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10400.0
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2022-11-14 00:00:00 UTC
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What Makes Aaon (AAON) a Good Fit for "Trend Investing"
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AAON
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https://www.nasdaq.com/articles/what-makes-aaon-aaon-a-good-fit-for-trend-investing
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nan
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nan
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Aaon (AAON) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. AAON is quite a good fit in this regard, gaining 27.2% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 43.9% over the past four weeks ensures that the trend is still in place for the stock of this maker of air conditioning and heating equipment.
Moreover, AAON is currently trading at 84.1% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in AAON may not reverse anytime soon.
In addition to AAON, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaon (AAON) is one of the several suitable candidates that passed through the screen. AAON is quite a good fit in this regard, gaining 27.2% over this period. Moreover, AAON is currently trading at 84.1% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
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Aaon (AAON) is one of the several suitable candidates that passed through the screen. AAON is quite a good fit in this regard, gaining 27.2% over this period. Moreover, AAON is currently trading at 84.1% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
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Aaon (AAON) is one of the several suitable candidates that passed through the screen. AAON is quite a good fit in this regard, gaining 27.2% over this period. Moreover, AAON is currently trading at 84.1% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
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So, the price trend in AAON may not reverse anytime soon. Aaon (AAON) is one of the several suitable candidates that passed through the screen. AAON is quite a good fit in this regard, gaining 27.2% over this period.
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10401.0
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2022-11-09 00:00:00 UTC
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AAON Reaches Analyst Target Price
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AAON
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https://www.nasdaq.com/articles/aaon-reaches-analyst-target-price
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nan
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nan
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In recent trading, shares of AAON, Inc. (Symbol: AAON) have crossed above the average analyst 12-month target price of $72.33, changing hands for $74.75/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets within the Zacks coverage universe contributing to that average for AAON, Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $72.00. And then on the other side of the spectrum one analyst has a target as high as $73.00. The standard deviation is $0.577.
But the whole reason to look at the average AAON price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAON crossing above that average target price of $72.33/share, investors in AAON have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $72.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AAON, Inc.:
RECENT AAON ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 3 3 2 2
Buy ratings: 0 0 0 0
Hold ratings: 0 0 0 0
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.0 1.0 1.0 1.0
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAON — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
Also see:
MDIV Historical Stock Prices
AGR shares outstanding history
Top Ten Hedge Funds Holding DRII
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But the whole reason to look at the average AAON price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAON crossing above that average target price of $72.33/share, investors in AAON have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $72.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AAON, Inc. (Symbol: AAON) have crossed above the average analyst 12-month target price of $72.33, changing hands for $74.75/share.
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In recent trading, shares of AAON, Inc. (Symbol: AAON) have crossed above the average analyst 12-month target price of $72.33, changing hands for $74.75/share. But the whole reason to look at the average AAON price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 3 different analyst targets within the Zacks coverage universe contributing to that average for AAON, Inc., but the average is just that — a mathematical average.
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There are 3 different analyst targets within the Zacks coverage universe contributing to that average for AAON, Inc., but the average is just that — a mathematical average. And so with AAON crossing above that average target price of $72.33/share, investors in AAON have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $72.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AAON, Inc. (Symbol: AAON) have crossed above the average analyst 12-month target price of $72.33, changing hands for $74.75/share.
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There are 3 different analyst targets within the Zacks coverage universe contributing to that average for AAON, Inc., but the average is just that — a mathematical average. Get the latest Zacks research report on AAON — FREE. In recent trading, shares of AAON, Inc. (Symbol: AAON) have crossed above the average analyst 12-month target price of $72.33, changing hands for $74.75/share.
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10402.0
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2022-11-08 00:00:00 UTC
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Daily Dividend Report: ALV,AAON,L,ARMK,ENR
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AAON
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https://www.nasdaq.com/articles/daily-dividend-report%3A-alvaaonlarmkenr
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nan
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nan
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Autoliv, the worldwide leader in automotive safety systems, today announced that its quarterly dividend will be increased by 3% to 66 cents per share, from 64 cents, for the fourth quarter of 2022. "Autoliv remains committed to creating value for shareholders and the Board of Directors is pleased to approve a higher dividend payout this quarter," says Jan Carlson, Chairman of the Board of Directors. The dividend will be payable on Friday, December 9, 2022 to Autoliv shareholders of record on the close of business on Tuesday, November 22. The ex-date will be Monday, November 21.
AAON, today announced that its Board of Directors has declared the Company's next regular semi-annual cash dividend of $0.24 per share (or $0.48 annually), an increase of 26%, payable on December 16, 2022 to stockholders of record as of the close of business on November 28, 2022.
Loews announced today the declaration of the Company's quarterly dividend of $0.0625 per share of Common Stock, payable December 6, 2022 to shareholders of record as of the close of business on November 23, 2022.
Aramark's Board of Directors approved a quarterly dividend of 11 cents per share of common stock payable on December 5, 2022 to stockholders of record at the close of business on November 22, 2022.
Energizer Holdings announced that its Board of Directors declared a dividend on its common stock of $0.30 per share. The dividend will be payable on December 16, 2022 to shareholders of record as of the close of business on November 28, 2022.
VIDEO: Daily Dividend Report: ALV,AAON,L,ARMK,ENR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON, today announced that its Board of Directors has declared the Company's next regular semi-annual cash dividend of $0.24 per share (or $0.48 annually), an increase of 26%, payable on December 16, 2022 to stockholders of record as of the close of business on November 28, 2022. VIDEO: Daily Dividend Report: ALV,AAON,L,ARMK,ENR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Loews announced today the declaration of the Company's quarterly dividend of $0.0625 per share of Common Stock, payable December 6, 2022 to shareholders of record as of the close of business on November 23, 2022.
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AAON, today announced that its Board of Directors has declared the Company's next regular semi-annual cash dividend of $0.24 per share (or $0.48 annually), an increase of 26%, payable on December 16, 2022 to stockholders of record as of the close of business on November 28, 2022. VIDEO: Daily Dividend Report: ALV,AAON,L,ARMK,ENR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Loews announced today the declaration of the Company's quarterly dividend of $0.0625 per share of Common Stock, payable December 6, 2022 to shareholders of record as of the close of business on November 23, 2022.
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AAON, today announced that its Board of Directors has declared the Company's next regular semi-annual cash dividend of $0.24 per share (or $0.48 annually), an increase of 26%, payable on December 16, 2022 to stockholders of record as of the close of business on November 28, 2022. VIDEO: Daily Dividend Report: ALV,AAON,L,ARMK,ENR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Loews announced today the declaration of the Company's quarterly dividend of $0.0625 per share of Common Stock, payable December 6, 2022 to shareholders of record as of the close of business on November 23, 2022.
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AAON, today announced that its Board of Directors has declared the Company's next regular semi-annual cash dividend of $0.24 per share (or $0.48 annually), an increase of 26%, payable on December 16, 2022 to stockholders of record as of the close of business on November 28, 2022. VIDEO: Daily Dividend Report: ALV,AAON,L,ARMK,ENR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Loews announced today the declaration of the Company's quarterly dividend of $0.0625 per share of Common Stock, payable December 6, 2022 to shareholders of record as of the close of business on November 23, 2022.
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10403.0
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2022-10-28 00:00:00 UTC
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Why Shares of AAON Soared This Week
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AAON
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https://www.nasdaq.com/articles/why-shares-of-aaon-soared-this-week
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nan
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nan
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What happened
Shares of premium heating, ventilation, and air-conditioning (HVAC) company AAON (NASDAQ: AAON) soared by 12.2% this week through the close of trading on Thursday.
In a week where major industrial companies reported earnings, AAON's stock performance wasn't so much about its earnings (they will be released on Nov.7) but more about what its peers, like Carrier (NYSE: CARR), are saying.
