Jenks Jumps
Growth at reasonable price, long-term horizon, value

A.O. Smith: Heating It Up

There's truly something to be said for understanding how a company makes its money. A.O. Smith (NYSE:AOS) sells water heaters. Easy enough to understand? Yes. Exciting? Maybe not for some. But, that doesn't mean there's nothing heating up at A.O. Smith. Before the heat, an initial and basic overview of "who," "what," "when," "where" and "how" is necessary.

Who?A.O. Smith's water heaters are sold to residential and commercial customers. The company estimates it has captured over 40% of the domestic residential market. That 40+% means A.O. Smith is outpacing its nearest competitor by almost 10%. On the commercial side, A.O. Smith estimates it has captured well over 50% of the market, double the percentage of its nearest...

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