Posted on November 24, 2021
Milwaukee’s A.O. Smith Corporation (NYSE:AOS) has been heating water through sub-zero Wisconsin winters since 1874.
Today, the company manufactures both gas and electric units and sells them to individuals and institutions across the planet.
At the end of October, AOS beat earnings estimates and buyers went warp-wild on the stock, creating the great money-making opportunity before us today.
Not to worry, sugar.
Anyway, there’s a lot to be said, so let’s start with the fundamentals –
As mentioned above, better-than-expected Q3 results sent the stock into geyser mode (the not-so-surprising result of diminished expectations).
Additionally, the company admitted that a great proportion of its third-quarter revenue was generated by inflation. The company merely passed on its inputs to consumers.
Water heater prices are up some 50% this year.
Many happy returns!