Here's Why A.O. Smith (AOS) is a Strong Momentum Stock

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [1] - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [1] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [2] Growth Score - The Growth Style Score assesses a company's future prospects and financial health by examining projected and historical earnings, sales, and cash flow [3] Momentum Score - The Momentum Style Score identifies optimal times to invest based on trends in stock price and earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes [3] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [4] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [5] - There are over 800 top-rated stocks available, making it essential for investors to choose wisely [5] Stock to Watch: A.O. Smith (AOS) - A.O. Smith Corporation is a leading manufacturer of water heating and treatment products, known for innovative and energy-efficient solutions [7] - AOS holds a 3 (Hold) Zacks Rank and a VGM Score of B, with a Momentum Style Score of B and a 1.6% increase in shares over the past four weeks [7] - The Zacks Consensus Estimate for AOS's fiscal 2024 earnings has risen to $4.08 per share, with an average earnings surprise of 6.7% [7]