41.41 -0.81 (-1.97%) Sell

AOS investors dump it for better alternatives

13 min read

SMITH A O CORP delivered massive losses today. It lost -1.97% to close at 41.41. It's recent 5 day performance has been -0.78%, -0.21%, -0.72%, -2.14% and -1.55%.

[Themes containing AOS]

AOS is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +22.1% for investors.


AOS has been underperforming the SP500 index in recent time, after having outperformed till 20 Apr, 2018. Over the last 2 years 11 months and 10 days, AOS underperformed the SP500 index on 45% days. Which indicates that on days AOS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months AOS was mostly loss making and delivered on average -0.55% per day. It's best return during this period (of +8.14%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -5.97%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 1 Nov, 2018 and went on till 2 Nov, 2018. The bullish trend returned +5.62% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 14 Dec, 2018. This bearish trend lost -14.59% of investor capital.

AOS had 4 profitable and 8 loss making months over the last year. During the last year, AOS underperformed SP500 index on monthly return basis. AOS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.47% compared to -7.28% returned by SP500 index in Oct 2018. AOS had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -5.23%. It is interesting to note that both AOS and SP500 index significantly outperform during months when quarterly/annual results are announced.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher

AOS is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AOS's volatility from 17 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AOS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than AOS. Therefore, SP500 must receive a lower allocation than AOS in your portfolio. SP500 index usually has shorter drawdown period than AOS.

On a general note (since you are interested in AOS), CSCO is a large cap that deserves to be closely tracked for investment opportunities.

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