 expanded the company’s commercial and water heater offerings. In third-quarter 2022, the Giant Factories acquisition added $25 million to the company’s North American sales.
The company’s measures to reward its shareholders through dividend payments and share buybacks are noteworthy. In the first nine months of 2022, A. O. Smith paid dividends worth $131.1 million (up 4.5% year over year) and repurchased 4.5 million shares for $282 million (up 33% year over year). The quarterly dividend rate also hiked 7% to 30 cents per share in October 2022.
Zacks Rank & Other Stocks to Consider
AOS currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Xylem Inc. XYL presently carries a Zacks Rank of 2. XYL’s earnings surprise in the last four quarters was 13.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, Xylem’s earnings estimates have increased 0.1% for 2022. The stock has gained 45.4% in the past six months.
MRC Global Inc. MRC presently has a Zacks Rank of 2. MRC’s earnings surprise in the last four quarters was 103%, on average.
In the past 60 days, MRC Global’s earnings estimates have increased 0.1% for 2022. The stock has gained 12.3% in the past six months.
IDEX Corporation IEX presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 0.1% for 2022. The stock has rallied 24.9% in the past six months.
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A. O. Smith Corporation (AOS) : Free Stock Analysis Report
IDEX Corporation (IEX) : Free Stock Analysis Report
MRC Global Inc. (MRC) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
