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AOS · NYSE · STOCK

A. O. Smith (AOS) Stock Analysis

Industrials Updated August 24, 2026
$62.73
52W $54.16 – $81.87
67/100
$8.74B
17.6
1.16
AI Committee Verdict
Buy
67/100
Conviction: Contested · 67% agreement · 6 analysts
+3.1%
-0.1%
30.60:1
Contested

Is AOS Bullish or Bearish?

Bullish. Innellis AI committee rates A. O. Smith (AOS) Buy with a composite score of 67/100 , based on 6 analysts with 67% agreement. Last updated August 24, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +8.40 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -11.60 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is split. Analysts see this stock differently enough that the current rating reflects genuine uncertainty, not a weak signal.

Bull & Bear Case

Bull Case
  • ROE of 27.0% shows genuine earnings power backing the valuation — Value
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Low leverage (debt-to-equity 0.08) -- balance sheet can absorb a shock — Risk
  • News sentiment is positive (+1.00 across 1 articles, 14d) — News
Bear Case
  • Price-to-book of 5.0x prices in significant intangible value — Value
  • MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 24, 2026
Overall Committee Score
67/100
Agreement
67%
Analysts
6
Conviction
Contested
Sector Rank
Top 8%
of 226 Industrials peers
Value Analyst neutral
59 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 27.0% shows genuine earnings power backing the valuation
− Price-to-book of 5.0x prices in significant intangible value
Growth Analyst bullish
62 / 100 · Moderate confidence
Strong, accelerating growth with consistent execution
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
Technical Analyst neutral
48 / 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst bullish
75 / 100 · Moderate confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.08) -- balance sheet can absorb a shock
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
90 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+1.00 across 1 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
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Investment Thesis Evolution

Committee score moved marginally from 66.6 to 66.6.

Comparing 2026-08-23 to 2026-08-24 (1 day apart).

Technical Analysis

RSI (14)
55.3
Neutral
MACD Histogram
-0.043
Bearish Momentum
Trend Direction
Sideways
Weekly: Downtrend
Market Structure
Hh Hl
Support
$63.01
Resistance
$65.00
Bollinger %B
0.64
Inside Bands
Price vs Moving Averages
EMA 9
$62.50 Above
EMA 21
$62.08 Above
EMA 50
$61.45 Above
EMA 200
$64.37 Below

Fundamental Analysis

Valuation
80
Growth
70
Profitability
78
Financial Health
83
Cash Flow
70
Valuation
P/E Ratio 17.6×
P/B Ratio 4.74×
PEG Ratio -63.26
Dividend Yield 2.28%
52W High $81.87
52W Low $54.16
Quality & Growth
ROE 2939.7%
ROA 1737.9%
Gross Margin 3859.2%
Operating Margin 1757.5%
Revenue Growth YoY
Debt / Equity 0.37
AI Fundamental Assessment
P/E ratio of 17.6 (inexpensive relative to a 15-40x range); Price-to-book of 4.7x; PEG ratio of -63.3 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 29.4%; Return on assets of 17.4%; Net margin of 13.1%; Gross margin of 38.6%; Current ratio of 1.59 (healthy short-term liquidity); Debt-to-equity of 0.37; Free cash flow per share is positive (4.62); Most recent quarter beat estimates by 10.4%; EPS growth accelerating (-5.6% -> +21.2% QoQ); Average YoY EPS growth of -3.7%; Analyst estimates rising over recent quarters
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