AAON is a player in the premium industrial, commercial, and nonresidential HVAC market. That's a good thing right now because it's a case of two markets. First, the residential market is slowing due to tough comparisons with 2021 (when consumers elected to spend more on their homes due to stay-at-home measures) and slowing consumer spending.
On the other hand, the nonresidential HVAC market is in excellent health, driven by a reopening economy; spending on ensuring healthy, clean buildings, and retrofit demand from the desire to improve efficiency and reduce emissions.
So what
Carrier's results, released this week, helped to underline these diverging trends. For example, Carrier's light commercial and residential orders in the third quarter were down 5% to 10%. On the other hand, its commercial HVAC orders were up 15% to 20%. It's the latter that provides a direct read-across to AAON's prospects for the quarter.
Now what
For investors who like to keep abreast of what AAON might report on Nov. 7, it's a good idea to take a look at what peers Trane Technologies (NYSE: TT) and Johnson Controls (NYSE: JCI) say when they release earnings on Nov. 2 and Nov. 3, respectively. If Carrier's results are anything to go by, then AAON's core U.S. nonresidential market is in excellent shape right now.
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Lee Samaha has positions in Trane Technologies plc. The Motley Fool has positions in and recommends AAON. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of premium heating, ventilation, and air-conditioning (HVAC) company AAON (NASDAQ: AAON) soared by 12.2% this week through the close of trading on Thursday. In a week where major industrial companies reported earnings, AAON's stock performance wasn't so much about its earnings (they will be released on Nov.7) but more about what its peers, like Carrier (NYSE: CARR), are saying. AAON is a player in the premium industrial, commercial, and nonresidential HVAC market.
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What happened Shares of premium heating, ventilation, and air-conditioning (HVAC) company AAON (NASDAQ: AAON) soared by 12.2% this week through the close of trading on Thursday. In a week where major industrial companies reported earnings, AAON's stock performance wasn't so much about its earnings (they will be released on Nov.7) but more about what its peers, like Carrier (NYSE: CARR), are saying. AAON is a player in the premium industrial, commercial, and nonresidential HVAC market.
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What happened Shares of premium heating, ventilation, and air-conditioning (HVAC) company AAON (NASDAQ: AAON) soared by 12.2% this week through the close of trading on Thursday. In a week where major industrial companies reported earnings, AAON's stock performance wasn't so much about its earnings (they will be released on Nov.7) but more about what its peers, like Carrier (NYSE: CARR), are saying. AAON is a player in the premium industrial, commercial, and nonresidential HVAC market.
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In a week where major industrial companies reported earnings, AAON's stock performance wasn't so much about its earnings (they will be released on Nov.7) but more about what its peers, like Carrier (NYSE: CARR), are saying. AAON is a player in the premium industrial, commercial, and nonresidential HVAC market. What happened Shares of premium heating, ventilation, and air-conditioning (HVAC) company AAON (NASDAQ: AAON) soared by 12.2% this week through the close of trading on Thursday.
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10404.0
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2022-10-17 00:00:00 UTC
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Implied DON Analyst Target Price: $47
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AAON
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https://www.nasdaq.com/articles/implied-don-analyst-target-price%3A-%2447
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. MidCap Dividend Fund ETF (Symbol: DON), we found that the implied analyst target price for the ETF based upon its underlying holdings is $47.42 per unit.
With DON trading at a recent price near $38.73 per unit, that means that analysts see 22.44% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DON's underlying holdings with notable upside to their analyst target prices are eXp World Holdings Inc (Symbol: EXPI), Targa Resources Corp (Symbol: TRGP), and AAON, Inc. (Symbol: AAON). Although EXPI has traded at a recent price of $11.33/share, the average analyst target is 103.00% higher at $23.00/share. Similarly, TRGP has 37.52% upside from the recent share price of $64.96 if the average analyst target price of $89.33/share is reached, and analysts on average are expecting AAON to reach a target price of $72.33/share, which is 33.41% above the recent price of $54.22. Below is a twelve month price history chart comparing the stock performance of EXPI, TRGP, and AAON:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
WisdomTree U.S. MidCap Dividend Fund ETF DON $38.73 $47.42 22.44%
eXp World Holdings Inc EXPI $11.33 $23.00 103.00%
Targa Resources Corp TRGP $64.96 $89.33 37.52%
AAON, Inc. AAON $54.22 $72.33 33.41%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WisdomTree U.S. MidCap Dividend Fund ETF DON $38.73 $47.42 22.44% eXp World Holdings Inc EXPI $11.33 $23.00 103.00% Targa Resources Corp TRGP $64.96 $89.33 37.52% AAON, Inc. AAON $54.22 $72.33 33.41% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DON's underlying holdings with notable upside to their analyst target prices are eXp World Holdings Inc (Symbol: EXPI), Targa Resources Corp (Symbol: TRGP), and AAON, Inc. (Symbol: AAON). Similarly, TRGP has 37.52% upside from the recent share price of $64.96 if the average analyst target price of $89.33/share is reached, and analysts on average are expecting AAON to reach a target price of $72.33/share, which is 33.41% above the recent price of $54.22.
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Three of DON's underlying holdings with notable upside to their analyst target prices are eXp World Holdings Inc (Symbol: EXPI), Targa Resources Corp (Symbol: TRGP), and AAON, Inc. (Symbol: AAON). Similarly, TRGP has 37.52% upside from the recent share price of $64.96 if the average analyst target price of $89.33/share is reached, and analysts on average are expecting AAON to reach a target price of $72.33/share, which is 33.41% above the recent price of $54.22. WisdomTree U.S. MidCap Dividend Fund ETF DON $38.73 $47.42 22.44% eXp World Holdings Inc EXPI $11.33 $23.00 103.00% Targa Resources Corp TRGP $64.96 $89.33 37.52% AAON, Inc. AAON $54.22 $72.33 33.41% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, TRGP has 37.52% upside from the recent share price of $64.96 if the average analyst target price of $89.33/share is reached, and analysts on average are expecting AAON to reach a target price of $72.33/share, which is 33.41% above the recent price of $54.22. Three of DON's underlying holdings with notable upside to their analyst target prices are eXp World Holdings Inc (Symbol: EXPI), Targa Resources Corp (Symbol: TRGP), and AAON, Inc. (Symbol: AAON). Below is a twelve month price history chart comparing the stock performance of EXPI, TRGP, and AAON: Below is a summary table of the current analyst target prices discussed above:
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WisdomTree U.S. MidCap Dividend Fund ETF DON $38.73 $47.42 22.44% eXp World Holdings Inc EXPI $11.33 $23.00 103.00% Targa Resources Corp TRGP $64.96 $89.33 37.52% AAON, Inc. AAON $54.22 $72.33 33.41% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DON's underlying holdings with notable upside to their analyst target prices are eXp World Holdings Inc (Symbol: EXPI), Targa Resources Corp (Symbol: TRGP), and AAON, Inc. (Symbol: AAON). Similarly, TRGP has 37.52% upside from the recent share price of $64.96 if the average analyst target price of $89.33/share is reached, and analysts on average are expecting AAON to reach a target price of $72.33/share, which is 33.41% above the recent price of $54.22.
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10405.0
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2022-10-13 00:00:00 UTC
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AAON (NASDAQ:AAON) sheds 4.7% this week, as yearly returns fall more in line with earnings growth
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AAON
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https://www.nasdaq.com/articles/aaon-nasdaq%3Aaaon-sheds-4.7-this-week-as-yearly-returns-fall-more-in-line-with-earnings
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nan
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nan
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Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And in our experience, buying the right stocks can give your wealth a significant boost. To wit, the AAON share price has climbed 57% in five years, easily topping the market decline of 39% (ignoring dividends).
