Shareholders Should Be Pleased With A. O. Smith Corporation’s (NYSE:AOS) Price
It’s not a stretch to say that A. O. Smith Corporation’s (NYSE:AOS) price-to-earnings (or “P/E”) ratio of 19.6x right now seems quite “middle-of-the-road” compared to the market in the United States, where the median P/E ratio is around 19x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
While the market has experienced earnings growth lately, A. O. Smith’s earnings have gone into reverse gear, which is not great. One possibility is that the P/E…
