AOS · NYSE · STOCK
A. O. Smith (AOS) Stock Analysis
$62.73
52W $54.16 – $81.87
67/100
$8.74B
17.6
1.16
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)
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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