Since the long term performance has been good but there's been a recent pullback of 4.7%, let's check if the fundamentals match the share price.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, AAON achieved compound earnings per share (EPS) growth of 1.6% per year. This EPS growth is lower than the 9% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 51.13.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
NasdaqGS:AAON Earnings Per Share Growth October 13th 2022
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on AAON's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for AAON the TSR over the last 5 years was 62%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
While it's certainly disappointing to see that AAON shares lost 20% throughout the year, that wasn't as bad as the market loss of 44%. Longer term investors wouldn't be so upset, since they would have made 10%, each year, over five years. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with AAON (including 1 which is a bit concerning) .
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NasdaqGS:AAON Earnings Per Share Growth October 13th 2022 It's probably worth noting that the CEO is paid less than the median at similar sized companies. To wit, the AAON share price has climbed 57% in five years, easily topping the market decline of 39% (ignoring dividends). During five years of share price growth, AAON achieved compound earnings per share (EPS) growth of 1.6% per year.
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During five years of share price growth, AAON achieved compound earnings per share (EPS) growth of 1.6% per year. NasdaqGS:AAON Earnings Per Share Growth October 13th 2022 It's probably worth noting that the CEO is paid less than the median at similar sized companies. To wit, the AAON share price has climbed 57% in five years, easily topping the market decline of 39% (ignoring dividends).
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During five years of share price growth, AAON achieved compound earnings per share (EPS) growth of 1.6% per year. We note that for AAON the TSR over the last 5 years was 62%, which is better than the share price return mentioned above. To wit, the AAON share price has climbed 57% in five years, easily topping the market decline of 39% (ignoring dividends).
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During five years of share price growth, AAON achieved compound earnings per share (EPS) growth of 1.6% per year. We note that for AAON the TSR over the last 5 years was 62%, which is better than the share price return mentioned above. To wit, the AAON share price has climbed 57% in five years, easily topping the market decline of 39% (ignoring dividends).
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10406.0
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2022-09-14 00:00:00 UTC
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Analysts Anticipate IJS To Hit $112
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AAON
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https://www.nasdaq.com/articles/analysts-anticipate-ijs-to-hit-%24112
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares S&P Small-Cap 600 Value ETF (Symbol: IJS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $112.05 per unit.
With IJS trading at a recent price near $90.88 per unit, that means that analysts see 23.30% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IJS's underlying holdings with notable upside to their analyst target prices are Evertec, Inc. (Symbol: EVTC), AAON, Inc. (Symbol: AAON), and PDF Solutions Inc. (Symbol: PDFS). Although EVTC has traded at a recent price of $34.03/share, the average analyst target is 26.36% higher at $43.00/share. Similarly, AAON has 25.76% upside from the recent share price of $57.25 if the average analyst target price of $72.00/share is reached, and analysts on average are expecting PDFS to reach a target price of $31.67/share, which is 25.56% above the recent price of $25.22. Below is a twelve month price history chart comparing the stock performance of EVTC, AAON, and PDFS:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares S&P Small-Cap 600 Value ETF IJS $90.88 $112.05 23.30%
Evertec, Inc. EVTC $34.03 $43.00 26.36%
AAON, Inc. AAON $57.25 $72.00 25.76%
PDF Solutions Inc. PDFS $25.22 $31.67 25.56%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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iShares S&P Small-Cap 600 Value ETF IJS $90.88 $112.05 23.30% Evertec, Inc. EVTC $34.03 $43.00 26.36% AAON, Inc. AAON $57.25 $72.00 25.76% PDF Solutions Inc. PDFS $25.22 $31.67 25.56% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IJS's underlying holdings with notable upside to their analyst target prices are Evertec, Inc. (Symbol: EVTC), AAON, Inc. (Symbol: AAON), and PDF Solutions Inc. (Symbol: PDFS). Similarly, AAON has 25.76% upside from the recent share price of $57.25 if the average analyst target price of $72.00/share is reached, and analysts on average are expecting PDFS to reach a target price of $31.67/share, which is 25.56% above the recent price of $25.22.
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Three of IJS's underlying holdings with notable upside to their analyst target prices are Evertec, Inc. (Symbol: EVTC), AAON, Inc. (Symbol: AAON), and PDF Solutions Inc. (Symbol: PDFS). Similarly, AAON has 25.76% upside from the recent share price of $57.25 if the average analyst target price of $72.00/share is reached, and analysts on average are expecting PDFS to reach a target price of $31.67/share, which is 25.56% above the recent price of $25.22. iShares S&P Small-Cap 600 Value ETF IJS $90.88 $112.05 23.30% Evertec, Inc. EVTC $34.03 $43.00 26.36% AAON, Inc. AAON $57.25 $72.00 25.76% PDF Solutions Inc. PDFS $25.22 $31.67 25.56% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAON has 25.76% upside from the recent share price of $57.25 if the average analyst target price of $72.00/share is reached, and analysts on average are expecting PDFS to reach a target price of $31.67/share, which is 25.56% above the recent price of $25.22. Three of IJS's underlying holdings with notable upside to their analyst target prices are Evertec, Inc. (Symbol: EVTC), AAON, Inc. (Symbol: AAON), and PDF Solutions Inc. (Symbol: PDFS). Below is a twelve month price history chart comparing the stock performance of EVTC, AAON, and PDFS: Below is a summary table of the current analyst target prices discussed above:
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iShares S&P Small-Cap 600 Value ETF IJS $90.88 $112.05 23.30% Evertec, Inc. EVTC $34.03 $43.00 26.36% AAON, Inc. AAON $57.25 $72.00 25.76% PDF Solutions Inc. PDFS $25.22 $31.67 25.56% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IJS's underlying holdings with notable upside to their analyst target prices are Evertec, Inc. (Symbol: EVTC), AAON, Inc. (Symbol: AAON), and PDF Solutions Inc. (Symbol: PDFS). Similarly, AAON has 25.76% upside from the recent share price of $57.25 if the average analyst target price of $72.00/share is reached, and analysts on average are expecting PDFS to reach a target price of $31.67/share, which is 25.56% above the recent price of $25.22.
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10407.0
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2022-09-13 00:00:00 UTC
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AAON (NASDAQ:AAON) Has A Pretty Healthy Balance Sheet
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AAON
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https://www.nasdaq.com/articles/aaon-nasdaq%3Aaaon-has-a-pretty-healthy-balance-sheet
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nan
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nan
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Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that AAON, Inc. (NASDAQ:AAON) does use debt in its business. But should shareholders be worried about its use of debt?
What Risk Does Debt Bring?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
What Is AAON's Debt?
As you can see below, at the end of June 2022, AAON had US$106.2m of debt, up from none a year ago. Click the image for more detail. On the flip side, it has US$17.6m in cash leading to net debt of about US$88.6m.
NasdaqGS:AAON Debt to Equity History September 13th 2022
How Healthy Is AAON's Balance Sheet?
According to the last reported balance sheet, AAON had liabilities of US$136.2m due within 12 months, and liabilities of US$150.0m due beyond 12 months. On the other hand, it had cash of US$17.6m and US$140.5m worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$128.0m.
Since publicly traded AAON shares are worth a total of US$3.15b, it seems unlikely that this level of liabilities would be a major threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
AAON has a low net debt to EBITDA ratio of only 0.87. And its EBIT covers its interest expense a whopping 80.1 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. It is just as well that AAON's load is not too heavy, because its EBIT was down 22% over the last year. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine AAON's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Looking at the most recent three years, AAON recorded free cash flow of 23% of its EBIT, which is weaker than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
Our View
Based on what we've seen AAON is not finding it easy, given its EBIT growth rate, but the other factors we considered give us cause to be optimistic. In particular, we are dazzled with its interest cover. When we consider all the factors mentioned above, we do feel a bit cautious about AAON's use of debt. While debt does have its upside in higher potential returns, we think shareholders should definitely consider how debt levels might make the stock more risky. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example, we've discovered 2 warning signs for AAON (1 can't be ignored!) that you should be aware of before investing here.
