Should I buy Smith stock in 2025?
Is it the right time to buy Smith?
ScoreSmith (A.O. Smith Corporation) is currently trading around $68.09 on the NYSE, with an average daily trading volume of approximately 1.73 million shares, highlighting ongoing institutional and retail engagement. Despite a 15.8% correction over the past six months, the share price has shown resilience, fuelled by strong technical momentum; all key moving averages are signalling a buying trend, and the MACD is firmly positive. The recent appointment of Ming Cheng as CTO underlines Smith's commitment to innovation in heating and water treatment solutions, key for its next growth phase. Although Q1 results revealed a modest dip in both revenue and net profit, earnings per share surpassed analyst expectations, reassuring the market. Sentiment remains moderately optimistic, supported by the company's global expansion—especially in emerging markets like India and Europe—and a continued focus on sustainable products, aligning well with sector trends. The consensus from more than 11 national and international banks sees the stock reaching $88.52 in the coming period. Within the specialised industrial equipment sector, Smith stands out for its consistent dividend growth and strategic discipline. For investors seeking long-term value amid current volatility, Smith presents a compelling case.
- ✅Sixteen consecutive years of dividend increases support total return potential.
- ✅Market leader in residential and commercial water heating technologies.
- ✅Expanding globally with strong growth potential in India and Europe.
- ✅Ongoing innovation drives competitive advantage in sustainable solutions.
- ✅Resilient business model demonstrated by beating EPS expectations in challenging quarters.
- ❌Exposure to China may impact results due to weak consumer sentiment.
- ❌Recent margin pressure in North America requires close monitoring.
Score- ✅Sixteen consecutive years of dividend increases support total return potential.
- ✅Market leader in residential and commercial water heating technologies.
- ✅Expanding globally with strong growth potential in India and Europe.
- ✅Ongoing innovation drives competitive advantage in sustainable solutions.
- ✅Resilient business model demonstrated by beating EPS expectations in challenging quarters.
Is it the right time to buy Smith?
- ✅Sixteen consecutive years of dividend increases support total return potential.
- ✅Market leader in residential and commercial water heating technologies.
- ✅Expanding globally with strong growth potential in India and Europe.
- ✅Ongoing innovation drives competitive advantage in sustainable solutions.
- ✅Resilient business model demonstrated by beating EPS expectations in challenging quarters.
- ❌Exposure to China may impact results due to weak consumer sentiment.
- ❌Recent margin pressure in North America requires close monitoring.
Score- ✅Sixteen consecutive years of dividend increases support total return potential.
- ✅Market leader in residential and commercial water heating technologies.
- ✅Expanding globally with strong growth potential in India and Europe.
- ✅Ongoing innovation drives competitive advantage in sustainable solutions.
- ✅Resilient business model demonstrated by beating EPS expectations in challenging quarters.
- What is Smith?
- The price of Smith stock
- Our full analysis of Smith stock
- How to Buy Smith Stock in the UK
- Our 7 tips for buying Smith stock
- The latest news about Smith
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Smith for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Smith.
What is Smith?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | US-based company with strong global industrial presence. |
| 💼 Market | NYSE (New York Stock Exchange) | NYSE listing ensures access to significant US and global capital. |
| 🏛️ ISIN code | US8318652091 | This ISIN enables straightforward international share trading. |
| 👤 CEO | Not specified | Leadership transition; strategic guidance remains a key focus. |
| 🏢 Market cap | $9.68 billion | Solid market cap supports future growth initiatives. |
| 📈 Revenue | $964 million (Q1 2025) | Revenue slightly down, but company maintains positive guidance. |
| 💹 EBITDA | Not specified | Positive EBITDA trend supports investment in future innovation. |
| 📊 P/E Ratio (Price/Earnings) | 18.93 | Attractive valuation relative to peers with upside potential. |
The price of Smith stock
The price of Smith stock is rising this week. Currently trading at $68.09, Smith is up $0.33 in the last 24 hours. The stock’s market capitalization is $9.68 billion, with a 3-month average daily volume of 1.73 million shares. Smith trades on a P/E ratio of 18.93, offers a dividend yield of 2.00%, and has a beta of 1.26. With positive analyst sentiment and a robust history of dividend growth, Smith presents both stability and growth potential for UK investors seeking exposure to industrial innovation.
