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

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [2] Value Score - The Value Style Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, and Price/Sales [2] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [3] Momentum Score - The Momentum Style Score assesses trends in stock prices and earnings estimates, indicating optimal times to invest in high-momentum stocks [3] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth potential, and momentum, serving as a strong indicator alongside the Zacks Rank [4] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [6] Company Spotlight: A.O. Smith Corporation (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 Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance potential [7] - The company is projected to experience year-over-year earnings growth of 6.3% for the current fiscal year, with upward revisions in earnings estimates from analysts [7][8]