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We can see that AAON, Inc. (NASDAQ:AAON) does use debt in its business. What Is AAON's Debt? As you can see below, at the end of June 2022, AAON had US$106.2m of debt, up from none a year ago.
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According to the last reported balance sheet, AAON had liabilities of US$136.2m due within 12 months, and liabilities of US$150.0m due beyond 12 months. Looking at the most recent three years, AAON recorded free cash flow of 23% of its EBIT, which is weaker than we'd expect. We can see that AAON, Inc. (NASDAQ:AAON) does use debt in its business.
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NasdaqGS:AAON Debt to Equity History September 13th 2022 How Healthy Is AAON's Balance Sheet? We can see that AAON, Inc. (NASDAQ:AAON) does use debt in its business. What Is AAON's Debt?
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We can see that AAON, Inc. (NASDAQ:AAON) does use debt in its business. What Is AAON's Debt? As you can see below, at the end of June 2022, AAON had US$106.2m of debt, up from none a year ago.
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10408.0
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2022-08-31 00:00:00 UTC
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3 Air Conditioner & Heating Stocks to Watch Amid Industry Headwinds
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AAON
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https://www.nasdaq.com/articles/3-air-conditioner-heating-stocks-to-watch-amid-industry-headwinds
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nan
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nan
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The Zacks Building Products - Air Conditioner & Heating industry has been grappling with supply-chain disruptions and inflationary pressures. Nonetheless, industry players like Watsco, Inc. WSO, Comfort Systems USA, Inc. FIX and AAON, Inc. AAON have been leveraging from maintaining, monitoring and repairing services along with prudent cost-management practices. Also, the replacement of older systems to reduce electricity consumption and carbon footprint, as well as planned investments in technologies to capture more growth, is acting as a major tailwind for the industry participants.
Industry Description
The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning) as well as residential new construction markets.
3 Trends Shaping the Future of Air Conditioner & Heating Industry
Supply-Chain Woes, Rising Costs, Regulations: Supply-chain disruptions and rising raw material costs have been hurting the profit margins of the industry participants. Supply-chain constraints remain a key issue, resulting in inefficiencies and larger inventory. Operating expenses of companies are rising thanks to pandemic-related business challenges and sharp rises in variable operating expenses, including company-wide, performance-based compensation, excessive logistics and freight costs. Meanwhile, the industry is also susceptible to stringent governmental regulations on energy efficiency and gas emissions. HVAC systems use refrigerants for cooling, which is harmful to humans and the environment. Also, stiff competition and the impact of seasonality on the industry’s revenues are significant risks.
Biden’s Pro-Environmental Moves: Reducing greenhouse gas emissions for a cleaner environmental footprint has been a major focus of the U.S. administration. Many industry participants remain engaged in supporting industries and facilities by selling and maintaining clean and efficient energy systems to reach their environmental goals for carbon reduction, while providing resiliency to grid outages. The companies are also gaining from the fast-growing controlled environment agriculture industry, courtesy of their consistent supply of clean cooling solutions. Overall, the companies are well positioned to gain from the renewable energy drive of the pro-environmental Biden administration. Meanwhile, the companies have also been benefiting from an improvement in the non-residential market along with a rise in repair and remodeling activities.
Technology Augmentation & Inorganic Moves: Persistent investments in technologies designed to revolutionize customer experience seem to be vital for the industry. Digitization of the companies’ marketplace via e-commerce and iOS/Android-enabled apps, supported by a comprehensive database of product information, continues to see strong momentum. Importantly, new investments for the expansion of distribution footprint, research and development projects as well as marketing programs are contributing significantly to the companies’ top lines. The companies are also actively pursuing accretive acquisitions to broaden their product portfolio and expand their geographic footprint as well as market share. Meanwhile, services associated with maintaining, monitoring and repairing the existing equipment are also providing the industry participants with stable revenue sources. The industry generates a major share of revenues from these services, which consumers generally cannot suspend even when the construction market fluctuates.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Building Products - Air Conditioner & Heating industry is a six-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #162, which places it in the bottom 36% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of tepid earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since May 2022, the industry’s earnings estimates for 2022 have decreased 3.6%.
Despite the industry’s blurred near-term view, we will discuss a few stocks that one may consider adding to the portfolio. Before that, it’s worth taking a look at the industry’s shareholder returns and current valuation.
Industry Outperforms S&P 500, Sector
The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector and Zacks S&P 500 composite over the past year.
Over this period, the industry has lost 12% versus the broader sector’s 17.8% decline. Meanwhile, the Zacks S&P 500 composite has slipped 12.3% during the period.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 23.9X versus the S&P 500’s 17.4X and the sector’s 11.5X.
Over the past five years, the industry has traded as high as 39.9X, as low as 19.4X and at a median of 24.6X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
3 Air Conditioner and Heating Stocks to Watch
Below, we have discussed three stocks from the Zacks Air Conditioner & Heating universe that have solid growth potential. The chosen companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comfort Systems USA.: Based in Houston, TX, this company is a national provider of comprehensive heating, ventilation, and air conditioning installation along with maintenance, repair, and replacement services. A solid backlog level and substantial ongoing investments in training, productivity, and technology are expected to drive growth. Overall positive trends — primarily in industrial, technology, and manufacturing markets served by the company — as well as accretive buyouts are encouraging. The acquisitions have enhanced its scale, increased recurring service revenues, and lifted expertise in complex markets, including industrial, technology and life sciences.
Comfort Systems, which currently carries a Zacks Rank #3, has gained 33.5% over the past year. The company is expected to witness 23.4% earnings growth in 2022 and 21.9% in 2023.
Price and Consensus: FIX
AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures and markets air conditioning as well as heating equipment. The company maintains a balance between new construction and replacement applications and is making the most of robust replacement demand, broadly across the non-residential building market. Despite inflationary cost pressures, the BasX acquisition, which was closed in December 2021, has been delivering solid results for AAON. While supply-chain issues and inflation caused similar issues, BasX has been flexible in adapting to challenges.
AAON, which currently carries a Zacks Rank #3, has lost 14.3% over the past year. Earnings are expected to grow 37.9% in 2022 and 59.4% in 2023.
Price and Consensus: AAON
Watsco: Headquartered in Miami, FL, Watsco distributes air conditioning, heating, and refrigeration equipment along with related parts in the United States, Canada, Mexico and Puerto Rico. The company has been benefiting from an improvement in the e-commerce business, strong performance across geographies and product categories backed by solid unit growth, higher selling prices, a richer mix of high-efficiency systems, and technology-driven gains in market share. Also, increased focus on accretive acquisitions and enhancing shareholder value bodes well.
This Zacks Rank #3 company’s earnings are expected to grow 34.8% in 2022. WSO has lost 1.1% over the past year. Yet, Watsco has seen an upward estimate revision of 0.5% for the 2022 bottom line over the past 60 days.
Price and Consensus: WSO
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Watsco, Inc. (WSO): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FIX and AAON, Inc. AAON have been leveraging from maintaining, monitoring and repairing services along with prudent cost-management practices. Price and Consensus: FIX AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures and markets air conditioning as well as heating equipment. Despite inflationary cost pressures, the BasX acquisition, which was closed in December 2021, has been delivering solid results for AAON.
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FIX and AAON, Inc. AAON have been leveraging from maintaining, monitoring and repairing services along with prudent cost-management practices. Price and Consensus: FIX AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures and markets air conditioning as well as heating equipment. Despite inflationary cost pressures, the BasX acquisition, which was closed in December 2021, has been delivering solid results for AAON.