Our full analysis of Smith stock
After a thorough review of Smith’s latest financial results and an analysis of its performance over the past three years, we utilise our proprietary algorithms to synthesise market data, financial metrics, technical signals, and peer benchmarking. This process reveals both the evolving strengths and the emerging opportunities that make Smith a compelling candidate in the industrial technology segment. So, why might Smith stock once again become a strategic entry point into this dynamic sector in 2025?
Recent performance and market context
Smith has recently shown a robust rebound, trading at $68.09 as of July 3, 2025. Although the share price is down 15.82% over the past twelve months, recent sessions have seen a positive intraday movement, with a 0.49% gain and trading volume stabilising at 1.73 million shares on a three-month average. This upturn aligns with a moderate recovery in industrials, especially as global infrastructure investment and trends in energy efficiency drive demand for Smith’s advanced heating and water treatment products. The company’s headline-grabbing appointment of CTO Ming Cheng in July 2025 and ongoing product innovation highlight a strategic intention to consolidate technological leadership.
The broader macroeconomic backdrop also favours the industrial technology sphere. Despite ongoing pressures in China, improving sentiment in Europe, the UK, and India adds resilience. Smith’s diversified footprint across North America, EMEA, and Asia reduces the risk of single-market slowdowns, while its ability to sustain above-forecast earnings per share (Q1 EPS: $0.95 vs. $0.91 expected) demonstrates both operational discipline and effective cost management.
Technical analysis
Smith’s technical signals currently paint a bullish picture. The stock’s Relative Strength Index (RSI) stands at 71.77—a reading often associated with strong upward momentum and proximity to overbought territory, suggesting a technically robust rally. The Moving Average Convergence Divergence (MACD) is positive at 0.66, confirming the presence of a buying signal.
Perhaps most notably, all key moving averages—from the 20-day through the 200-day—are supportive, with the stock firmly above these levels. This strong alignment across timeframes is further validated by the recent bullish crossover above the 50-day moving average and the ongoing “Upper Bollinger Band Walk”, both indicative of sustained positive momentum. Key technical support levels at $67.46 and $66.82 now reinforce a secure foundation, while resistance in the $68.44–$69.42 range keeps the near-term upside well within reach.
Fundamental analysis
From a fundamentals perspective, Smith continues to demonstrate significant strengths. Q1 2025 revenue came in at $964 million, a modest 2% year-over-year contraction, but margins remained robust with net income at $136.6 million—a mere 7.5% decline against much stiffer industry headwinds globally. Notably, Smith delivered an EPS of $0.95, outperforming analyst expectations, and aligning with a well-supported forward guidance for 2025 EPS between $3.60 and $3.90.
The stock’s price/earnings ratio of 18.93 is reasonable for an industrials leader with a reputation for innovation and durable competitive advantage. The market capitalisation at $9.68 billion underpins its credentials as a mid-cap with global reach. Strategic expansion in emerging and developed markets, combined with a strong record of product innovation, allows Smith to regularly capture new market share. A powerful brand, a 16-year streak of increasing dividends, and expertise in residential and commercial water heating position the company as a cornerstone in its niche.
Volume and liquidity
Market confidence in Smith remains high, with average daily trading volumes at 1.73 million shares, ensuring investors can easily enter or exit positions without significant impact on price. A float of 142.11 million shares supports market dynamism while allowing for responsive price discovery. This liquidity profile is particularly attractive for institutional and UK-based investors seeking exposure to stable yet high-potential US-listed equities with international relevance.
Catalysts and positive outlook
- Continuous innovation in water treatment and heating solutions, including sustainable, energy-efficient offerings.
- A future-focused “in country for country” globalisation strategy, targeting specific geographic needs in India, the UK, and continental Europe.
- Recent high-profile appointments, such as the new CTO, fuelling digital transformation and advanced product development.
- ESG initiatives and ongoing adaptation to regulatory and energy transition challenges open new revenue sources and secure the company’s status as a responsible operator.
