Here's How Much a $1000 Investment in A.O. Smith Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in A.O. Smith (AOS) ten years ago? It may not have been easy to hold on to AOS for all that time, but if you did, how much would your investment be worth today?
A.O. Smith's Business In-Depth
With that in mind, let's take a look at A.O. Smith's main business drivers.
Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.
A. O. Smith reports operations under two geographic segments — North America and Rest of World. The segments are briefly discussed below:
North America (75.1% of total segmental sales generated in 2022): This segment engages in manufacturing and marketing of water heaters, boilers, water treatment products, commercial solar water heating systems, expansion tanks, swimming pool and spa heaters, and others. These products are sold primarily to the company's commercial and residential customers in North America.
Main product brands under this segment are Lochinvar, Aquasana, Bradford White, Rheem, Rinnai, Navien and Aerco.
Rest of World (24.9% of total segmental sales generated in 2022): This segment comprises operations in India, China, the Middle East and Europe markets. It primarily manufactures and markets vast products, comprising fully modulating, non-condensing gas tankless water heater. Apart from this, the segment manufactures air purifier and water treatment products, especially in Asia.
In China, the company develops water purifier, combi boiler, gas tankless, residential & commercial heat pump, air purifier, and other products.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in A.O. Smith a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2013 would be worth $3,898.60, or a 289.86% gain, as of July 19, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 169.63% and the price of gold went up 48.08% over the same time frame.
Analysts are forecasting more upside for AOS too.
Improving supply chains and robust demand for commercial and residential boilers and water treatment products in North America is expected to have aided A. O. Smith’s second-quarter performance. Results will be available on Jul 27. Higher sales from India are supporting the Rest of the World unit’s performance amid weakness in China. The company’s efforts to add shareholder value hold promise. In the first quarter, AOS paid dividends of $45.4 million, up 2.7% year over year. It repurchased shares worth $53.1 million. The Zacks Consensus Estimate for A. O. Smith’s current-year earnings has been revised upward by 3.6% in the past 90 days. However, lower volumes in the residential water heater industry are hurting the company’s operations. Also, foreign currency headwinds are affecting AOS' sales in China.
Shares have gained 9.16% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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A. O. Smith Corporation (AOS) : Free Stock Analysis Report
