A1OS34 trade ideas
A.O. Smith; awaiting Q1 EPS results to enter a long positionA.O. Smith corp. has a history of stable EPS growth; however, the Corona lockdown is likely to affect the EPS in 2020 and maybe the consecutive year’s expected growth. In FY 2009, the company traded at a P/E ratio of 13 in average. Taking a very pessimistic perspective, one could argue that the economy will experience a recession similar to the one in 2008, that the P/E ratio will fall as the future growth perspectives turn negative. At the same time yearly EPS fall to $1.7, which would justify the stock price falling to $1.7*13 = $22.1. Shortly after the recession as future prospects get better and the company is able to generate higher EPS, we could expect both annual EPS and P/E ratio to recover and the share price to bounce back to $2.6*19 = 49.4$. This is an extreme perspective and a more realistic movement of the share price could be: share price falling to $1.5*19 = $28.5 (within April 2020) and bouncing back to $2.23*19 = 42,3 $ by the end of 2021.
Buying idea
Option 1 Option 2
Entry price $28.5 $22.5
Take profit $42.75 $49.5
Max expected holding period 18-months 18-months
Profit 50% 220%
I`ll buy the stock as soon as it hits $28.5. Good luck!
AOS forming an inverse head and shoulders.AOS has been forming an inverse head and shoulders since May of 2021 and now looks like it's ready to move higher.
Fundamentally, the company's doing pretty well and is expected to do better in the coming year with increasing earnings per share and sales.
Technically, it has been on a solid up trend and now is looking to continue. With a Beta over one it's expected to continue in the direction of the general market.
Trade idea:
* Look for buying opportunities after a daily close above $73.05 to further confirm the inverse HS break out.
Target:
* The target for this pattern break would be around the $80.50 area.
$AOS Basing around its 50 MA (H&S Continuation Pattern)$AOS inverse head & shoulders continuation pattern right underneath ATHs. The green dotted line on the chart is the ATHs from back in 2018. #TAPLOTWL
Smith A O Corp (AOS)- MANUFACTURES WATER HEATING EQUIPMENT FOR VARIOUS RESIDENTIAL AND COMMERCIAL MARKETS WORLDWIDE.
AOS. In consolidation mode.AOS is at AH and has formed round base on weekly and now consolidating in symmetrical triangle, that means both possible directions which price could move.
One should notice that the price forming a handle and it also can decline more.
Not a recommendation, just an observation.
BUY to SMITH A O CORPHey people, SMITH A O CORP is in a bearish fake dynamic with bearish continuation and more buying and selling volume. In TIMEFRAME 5 1Min we see a bull line, which means that there is no decision. But the tendency remains buying, it will break its VWAP with force and break through the stabilization zone. Strong potential to join the last previous high but there is a bullish gap to fill. We can arrive on the bottom of the fence of this one, which is a strong support See the TIMEFRAME 4H.
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