A.O. Smith Corporation (AOS) Stock Analysis
Falling Knife setup
Industrials · Specialty Industrial Machinery
Hold if already holding. Not a fresh buy at $60.73, but acceptable to hold if already in. Reason: Negative momentum.
A.O. Smith manufactures residential and commercial water heaters, boilers, heat pumps, and water treatment products through North America (78% of 2025 sales) and Rest of World segments (primarily China, India, Europe). The company is the largest manufacturer and marketer of... Read more
Hold if already holding. Not a fresh buy at $60.73, but acceptable to hold if already in. Reason: Negative momentum. Chart setup: Death cross, below all MAs, RSI 31, MACD bearish. Maintain position. Not compelling to add more. Score 5.7/10, moderate confidence.
Passes 5/6 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear). Fails on weak momentum. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWGeographicChina18%10-K Item 1A: 'approximately 18 percent of our sales in 2025 were attributable to China'
- MEDIUMCustomertop-5 customers41%10-K Item 1A: 'Sales to our five largest customers represented approximately 41 percent of our sales in 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $60.73, but acceptable to hold if already in. Reason: Negative momentum. Chart setup: Death cross, below all MAs, RSI 31, MACD bearish. Maintain position. Not compelling to add more. Target $68.12 (+12.2%), stop $58.04 (−4.6%), A.R:R 1.9:1. Score 5.7/10, moderate confidence.
Take-profit target: $68.12 (+12.5% upside). Target $68.12 (+12.2%), stop $58.04 (−4.6%), A.R:R 1.9:1. Stop-loss: $58.04.
Negative momentum.
A.O. Smith Corporation trades at a P/E of 16.5 (forward 14.7). TrendMatrix value score: 6.9/10. Verdict: Hold.
18 analysts cover AOS with a consensus score of 3.6/5. Average price target: $78.
What does A.O. Smith Corporation do?A.O. Smith manufactures residential and commercial water heaters, boilers, heat pumps, and water treatment products...
A.O. Smith manufactures residential and commercial water heaters, boilers, heat pumps, and water treatment products through North America (78% of 2025 sales) and Rest of World segments (primarily China, India, Europe). The company is the largest manufacturer and marketer of water heaters in North America, with brands A.O. Smith, State, Lochinvar, and Aquasana. China represented approximately 18% of 2025 sales, and the top five customers represented approximately 41% of total sales.