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Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

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A.O. Smith (AOS)

Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.

AOS boasts a Momentum Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of A.O. Smith has seen some interesting price action recently; the stock is up 9.6% over the past one week and up 1.2% over the past four weeks. And in the last one-year period, AOS has gained 14.7%. As for the stock's trading volume, 1,015,504.50 shares on average were traded over the last 20 days.

Momentum investors also pay close attention to a company's earnings. For AOS, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $3.47 per share for 2023. AOS boasts an average earnings surprise of 8%.

AOS should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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A. O. Smith Corporation (AOS) : Free Stock Analysis Report

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Zacks Investment Research