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FIX and AAON, Inc. AAON have been leveraging from maintaining, monitoring and repairing services along with prudent cost-management practices. Price and Consensus: FIX AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures and markets air conditioning as well as heating equipment. Despite inflationary cost pressures, the BasX acquisition, which was closed in December 2021, has been delivering solid results for AAON.
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FIX and AAON, Inc. AAON have been leveraging from maintaining, monitoring and repairing services along with prudent cost-management practices. Price and Consensus: FIX AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures and markets air conditioning as well as heating equipment. Despite inflationary cost pressures, the BasX acquisition, which was closed in December 2021, has been delivering solid results for AAON.
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10409.0
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2022-08-18 00:00:00 UTC
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A Look At The Intrinsic Value Of AAON, Inc. (NASDAQ:AAON)
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AAON
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https://www.nasdaq.com/articles/a-look-at-the-intrinsic-value-of-aaon-inc.-nasdaq%3Aaaon
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nan
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nan
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AAON, Inc. (NASDAQ:AAON) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
Step By Step Through The Calculation
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
10-year free cash flow (FCF) estimate
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Levered FCF ($, Millions) US$87.4m US$101.9m US$114.2m US$124.6m US$133.2m US$140.4m US$146.6m US$152.0m US$156.7m US$161.1m
Growth Rate Estimate Source Analyst x1 Est @ 16.49% Est @ 12.13% Est @ 9.07% Est @ 6.93% Est @ 5.43% Est @ 4.39% Est @ 3.65% Est @ 3.14% Est @ 2.78%
Present Value ($, Millions) Discounted @ 6.6% US$82.1 US$89.7 US$94.4 US$96.6 US$97.0 US$96.0 US$94.0 US$91.4 US$88.5 US$85.4
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$915m
After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.9%. We discount the terminal cash flows to today's value at a cost of equity of 6.6%.
Terminal Value (TV)= FCF2032 × (1 + g) ÷ (r – g) = US$161m× (1 + 1.9%) ÷ (6.6%– 1.9%) = US$3.6b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$3.6b÷ ( 1 + 6.6%)10= US$1.9b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$2.8b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$62.9, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
NasdaqGS:AAON Discounted Cash Flow August 18th 2022
The Assumptions
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at AAON as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.6%, which is based on a levered beta of 1.088. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Looking Ahead:
Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For AAON, we've put together three important factors you should consider:
Risks: You should be aware of the 3 warning signs for AAON (1 can't be ignored!) we've uncovered before considering an investment in the company.
Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AAON's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AAON's future outlook? Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AAON, Inc. (NASDAQ:AAON) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. NasdaqGS:AAON Discounted Cash Flow August 18th 2022 The Assumptions The calculation above is very dependent on two assumptions.
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AAON, Inc. (NASDAQ:AAON) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. NasdaqGS:AAON Discounted Cash Flow August 18th 2022 The Assumptions The calculation above is very dependent on two assumptions. Given that we are looking at AAON as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AAON, Inc. (NASDAQ:AAON) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. NasdaqGS:AAON Discounted Cash Flow August 18th 2022 The Assumptions The calculation above is very dependent on two assumptions. Given that we are looking at AAON as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AAON, Inc. (NASDAQ:AAON) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. NasdaqGS:AAON Discounted Cash Flow August 18th 2022 The Assumptions The calculation above is very dependent on two assumptions. Given that we are looking at AAON as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.
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10410.0
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2022-08-10 00:00:00 UTC
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Peek Under The Hood: DGRW Has 12% Upside
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AAON
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https://www.nasdaq.com/articles/peek-under-the-hood%3A-dgrw-has-12-upside
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. Quality Dividend Growth Fund ETF (Symbol: DGRW), we found that the implied analyst target price for the ETF based upon its underlying holdings is $67.99 per unit.
With DGRW trading at a recent price near $60.70 per unit, that means that analysts see 12.00% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DGRW's underlying holdings with notable upside to their analyst target prices are AAON, Inc. (Symbol: AAON), Sysco Corp (Symbol: SYY), and BWX Technologies inc (Symbol: BWXT). Although AAON has traded at a recent price of $59.84/share, the average analyst target is 18.65% higher at $71.00/share. Similarly, SYY has 15.20% upside from the recent share price of $82.34 if the average analyst target price of $94.86/share is reached, and analysts on average are expecting BWXT to reach a target price of $63.25/share, which is 13.70% above the recent price of $55.63. Below is a twelve month price history chart comparing the stock performance of AAON, SYY, and BWXT:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $60.70 $67.99 12.00%
AAON, Inc. AAON $59.84 $71.00 18.65%
Sysco Corp SYY $82.34 $94.86 15.20%
BWX Technologies inc BWXT $55.63 $63.25 13.70%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although AAON has traded at a recent price of $59.84/share, the average analyst target is 18.65% higher at $71.00/share. WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $60.70 $67.99 12.00% AAON, Inc. AAON $59.84 $71.00 18.65% Sysco Corp SYY $82.34 $94.86 15.20% BWX Technologies inc BWXT $55.63 $63.25 13.70% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DGRW's underlying holdings with notable upside to their analyst target prices are AAON, Inc. (Symbol: AAON), Sysco Corp (Symbol: SYY), and BWX Technologies inc (Symbol: BWXT).
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Three of DGRW's underlying holdings with notable upside to their analyst target prices are AAON, Inc. (Symbol: AAON), Sysco Corp (Symbol: SYY), and BWX Technologies inc (Symbol: BWXT). WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $60.70 $67.99 12.00% AAON, Inc. AAON $59.84 $71.00 18.65% Sysco Corp SYY $82.34 $94.86 15.20% BWX Technologies inc BWXT $55.63 $63.25 13.70% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAON has traded at a recent price of $59.84/share, the average analyst target is 18.65% higher at $71.00/share.
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Three of DGRW's underlying holdings with notable upside to their analyst target prices are AAON, Inc. (Symbol: AAON), Sysco Corp (Symbol: SYY), and BWX Technologies inc (Symbol: BWXT). Although AAON has traded at a recent price of $59.84/share, the average analyst target is 18.65% higher at $71.00/share. Below is a twelve month price history chart comparing the stock performance of AAON, SYY, and BWXT: Below is a summary table of the current analyst target prices discussed above:
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Although AAON has traded at a recent price of $59.84/share, the average analyst target is 18.65% higher at $71.00/share. WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $60.70 $67.99 12.00% AAON, Inc. AAON $59.84 $71.00 18.65% Sysco Corp SYY $82.34 $94.86 15.20% BWX Technologies inc BWXT $55.63 $63.25 13.70% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DGRW's underlying holdings with notable upside to their analyst target prices are AAON, Inc. (Symbol: AAON), Sysco Corp (Symbol: SYY), and BWX Technologies inc (Symbol: BWXT).
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10411.0
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2022-07-21 00:00:00 UTC
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Returns On Capital Signal Tricky Times Ahead For AAON (NASDAQ:AAON)
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AAON
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https://www.nasdaq.com/articles/returns-on-capital-signal-tricky-times-ahead-for-aaon-nasdaq%3Aaaon
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nan
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nan
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What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don't think AAON (NASDAQ:AAON) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
Return On Capital Employed (ROCE): What is it?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on AAON is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.12 = US$75m ÷ (US$717m - US$114m) (Based on the trailing twelve months to March 2022).
Therefore, AAON has an ROCE of 12%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Building industry average of 13%.
NasdaqGS:AAON Return on Capital Employed July 21st 2022
Above you can see how the current ROCE for AAON compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
What Can We Tell From AAON's ROCE Trend?
On the surface, the trend of ROCE at AAON doesn't inspire confidence. Around five years ago the returns on capital were 35%, but since then they've fallen to 12%. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
What We Can Learn From AAON's ROCE
In summary, despite lower returns in the short term, we're encouraged to see that AAON is reinvesting for growth and has higher sales as a result. And the stock has followed suit returning a meaningful 67% to shareholders over the last five years. So should these growth trends continue, we'd be optimistic on the stock going forward.
