Milwaukee, Wisconsin-based A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America and internationally. Valued at a market capitalization of $7.9 billion, the company offers water heaters, boilers, water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and others.
AOS shares have underperformed the broader market over the past year and have also lagged behind in 2026. AOS stock has declined 15% over the past 52 weeks and 14.4% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 27.9% over the past year and risen 9.2% in 2026.
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Narrowing the focus, AOS has also lagged behind the State Street Industrials Select Sector SPDR ETF’s (XLI) 21.6% rise over the past 52 weeks and its 10.7% increase this year.
On Apr. 30, AOS stock declined 2.9% following the release of its Q1 2026 earnings. The company’s revenue declined 1.9% from the prior year’s quarter to $945.6 million and failed to surpass the Street’s estimates. Moreover, its adjusted EPS came in at $0.85, also missing Wall Street estimates. A.O. Smith expects full-year earnings in the range of $3.70 to $4 per share, below what analysts expected.
For the current year, which ends in December, analysts expect AOS’ EPS to decline 1.8% to $3.78 on a diluted basis. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in three of the last four quarters and missed it once.
AOS has a consensus “Hold” rating overall. Of the 13 analysts covering the stock, opinions include four “Strong Buys,” six “Holds,” and three “Strong Sells.”
The configuration has remained unchanged over the past month.
On May 15, J.P. Morgan analyst Tomohiko Sano downgraded AOS from “Neutral” to “Underweight” and lowered its price target from $65 to $60.
AOS’ mean price target of $70.80 indicates a modest premium of 23.6% from the current market prices. While the Street-high target of $84 suggests a robust 46.6% upside potential.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
