AOS Smith AO Corporation

A.O. Smith's stock is performing well, driven by strong demand for water heating and treatment, shareholder returns, and regulatory tailwinds. The company's steady growth, earnings execution, and share repurchases have made it a "quiet outperformer" in the market, attracting long-term investors. Wall Street analysts are cautiously constructive, seeing modest upside but praising its resilient business model and shareholder-friendly policies.

Stifel has maintained a "Hold" rating on Ingersoll Rand Inc. (IR) and increased its price target from $75 to $81, citing tariff-related price hikes and strong pricing power for diversified industrial companies. Meanwhile, Citi reiterated its "Buy" rating and boosted its price objective for IR from $91 to $94, expecting industry development in 2026 driven by artificial intelligence, despite revised EBITDA guidance due to tariff impacts and backlog growth delays. Ingersoll Rand operates in industrial technologies and precision and science technologies, and both firms anticipate continued growth for the company, though some AI stocks are seen as having greater upside potential.

A. O. Smith (NYSE: AOS) appears undervalued with a 21.1% discount based on a Discounted Cash Flow (DCF) analysis and trades below its fair Price-to-Earnings (PE) ratio. The company's recent expansion in water treatment and high-efficiency water heating, alongside investments in innovation and international markets, positions it for long-term growth. This analysis suggests A. O. Smith offers an attractive investment opportunity given its current valuation metrics.

Analysts have responded positively to Zurn Elkay Water Solutions (ZWS) after strong Q3 earnings and raised guidance, leading to fresh Buy ratings for the stock. Despite a significant share price increase of 27.8% year-to-date and 134.1% over three years, Simply Wall St suggests the company is currently undervalued by 8% with a fair value of $51.25. However, while the narrative supports higher earnings and margin expansion, an earnings-based valuation indicates the stock trades at 42.2 times earnings, higher than the industry average, which could pose a risk if growth slows.

A.O. Smith Corp. (AOS) shares fell 1.28% to $67.94 on Tuesday, breaking a four-day winning streak. This underperformance occurred during a generally negative trading session, with the S&P 500 Index and Dow Jones Industrial Average also experiencing declines.

A. O. Smith Corporation (AOS) has seen its stock decline significantly from its 52-week high and is underperforming the Dow Jones Industrials Average ($DOWI) over multiple timeframes. Despite beating Q3 2025 expectations, shares fell due to a lowered full-year outlook, citing economic weakness in China and a softening North American housing market. Analysts, however, remain moderately optimistic with a "Moderate Buy" rating and a price target suggesting a 14.1% premium to current levels.