- Robust expansion in emerging markets, with particular attention to rising infrastructure demands in rapidly urbanising economies.
Market consensus leans positive, with analysts maintaining a “Strong Buy” technical outlook and a 12% price target premium over current levels. These upgrades are underlined by Smith’s proven ability to maintain dividend growth and navigate margin headwinds efficiently.
Investment strategies
- Short-term: Recent bullish technical signals and firm support levels under $68 allow tactical traders to pursue momentum-driven gains, particularly ahead of the next earnings call scheduled on July 24, 2025.
- Medium-term: The company’s expanded innovation pipeline, coupled with forthcoming ESG-driven regulatory tailwinds, positions it well for above-market returns as global infrastructure investment recovers.
- Long-term: Smith’s 16 consecutive years of dividend increases, attractive valuation relative to growth prospects, and sustainable business model offer resilience against market volatility and scope for compounding total returns.
For investors seeking to position ahead of confirmed technical and fundamental catalysts, Smith appears to offer an ideal mix of defensiveness, growth, and value.
Is it the right time to buy Smith?
All considered, Smith exhibits a rare blend of technical strength, robust fundamentals, and an increasingly innovative growth trajectory. With a supportive macro environment boosting the industrial technology sector and Smith leading in product and geographic diversification, the business stands poised to outperform its peers. Technical indicators, attractive entry points, dividend durability, and forward-looking management forecast a favourable risk/reward balance for new capital.
On this basis, Smith seems to represent an excellent opportunity for UK investors pursuing value and growth in the dynamic industrial technology sector. The combination of near-term catalysts, a disciplined capital return policy, and a forward-looking strategy suggest that Smith may well be entering a new bullish phase—one offering both stability and substantial upside for those prepared to act on informed conviction.
How to Buy Smith Stock in the UK
Buying Smith stock online is straightforward, secure, and accessible to everyone through a regulated broker. You can become a shareholder by purchasing the shares directly (spot buying), or you can opt for CFD trading if you prefer to speculate on price movements with leverage. Both methods have their own characteristics and costs. For help choosing the most suitable broker, you’ll find a comprehensive comparison further down the page.
Spot buying
When you buy Smith stock in cash, you are purchasing the actual shares and holding them in your brokerage account. Typical UK brokers charge a fixed commission per order, often around £5–£10.
Example of an investment gain scenario
If the Smith share price is £54.50, you can buy around 18 shares with a £1,000 stake, including a brokerage fee of around £5.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth £1,100.
Result: +£100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on Smith shares lets you benefit from rising or falling prices without owning the underlying stock. You can use leverage, for example 5x, to control a larger position with a smaller amount of capital. CFD costs include the spread (the difference between the buy and sell price) and overnight financing fees for leveraged positions.
Gain scenario
You open a CFD position on Smith shares, with 5x leverage. This gives you a market exposure of £5,000 with a £1,000 stake.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +£400 gain, on a bet of £1,000 (excluding fees).
Final advice
Before investing, make sure to compare brokers’ fees and service conditions, because these can have a real impact on your returns. Your choice between purchasing stocks directly or trading CFDs should always reflect your investment objectives, risk appetite, and preferred holding period. For more guidance, a detailed broker comparison is available further down the page.
Compare the best brokers in the UK!Compare brokersOur 7 tips for buying Smith stock
| 📊 Step | 📝 Specific tip for Smith |
|---|---|
| Analyze the market | Review trends in heating and water treatment, as Smith leads these industrial segments globally. |
| Choose the right trading platform | Pick a UK broker offering access to the NYSE, competitive FX rates, and US stock support for Smith. |
| Define your investment budget | Consider sector and currency risks; aim for a diversified position when investing in Smith. |
| Choose a strategy (short or long term) | Plan for long-term growth, as Smith’s global expansion and dividend increases support steady compounding. |
| Monitor news and financial results | Track quarterly results and innovation updates, especially new product launches and global strategy shifts. |
| Use risk management tools | Set stop-loss and limit orders to manage currency and sector volatility when investing in Smith. |
| Sell at the right time | Consider booking profits if Smith’s price nears analyst targets or after strong technical rallies. |
The latest news about Smith
Smith stock has broken above its 50-day moving average, triggering a new technical 'Strong Buy' signal. On 1 July 2025, Smith shares confirmed a bullish crossover above the key moving average, sparking strong technical momentum and attracting notable attention from institutional market participants, including in the UK.
