On Sep 4, we issued an updated research report on A. O. Smith Corporation AOS.

In the past three months, this Zacks Rank #3 (Hold) stock has lost 4.4% against the industry’s growth of 7.3%.

Present Scenario

A. O. Smith has been benefiting from solid demand for its water treatment products in the United States along with improvement in the effectiveness of its direct-to-consumer channel. For 2020, the company expects sales growth of 20-22% from its water treatment business in North America. Going forward, its focus on investments in product developments, automation and production efficiency is also likely to be beneficial.

Also, A. O. Smith’s acquisition of Water-Right (in April 2019) has strengthened its growth opportunities in the water treatment industry. For instance, the company anticipates the Water-Right business to generate incremental sales in the second half of 2020.

In addition, it remains committed to rewarding shareholders handsomely through dividend

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