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Here's Why A.O. Smith (AOS) is a Strong Growth Stock

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

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A.O. Smith (AOS)

Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.

AOS is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of A and VGM Score of B. Earnings are expected to grow 6.8% year-over-year for the current fiscal year, with sales growth of 3.4%.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0 to $4.07 per share. AOS boasts an average earnings surprise of 6.7%.

A.O. Smith is also cash rich. The company has generated cash flow growth of 4.6%, and is expected to report cash flow expansion of 15.5% in 2024.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, AOS should be on investors' short lists.

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A. O. Smith Corporation (AOS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research