Should You Add A.O. Smith Corporation (AOS) to Your Portfolio as the Orders Rebound?

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TimesSquare Capital Management, an equity investment management company, released its “U.S. Small/Mid Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2500 Growth Index and returned 6.03% (gross), and the index return was 4.72%. For the full year, the strategy return was -25.06% (gross) compared to a -26.21% return for the benchmark. The relative weakness in the Information Technology and Energy sectors in the quarter was offset by strength in the Financials, Consumer Discretionary, Health Care, and Industrials sectors. In addition, please check the fund’s top five holdings to know its best picks in 2022.

TimesSquare U.S. Small/Mid Cap Growth Strategy highlighted stocks like A. O. Smith Corporation (NYSE:AOS) in its Q4 2022 investor letter. Headquartered in Milwaukee, Wisconsin, A. O. Smith Corporation (NYSE:AOS) is a manufacturer of residential and commercial gas, heat pumps, and electric water heaters, boilers, tanks, and water treatment products. On March 23, 2023, A. O. Smith Corporation (NYSE:AOS) stock closed at $66.29 per share. One-month return of A. O. Smith Corporation (NYSE:AOS) was 2.14%, and its shares lost 1.02% of their value over the last 52 weeks. A. O. Smith Corporation (NYSE:AOS) has a market capitalization of $10.004 billion.

TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about A. O. Smith Corporation (NYSE:AOS) in its Q4 2022 investor letter:

"We trimmed our position on that strength. Added to the strategy this quarter was A. O. Smith Corporation (NYSE:AOS), the leading global manufacturer of residential and commercial-grade water heaters and boilers. The company saw a rebound in orders after a period of steady inventory destocking, which added to our assessment that A.O. Smith was poised to benefit from increased sales and improving margins. In addition, its sales in China have stabilized."

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A. O. Smith Corporation (NYSE:AOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held A. O. Smith Corporation (NYSE:AOS) at the end of the fourth quarter which was 29 in the previous quarter.

We discussed A. O. Smith Corporation (NYSE:AOS) in another article and shared the list of biggest plumbing supply companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.