On a final note, we found 3 warning signs for AAON (1 is concerning) you should be aware of.
While AAON may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The formula for this calculation on AAON is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$75m ÷ (US$717m - US$114m) (Based on the trailing twelve months to March 2022). However, after briefly looking over the numbers, we don't think AAON (NASDAQ:AAON) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Therefore, AAON has an ROCE of 12%.
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The formula for this calculation on AAON is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$75m ÷ (US$717m - US$114m) (Based on the trailing twelve months to March 2022). While AAON may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. However, after briefly looking over the numbers, we don't think AAON (NASDAQ:AAON) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
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NasdaqGS:AAON Return on Capital Employed July 21st 2022 Above you can see how the current ROCE for AAON compares to its prior returns on capital, but there's only so much you can tell from the past. What We Can Learn From AAON's ROCE In summary, despite lower returns in the short term, we're encouraged to see that AAON is reinvesting for growth and has higher sales as a result. However, after briefly looking over the numbers, we don't think AAON (NASDAQ:AAON) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
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Therefore, AAON has an ROCE of 12%. What Can We Tell From AAON's ROCE Trend? However, after briefly looking over the numbers, we don't think AAON (NASDAQ:AAON) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
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10412.0
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2022-06-30 00:00:00 UTC
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Aaon (AAON) Upgraded to Strong Buy: Here's Why
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AAON
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https://www.nasdaq.com/articles/aaon-aaon-upgraded-to-strong-buy%3A-heres-why
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nan
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nan
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Aaon (AAON) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Aaon is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Aaon, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Aaon
For the fiscal year ending December 2022, this maker of air conditioning and heating equipment is expected to earn $1.79 per share, which is a change of 54.3% from the year-ago reported number.
Analysts have been steadily raising their estimates for Aaon. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.5%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Aaon to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaon (AAON) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). As such, the Zacks rating upgrade for Aaon is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. For Aaon, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business.
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Aaon (AAON) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). As such, the Zacks rating upgrade for Aaon is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. For Aaon, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business.
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You can learn more about the Zacks Rank here >>> The upgrade of Aaon to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. Aaon (AAON) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). As such, the Zacks rating upgrade for Aaon is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
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Aaon (AAON) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). You can learn more about the Zacks Rank here >>> The upgrade of Aaon to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. As such, the Zacks rating upgrade for Aaon is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
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10413.0
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2022-06-30 00:00:00 UTC
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New Strong Buy Stocks for June 30th
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AAON
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https://www.nasdaq.com/articles/new-strong-buy-stocks-for-june-30th
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nan
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nan
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Banner Corporation BANR: This bank holding company for Banner Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
Banner Corporation Price and Consensus
Banner Corporation price-consensus-chart | Banner Corporation Quote
Mid Penn Bancorp, Inc. MPB: This bank holding company for Mid Penn Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 4.6% over the last 60 days.
Mid Penn Bancorp Price and Consensus
Mid Penn Bancorp price-consensus-chart | Mid Penn Bancorp Quote
Unity Bancorp, Inc. UNTY: This holding company for Unity Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 1.7% over the last 60 days.
Unity Bancorp, Inc. Price and Consensus
Unity Bancorp, Inc. price-consensus-chart | Unity Bancorp, Inc. Quote
AAON, Inc. AAON: This air-conditioning and heating company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days.
AAON, Inc. Price and Consensus
AAON, Inc. price-consensus-chart | AAON, Inc. Quote
TransAlta Corporation TAC: This operator of a diverse fleet of electrical power generation assets has seen the Zacks Consensus Estimate for its current year earnings increasing nearly 73% over the last 60 days.
TransAlta Corporation Price and Consensus
TransAlta Corporation price-consensus-chart | TransAlta Corporation Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TransAlta Corporation (TAC): Free Stock Analysis Report
Banner Corporation (BANR): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
Unity Bancorp, Inc. (UNTY): Free Stock Analysis Report
Mid Penn Bancorp (MPB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unity Bancorp, Inc. Price and Consensus Unity Bancorp, Inc. price-consensus-chart | Unity Bancorp, Inc. Quote AAON, Inc. AAON: This air-conditioning and heating company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote TransAlta Corporation TAC: This operator of a diverse fleet of electrical power generation assets has seen the Zacks Consensus Estimate for its current year earnings increasing nearly 73% over the last 60 days. AAON, Inc. (AAON): Free Stock Analysis Report
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Unity Bancorp, Inc. Price and Consensus Unity Bancorp, Inc. price-consensus-chart | Unity Bancorp, Inc. Quote AAON, Inc. AAON: This air-conditioning and heating company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote TransAlta Corporation TAC: This operator of a diverse fleet of electrical power generation assets has seen the Zacks Consensus Estimate for its current year earnings increasing nearly 73% over the last 60 days. AAON, Inc. (AAON): Free Stock Analysis Report
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Unity Bancorp, Inc. Price and Consensus Unity Bancorp, Inc. price-consensus-chart | Unity Bancorp, Inc. Quote AAON, Inc. AAON: This air-conditioning and heating company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote TransAlta Corporation TAC: This operator of a diverse fleet of electrical power generation assets has seen the Zacks Consensus Estimate for its current year earnings increasing nearly 73% over the last 60 days. AAON, Inc. (AAON): Free Stock Analysis Report
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Unity Bancorp, Inc. Price and Consensus Unity Bancorp, Inc. price-consensus-chart | Unity Bancorp, Inc. Quote AAON, Inc. AAON: This air-conditioning and heating company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote TransAlta Corporation TAC: This operator of a diverse fleet of electrical power generation assets has seen the Zacks Consensus Estimate for its current year earnings increasing nearly 73% over the last 60 days. AAON, Inc. (AAON): Free Stock Analysis Report
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10414.0
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2022-05-13 00:00:00 UTC
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Analysts See an ‘Attractive Entry Point’ in These 3 Stocks
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AAON
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https://www.nasdaq.com/articles/analysts-see-an-attractive-entry-point-in-these-3-stocks
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nan
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nan
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The stock market presents a somewhat confusing picture for now. The main indexes are all steeply down for the year so far – with losses of 16% on the S&P 500 and 25% on the NASDAQ. Drops of this magnitude come with a caveat, however: it’s inevitable that some fundamentally sound stocks are seeing drops in share price just due to the overall market’s downward trend.
Indeed, Wall Street’s analysts are seeing plenty, in their words, attractive entry points -- beaten-down stocks that are primed for gains despite the challenging market environment. We’ve used the TipRanks database to pull up the details on three such stocks. Let's dive in.
Varonis Systems (VRNS)
We’ll start in the cybersecurity sector, with Varonis Systems. The company provides automated data protection, an essential service in the modern digital economy. Varonis’ products promote detection and defeat of online threats like ransomware, while also tracking digital behavior and abnormal user activity to identify potential cyberattacks.
In the recently reported 1Q22, Varonis showed powerful growth in multiple key metrics. These included 29% year-over-year revenue growth, 32% annualized recurring revenue growth, and 53% growth in subscription revenue. The company’s top line came in at $96.3 million. Varonis managed these increases in what is, historically, its lowest-performing calendar quarter; the company typically sees revenues and other metrics start low in Q1 and increase to the end of the calendar year.
While the Q1 report was generally good, the quarterly net loss, of 9 cents per share, beat the forecast of 10 cents – but was deeper than the year-ago EPS loss of 8 cents. In addition, while management’s revenue guidance for 2022 represents a 25% increase at the midpoint, the low end is still below expectations, raising the possibility that the company could underperform.
Investors should note that Varonis shares are down 57% from the peak they hit in September last year. At least one analyst, however, believes that now is the time to buy the dip.
