A. O. Smith Corporation : No turn-around in sight
Entry price | Target | Stop-loss | Potential |
---|
$71.61 |
$83 |
$67 |
+15.91% |
---|
A. O. Smith Corporation shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths● The company is in a robust financial situation considering its net cash and margin position.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Weaknesses● The company appears highly valued given the size of its balance sheet.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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