A.O. Smith manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks and water treatment products. Co.'s North America segment serves residential and commercial end markets with a range of products including: Water heaters, Boilers, Water treatment products and Other, which manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. Co.'s Rest of World segment manufactures and markets water treatment products, primarily incorporating reverse osmosis technology, and commercial water treatment products. Co. also designs and markets range hoods and cooktops in China.
When researching a stock like A O Smith, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from AOS Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for AOS stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the AOS 200 day moving average ("AOS 200 DMA"), while one of the most popular "shorter look-backs" is the AOS 50 day moving average ("AOS 50 DMA"). A chart showing both of these popular moving averages is shown on this page for A O Smith. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AOS 200 DMA and the AOS 50 DMA, we get a moving average convergence divergence indicator ("AOS MACD"). The AOS MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |