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 $11.1 billion, the company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses, boilers, and water treatment products.
The company's shares have outperformed the broader market over the past year and in 2026. AOS stock has surged 20.2% over the past 52 weeks and 18.1% on a year-to-date (YTD) basis. In comparison, the S&P 500 Index ($SPX) has returned 12.3% over the past year and grown marginally in 2026.
But narrowing the focus, AOS stock has underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 26.3% rise over the past 52 weeks.
On Jan. 29, AOS stock grew 5.3% following the release of its Q4 2025 earnings report. The company’s revenue remained flat year-over-year at $912.5 million and missed the Street’s expectations. However, AOS’ adjusted EPS for the period amounted to $0.90, successfully surpassing Wall Street's estimates. The company expects full-year earnings between $3.85 and $4.15 per share, with revenue between $3.9 billion and $4 billion.
For the current year ending in December 2026, analysts expect A. O. Smith's EPS to grow 4.9% YoY to $4.04 on a diluted basis. The company’s earnings surprise history is strong. It surpassed the consensus estimate in all four quarters.
Among the 14 analysts covering AOS stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, nine “Holds,” and one “Strong Sell.”
The configuration has remained unchanged in recent months.
On Feb. 2, D.A. Davidson analyst Matt Summerville maintained a “Hold” rating for A. O. Smith stock and maintained its price target of $75.
The mean price target of $79.91 indicates just a 1.2% upside potential to AOS’ current price levels. Its Street-high target of $100 suggests the stock could rise as much as 26.6%.
On the date of publication, Sristi Jayaswal 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. For more information please view the Barchart Disclosure Policy here.
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