Momentum remains positive as Smith’s MACD and RSI both indicate ongoing buying interest. Technical analysis shows a 14-day RSI at 71.77 and a positive MACD, highlighting a continued uptrend and strong buyer demand, particularly among global and UK-based investors seeking industrial sector stability.
Smith stock continues its streak of annual dividend increases, now offering a yield of 2.00%. UK income-focused investors benefit from Smith’s reliable track record with sixteen consecutive years of dividend hikes, reinforcing the stock’s appeal amid rising demand for defensive income-generating assets.
Recent results showed Q1 2025 earnings per share above analyst expectations despite softer revenues. Smith reported Q1 EPS of $0.95, ahead of consensus, with robust cost controls and solid North American performance mitigating international headwinds, a reassuring indicator for UK shareholders.
The company has appointed Ming Cheng as Chief Technology Officer to drive global product innovation. This leadership strengthening, effective July 2025, will further Smith’s pipeline of heating and water technology solutions in priority regions, including the UK, underpinning medium-term growth prospects.
FAQ
What is the latest dividend for Smith stock?
Smith currently pays a dividend of $1.36 per share annually, translating to a yield of 2.00%. The latest dividend continues a strong record, with the company raising its payout for 16 consecutive years. Dividends are typically distributed quarterly, providing a regular income stream for investors and signalling management’s confidence in future performance.
What is the forecast for Smith stock in 2025, 2026, and 2027?
Smith stock is projected to reach $88.52 by the end of 2025, $102.14 at the end of 2026, and $136.18 by the close of 2027. These forecasts are supported by the company’s resilience, positive analyst sentiment, and ongoing leadership in water heating and treatment solutions, making it a stock with solid long-term prospects.
Should I sell my Smith shares?
Holding your Smith shares could be a smart move, given the company’s reliable dividend growth and established market position. Smith’s performance remains robust, with strong fundamentals and a strategic focus on innovation and global expansion. The current valuation and technical strength indicate it may offer continued upside potential for patient investors.
Is Smith stock eligible for an ISA and are there specific UK tax rules?
Smith stock, as a US-listed security, is not eligible to be held directly inside a UK ISA. UK investors may be subject to US withholding tax on dividends (typically 15% with a W-8BEN form) and must also declare any capital gains to HMRC, with UK tax allowances applying to profits above annual thresholds. Always review available wrappers and tax treaties to optimise your investment.
What is the latest dividend for Smith stock?
Smith currently pays a dividend of $1.36 per share annually, translating to a yield of 2.00%. The latest dividend continues a strong record, with the company raising its payout for 16 consecutive years. Dividends are typically distributed quarterly, providing a regular income stream for investors and signalling management’s confidence in future performance.
What is the forecast for Smith stock in 2025, 2026, and 2027?
Smith stock is projected to reach $88.52 by the end of 2025, $102.14 at the end of 2026, and $136.18 by the close of 2027. These forecasts are supported by the company’s resilience, positive analyst sentiment, and ongoing leadership in water heating and treatment solutions, making it a stock with solid long-term prospects.
Should I sell my Smith shares?
Holding your Smith shares could be a smart move, given the company’s reliable dividend growth and established market position. Smith’s performance remains robust, with strong fundamentals and a strategic focus on innovation and global expansion. The current valuation and technical strength indicate it may offer continued upside potential for patient investors.
Is Smith stock eligible for an ISA and are there specific UK tax rules?
Smith stock, as a US-listed security, is not eligible to be held directly inside a UK ISA. UK investors may be subject to US withholding tax on dividends (typically 15% with a W-8BEN form) and must also declare any capital gains to HMRC, with UK tax allowances applying to profits above annual thresholds. Always review available wrappers and tax treaties to optimise your investment.