Andrew Nowinski, 5-star analyst from Wells Fargo, rates VRNS an Overweight (i.e. Buy), while his $60 price target indicates room for 88.5% upside by this time next year. (To watch Nowinski’s track record, click here)
"[Varonis'] pullback creates attractive entry point in light of improving demand trends... Over the last 6 months, shares of VRNS have declined significantly more than the NASDAQ. During this period, the EV/CY23E Sales multiple has declined from 12x to 7.9x (based on consensus estimates), and shares now trading below the peer group average (7.9x vs. 8.6x for the peer group). From a revenue growth perspective, the peer group average is only 23% in CY23, though we believe Varonis has the potential to continue growing revenue in the 30% range, which would be a premium to the peer group average," Nowinski opined.
Tech firms like Varonis tend to pick up plenty of analyst attention, and this company has 14 recent analyst reviews. These include 12 Buys and only 2 Holds, for a Strong Buy consensus rating. Meanwhile, the average price target of $56.43 implies an upside of ~77% from the current share price of $31.83. (See Varonis stock forecast on TipRanks)
Aaon, Inc. (AAON)
For the second stock on our list, we’ll move over to HVAC. Aaon designs, produces, and markets a range of equipment for indoor climate control and ventilation, including air handlers, chillers, condensers, heat pumps, and control units. The company markets to both commercial scale and residential customers, and is based in Tulsa, Oklahoma.
So far this year, Aaon’s shares are down 32%, even as company revenues are growing year-over-year. In 1Q22, the company had a top line of $182.8 million, up a robust 57% from the year-ago quarter. The work backlog in Q1 came to $461.4 million, a company record – and up by 377% from 1Q21.
All of this indicates a company that is seeing increasing and accelerating growth, a story that caught the attention of D.A. Davidson's 5-star analyst Brent Thielman.
“Margins were near our expectations and up considerably from 4Q (suggesting AAON is managing today's supply/inflation challenges more effectively); while the bigger story is massive growth and order activity fueling a significant build in backlog. These order trends don't appear to be abating. While we've historically yielded to valuation, the recent pullback coupled with what looks to be solid double-digit growth in 2022/2023 lends a more attractive entry point,” Thielman noted.
These comments support Thielman’s Buy rating on AAON shares, and his $70 price target suggests that the stock has an upside potential of ~30% over the next 12 months. (To watch Thielman’s track record, click here)
Blue collar industrials don't hold the same cachet as high techs, and Aaon only has two recent analyst reviews. Both are positive, however, making the Moderate Buy consensus rating unanimous. The shares are trading for $54 and their $71 average target implies a one-year upside of 32% from current levels. (See AAON stock forecast on TipRanks)
Praxis Precision Medicines (PRAX)
Last but not least is Praxis Precision Medicines, a clinical-stage biopharmaceutic firm developing new treatments for central nervous system disorders. These are a serious class of diseases, causing everything from anxiety and depression to ongoing seizures; Praxis is working on novel treatments, approaching them through genetic research.
The company currently has several ongoing clinical trial programs, a highly desirable position for a biopharma to hold. The most advanced drug candidate is PRAX-114, a potential treatment for both major depressive disorder (MDD) and post-traumatic stress disorder (PTSD). Praxis expects to release data from two clinical trials of PRAX-114 on MDD later this year – the Aria study, a Phase 2/3 placebo controlled monotherapy trial, should show topline results in June, while the Acapella Phase 2 dose-ranging study is expected to release results in 3Q22. Praxis anticipates initiating a Phase 3 study of this drug candidate against MDD sometime during Q4 of this year.
On the PTSD side, PRAX-114 is undergoing a Phase 2 safety, tolerability, and efficacy trial. The company expects to make results available during 2H22.
Praxis has another major research program at the Phase 2 level – PRAX-944 is a drug candidate designed to treat essential tremors. In data released earlier this month, Praxis announced that the drug candidate had demonstrated clinically significant effect in functional improvement of patients with essential tremor. The results came from Part B of a Phase 2a study. The Phase 2b dose ranging study, with 112 patients, is ongoing.
Finally, Praxis has an ongoing program in the treatment of epilepsy. The leading candidate here, PRAX-562, is scheduled to begin a Phase 2 trial in 2H22, and the preclinical drug candidate PRAX-628 will begin Phase 1 testing before the end of this year.
Like many clinical-stage biopharma companies, Praxis’ shares are highly volatile; the company’s stock is down 48% so far this year. However, Wedbush analyst Laura believes PRAX is a solid risk-reward proposition at current levels.
Chico notes the multiplicity of research tracks as a positive for investors to consider, but points out PRAX-114 as the key factor going forward.
“We continue to see PRAX holding a unique collection of wholly-owned assets. Further execution on certain proof-of-concept studies such as PRAX-114 in ET can only help to broaden the optionality. With the equity markets in disarray, we do detect hesitancy into the upcoming ARIA readout, in part due to earlier data points from SAGE’s zuranolone in major depressive disorder," Chico noted.
"For our part, we see distinctions on both the molecules themselves, as well as in the clinical trial design features across the programs. Additionally, with management’s commentary indicating ARIA recruitment demographics appear to be tying with their prior expectations, we think this is a positive signal. Simply put, we see current levels offering an attractive entry point,” the analyst added.
To this end, Chico sets an Outperform (i.e. Buy) rating on PRAX shares, and her price target, of $34, indicates her belief in a 233% one-year upside potential (To watch Chico’s track record, click here)
Overall, all three of the recent analyst reviews on Praxis are positive, for a unanimous Strong Buy consensus rating. The stock’s average price target of $56.50 implies a powerful 454% upside from the current share price of $10.19. (See PRAX stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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“Margins were near our expectations and up considerably from 4Q (suggesting AAON is managing today's supply/inflation challenges more effectively); while the bigger story is massive growth and order activity fueling a significant build in backlog. (See Varonis stock forecast on TipRanks) Aaon, Inc. (AAON) For the second stock on our list, we’ll move over to HVAC. Aaon designs, produces, and markets a range of equipment for indoor climate control and ventilation, including air handlers, chillers, condensers, heat pumps, and control units.
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(See Varonis stock forecast on TipRanks) Aaon, Inc. (AAON) For the second stock on our list, we’ll move over to HVAC. Aaon designs, produces, and markets a range of equipment for indoor climate control and ventilation, including air handlers, chillers, condensers, heat pumps, and control units. So far this year, Aaon’s shares are down 32%, even as company revenues are growing year-over-year.
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(See Varonis stock forecast on TipRanks) Aaon, Inc. (AAON) For the second stock on our list, we’ll move over to HVAC. Aaon designs, produces, and markets a range of equipment for indoor climate control and ventilation, including air handlers, chillers, condensers, heat pumps, and control units. So far this year, Aaon’s shares are down 32%, even as company revenues are growing year-over-year.
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These comments support Thielman’s Buy rating on AAON shares, and his $70 price target suggests that the stock has an upside potential of ~30% over the next 12 months. (See Varonis stock forecast on TipRanks) Aaon, Inc. (AAON) For the second stock on our list, we’ll move over to HVAC. Aaon designs, produces, and markets a range of equipment for indoor climate control and ventilation, including air handlers, chillers, condensers, heat pumps, and control units.
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10415.0
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2022-04-28 00:00:00 UTC
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4 Top Air Conditioner & Heating Stocks to Buy in a Prospering Industry
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AAON
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https://www.nasdaq.com/articles/4-top-air-conditioner-heating-stocks-to-buy-in-a-prospering-industry
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nan
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nan
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A major boost in residential and non-residential markets should continue to drive the Zacks Building Products - Air Conditioner & Heating industry. Additionally, maintaining, monitoring, and repairing services along with prudent cost-management practices — which have been leveraging technologies — should lend support to Watsco, Inc. WSO, Comfort Systems USA, Inc. FIX, AAON, Inc. AAON as well as Tecogen Inc. TGEN.
