Why A.O. Smith (AOS) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics [2][3][4] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each assessing different investment characteristics [2][3][4] - Value Score identifies attractive stocks using ratios like P/E and Price/Sales [2] - Growth Score focuses on a company's financial health and future outlook, analyzing earnings and cash flow [3] - Momentum Score evaluates price trends and earnings estimates to identify favorable buying opportunities [3] - VGM Score combines all three styles to highlight stocks with the best overall potential [4] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [5] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [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 currently holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating potential for growth [7][8] - The company is forecasted to achieve year-over-year earnings growth of 7.4% for the current fiscal year, with upward revisions in earnings estimates [7]