Here's Why You Should Avoid Investing in A. O. Smith Stock Now
Werte in diesem Artikel
A. O. Smith Corporation AOS has failed to impress investors with its recent operational performance due to weakness in the Rest of the World segment, supply-chain challenges and forex woes.Based in Milwaukee, WI, A. O. Smith is engaged in manufacturing commercial and residential water heating equipment and water treatment products. The company specializes in offering innovative and energy-efficient solutions and products, which are developed and sold globally.In the past year, this Zacks Rank #4 (Sell) company’s shares have lost 24.8% compared with the industry’s 17.7% decline.Image Source: Zacks Investment ResearchLet’s discuss the factors, which are likely to continue taking a toll on this company.Business Weakness: As its fortunes are closely tied to the construction market, the ongoing challenges in the Chinese real estate market are a concern for A. O. Smith. Lower volumes of water heaters and water treatment products in the region are concerning for the Rest of the World segment. A decline in orders for residential and commercial water heater products in the North America segment is denting the company’s performance as well. In the fourth quarter, the North America segment’s sales declined 7% year over year as higher boiler and water treatment volumes were offset by lower volumes of residential and commercial water heaters.Supply-Chain Constraint: A. O. Smith’s operation can be impacted due to supply-chain disruptions. The company utilizes a variety of raw materials, including steel, copper, aluminum and various engineered electrical components in its businesses and has to depend on others for the uninterrupted supply of raw materials at reasonable rates. The persistence of supply-chain constraints for specifically engineered components may inflate costs and delay the delivery of products to its customers.Forex Woes: A. O. Smith has a significant presence in Asian countries like China and India. Since its products are priced in the local currencies of these countries, any increase in the value of the U.S. dollar relative to the local currencies would impact its revenues and profitability. For example, adverse foreign currency movements lowered the Rest of the World segment’s revenues by $13 million in 2024 and $44 million in 2023.Stocks to ConsiderSome better-ranked companies are discussed below.RBC Bearings Incorporated RBC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.RBC delivered a trailing four-quarter average earnings surprise of 4.9%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2025 earnings has increased 1.3%.Allegion plc ALLE presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 9.9%.In the past 60 days, the consensus estimate for ALLE’s 2025 earnings has increased 1.6%.The Middleby Corporation MIDD presently carries a Zacks Rank of 2. MIDD delivered a trailing four-quarter average earnings surprise of 1.9%.In the past 60 days, the consensus estimate for MIDD’s 2025 earnings has inched up 1.8%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report A. O. Smith Corporation (AOS): Free Stock Analysis Report RBC Bearings Incorporated (RBC): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Übrigens: NOW und andere US-Aktien sind bei finanzen.net ZERO sogar bis 23 Uhr handelbar (ohne Ordergebühren, zzgl. Spreads). Jetzt kostenlos Depot eröffnen und als Geschenk eine Gratisaktie erhalten.
Ausgewählte Hebelprodukte auf NOW
Mit Knock-outs können spekulative Anleger überproportional an Kursbewegungen partizipieren. Wählen Sie einfach den gewünschten Hebel und wir zeigen Ihnen passende Open-End Produkte auf NOW
Der Hebel muss zwischen 2 und 20 liegen
Name | Hebel | KO | Emittent |
---|
Name | Hebel | KO | Emittent |
---|
Quelle: Zacks
Nachrichten zu NOW Inc When Issued
Analysen zu NOW Inc When Issued
Datum | Rating | Analyst | |
---|---|---|---|
05.08.2019 | NOW Market Perform | Cowen and Company, LLC | |
03.08.2018 | NOW Buy | Stifel, Nicolaus & Co., Inc. | |
03.08.2018 | NOW Market Perform | Cowen and Company, LLC | |
03.05.2018 | NOW Market Perform | Cowen and Company, LLC | |
15.02.2018 | NOW Buy | Stifel, Nicolaus & Co., Inc. |
Datum | Rating | Analyst | |
---|---|---|---|
05.08.2019 | NOW Market Perform | Cowen and Company, LLC | |
03.08.2018 | NOW Market Perform | Cowen and Company, LLC | |
03.05.2018 | NOW Market Perform | Cowen and Company, LLC | |
15.02.2018 | NOW Market Perform | Cowen and Company, LLC | |
02.11.2017 | NOW Market Perform | Cowen and Company, LLC |
Datum | Rating | Analyst | |
---|---|---|---|
Keine Analysen im Zeitraum eines Jahres in dieser Kategorie verfügbar. Eventuell finden Sie Nachrichten die älter als ein Jahr sind im Archiv |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für NOW Inc When Issued nach folgenden Kriterien zu filtern.
Alle: Alle Empfehlungen