A. O. Smith Corporation [NYSE:AOS] shares were trading 4.94% to $56.75 on Thursday. Comparativley, The S&P 500 is trading at 0.79%. For the year, the stock is trading 19.12% and the five-day change stands at 5.90%.
AOS’s next earning date is 10/29/2020. Currently, the company is booking earnings per share of 1.82 with the price-to-cash-flow at 32.05.
The company is also reporting 1.82 earnings per share.
The Price is right
Holding a Market Cap of $9.17 billion, A. O. Smith Corporation has seen a trading range over the last year of $33.81-$55.22.
For the last five days, AOS is up from its last closing price. The average shares trading hands each day is 1.04M.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for AOS. When we apply the Elder Force Index to A. O. Smith Corporation, we are seeing an Elder Force Indicator number of 5960529.36.
The recent performance of the stock is another area that can tell traders how to proceed. AOS is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 25.12.
In the last quarter, AOS made a profit of 247.5 million. A. O. Smith Corporation also saw quarter revenue growth year over year of -6.12%.
Looking at popular technical indicators, the company’s 5-day moving average is 54.63 compared to the 50-day moving average of 3.68%. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. AOS currently holds a 9-day RSI of 70.45%, while 100-day RSI stands at 55.76%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. AOS’s 9-day MACD is 0.75 and the company’s 100-day MACD stands at 5.52.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.97% by insiders and 104.52% by institutions. Regarding institutional holdings, Vanguard Group, Inc. (The) owns 11.39%, while the second top holder, Blackrock Inc., currently owns 8.82%.
Over the last six months, insiders have sold 4,800 with the most recent transaction from Goodwin Wallace E, SVP; Pres & GM, Lochinvar, LLC, with a sell at price 55.00 per share.
Overall, the recommended rating for AOS is Moderate Buy. Currently, the company has 12 analysts watching the stock, and the average quarterly earnings estimate is 0.5. Quarterly revenue estimates are averaging 704.35M with the high estimate reaching 732.6M and the low at 681.2M.
To review, the current 1-year target estimate is sitting at 52.38, while the current price 56.75. Based on this, we expect some pullback on the stock over time given our above analysis.