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

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1][4] Style Scores Overview - Zacks Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each designed to help investors identify stocks with the best potential for market outperformance [2][3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - The Growth Score assesses a company's financial health and future growth potential based on earnings and sales projections [2] - The Momentum Score evaluates stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [2] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [4][5] - To optimize returns, investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings outlook changes [5] Company Spotlight: A.O. Smith Corporation (AOS) - A.O. Smith Corporation, based in Milwaukee, WI, is a leading manufacturer of water heating and treatment products, focusing on innovative and energy-efficient solutions [6] - AOS currently holds a Zacks Rank of 3 (Hold) with a VGM Score of B and a Momentum Style Score of B, indicating potential for upward movement [6] - Recent upward revisions in earnings estimates by analysts suggest a consensus estimate of $4.08 per share for fiscal 2024, with an average earnings surprise of 6.7% [6]