Stifel Reviews A. O. Smith (AOS) After Q4 Beat and Mixed 2026 Outlook

A. O. Smith Corporation (NYSE:AOS) is included among the Dividend Growth Stocks: 25 Aristocrats.

On January 30, Stifel expert Nathan Jones raised his terms nonsubjective connected A. O. Smith Corporation (NYSE:AOS) to $85 from $80. The expert besides maintained a Buy standing connected the stock. He pointed to a fourth-quarter net beat, adjacent arsenic the company’s 2026 gross outlook came successful lighter than expected and the midpoint of EPS guidance fell beneath consensus. Despite the mixed results, shares roseate astir 5%. Stifel believes the determination was apt driven by abbreviated covering.

The institution reported higher fourth-quarter nett connected January 29, supported by coagulated request for residential and commercialized boilers and h2o attraction products successful North America. Management highlighted continued challenges successful China, but margins inactive improved. “Our China margins expanded contempt ongoing unit connected volumes owed to challenging marketplace conditions,” CEO Steve Shafer said. The institution has antecedently said it is exploring strategical partnerships and different options for its China business.

Adjusted nett income for the 4th climbed to $125.4 million, oregon $0.90 per share, up from $109.7 million, oregon $0.75 per share, a twelvemonth earlier. Sales successful North America accrued 3.5% to $713.7 million, helped by pricing and stronger h2o attraction profitability that offset higher input costs.

Total gross for the 4th ended December 31 was $912.5 million, fundamentally level from the anterior year. Looking ahead, A.O. Smith expects full-year net per stock to autumn betwixt $3.85 and $4.15.

A. O. Smith Corporation (NYSE:AOS) designs and applies technology-driven solutions crossed products sold globally. The institution operates done 2 main segments: North America and the remainder of the world.

While we admit the imaginable of AOS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.