Industry Description
The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning) as well as residential new construction markets.
4 Trends Shaping the Future of Air Conditioner & Heating Industry
Solid Residential & Non-Residential Markets: The industry participants have been gaining strength from an uptick in demand. The strong momentum of the U.S. housing market, backed by the rising need for more work-at-home space, and solid recovery in the non-residential market have been benefiting the industry participants. Also, the industry stands to benefit from a substantial rise in repair and remodeling activities.
Biden’s Pro-Environmental Moves: Reducing greenhouse gas emissions for a cleaner environmental footprint has been a major focus of the U.S. administration. Many industry participants remain engaged in supporting industries and facilities by selling and maintaining clean and efficient energy systems to reach their environmental goals for carbon reduction, while providing resiliency to grid outages. The companies are also gaining from the fast-growing controlled environment agriculture industry, courtesy of their consistent supply of clean cooling solutions. Overall, the companies are well positioned to gain from the renewable energy drive of the pro-environmental Biden administration.
Technology Augmentation & Inorganic Moves: Persistent investments in technologies designed to revolutionize customer experience seem to be vital for the industry. Digitization of the companies’ marketplace via e-commerce and iOS/Android-enabled apps, supported by a comprehensive database of product information, continues to see strong momentum. Importantly, new investments for the expansion of distribution footprint, research and development projects as well as marketing programs are contributing significantly to the companies’ top lines. The companies are also actively pursuing accretive acquisitions to broaden their product portfolio and expand their geographic footprint as well as market share. Meanwhile, services associated with maintaining, monitoring and repairing the existing equipment are also providing the industry participants with a stable source of revenues. The industry generates a major share of revenues from these services, which consumers generally cannot suspend even when the construction market fluctuates.
Rising Costs, Tariffs, Competition: Rising raw material costs due to trade restrictions have been hurting profit margins to some extent. Also, stiff competition and the impact of seasonality on the industry’s revenues are significant risks. The industry is also susceptible to stringent governmental regulations on energy efficiency and gas emissions. HVAC systems use refrigerants for cooling, which is harmful to humans and the environment. Most importantly, supply chain disruptions due to the impact of the coronavirus pandemic across the United States are a major headwind.
Zacks Industry Rank Indicates Bullish Prospects
The Zacks Building Products - Air Conditioner & Heating industry is a six-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #27, which places it in the top 11% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since January 2022, the industry’s earnings estimates for 2022 have increased 9.6%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags S&P 500, Sector
The Zacks Air Conditioner & Heating industry has lagged the broader Zacks Construction sector and Zacks S&P 500 composite over the past year.
Over this period, the industry has lost 20.5% versus the broader sector’s 16.6% decline. Meanwhile, the Zacks S&P 500 composite has slipped 1.2% during the period.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 22.9X versus the S&P 500’s 17.9X and the sector’s 11.4X.
Over the past five years, the industry has traded as high as 39.9X, as low as 19.4X and at a median of 24.6X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
4 Air Conditioner and Heating Stocks to Buy
We have selected four stocks in the Zacks Air Conditioner & Heating universe that currently carry a Zacks Rank #2 (Buy) and have solid prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Watsco: Headquartered in Miami, FL, Watsco distributes air conditioning, heating, and refrigeration equipment along with related parts in the United States, Canada, Mexico and Puerto Rico. The company has been benefiting from an improvement in the e-commerce business, strong performance across geographies and product categories backed by solid unit growth, higher selling prices, a richer mix of high-efficiency systems, and technology-driven gains in market share. Also, increased focus on accretive acquisitions and enhancing shareholder value bodes well.
This Zacks Rank #2 company’s earnings are expected to grow 27% in 2022. WSO has lost 5.5% over the past year. Yet, Watsco has seen an upward estimate revision of 12.8% for the 2022 bottom line over the past 60 days.
Price and Consensus: WSO
Comfort Systems USA, Inc.: Based in Houston, TX, this company is a national provider of comprehensive heating, ventilation, and air conditioning installation along with maintenance, repair, and replacement services. A solid backlog level and substantial ongoing investments in training, productivity, and technology are expected to drive growth. Overall positive trends — primarily in industrial, technology, and manufacturing markets served by the company — as well as accretive buyouts are encouraging. The acquisitions have enhanced its scale, increased recurring service revenues, and lifted expertise in complex markets including industrial, technology and life sciences.
Comfort Systems, which currently carries a Zacks Rank #2, has gained 3.5% over the past year. The company is expected to witness 23.2% earnings growth in 2022. FIX has seen a 7.3% upward estimate revision for 2022 earnings over the past 60 days.
Price and Consensus: FIX
AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures, and markets air conditioning as well as heating equipment. The company maintains a balance between new construction and replacement applications and is making the most of robust replacement demand, broadly across the non-residential building market. Overall, higher revenues, improved productivity, lower SG&A expenses (as a percentage of sales) along with a lower tax rate bode well for AAON despite inflationary cost pressures.
AAON, which currently flaunts a Zacks Rank #2, has lost 27.5% over the past year. Yet, AAON has seen a 2.4% upward estimate revision for 2022 earnings over the past 60 days. Earnings are expected to grow 44.8% for 2022.
Price and Consensus: AAON
Tecogen: This Waltham, MA-based company is one of the leading manufacturers of clean energy products. Higher sales wing to the company’s strategic focus on key market segments such as controlled environment agriculture, healthcare and multifamily have been driving growth. TGEN’s chiller product, in particular, has seen significant penetration in the cannabis cultivation space. More than 45% of the company’s backlog is in this high-growth market.
TGEN, which currently flaunts a Zacks Rank #2, has lost 17.6% over the past year. Yet, TGEN has seen an upward estimate revision for 2022 earnings over the past 60 days.
Price and Consensus: TGEN
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Watsco, Inc. (WSO): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
Tecogen Inc. (TGEN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FIX, AAON, Inc. AAON as well as Tecogen Inc. TGEN. AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures, and markets air conditioning as well as heating equipment. Overall, higher revenues, improved productivity, lower SG&A expenses (as a percentage of sales) along with a lower tax rate bode well for AAON despite inflationary cost pressures.
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FIX, AAON, Inc. AAON as well as Tecogen Inc. TGEN. AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures, and markets air conditioning as well as heating equipment. Overall, higher revenues, improved productivity, lower SG&A expenses (as a percentage of sales) along with a lower tax rate bode well for AAON despite inflationary cost pressures.
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FIX, AAON, Inc. AAON as well as Tecogen Inc. TGEN. AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures, and markets air conditioning as well as heating equipment. Overall, higher revenues, improved productivity, lower SG&A expenses (as a percentage of sales) along with a lower tax rate bode well for AAON despite inflationary cost pressures.
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FIX, AAON, Inc. AAON as well as Tecogen Inc. TGEN. AAON, Inc.: Based in Tulsa, OK, AAON engineers, manufactures, and markets air conditioning as well as heating equipment. Overall, higher revenues, improved productivity, lower SG&A expenses (as a percentage of sales) along with a lower tax rate bode well for AAON despite inflationary cost pressures.
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10416.0
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2022-03-30 00:00:00 UTC
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Analysts Predict 21% Upside For The Holdings of PSCI
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AAON
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https://www.nasdaq.com/articles/analysts-predict-21-upside-for-the-holdings-of-psci
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P SmallCap Industrials ETF (Symbol: PSCI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $113.76 per unit.
With PSCI trading at a recent price near $94.19 per unit, that means that analysts see 20.78% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PSCI's underlying holdings with notable upside to their analyst target prices are Federal Signal Corp. (Symbol: FSS), AZZ Inc (Symbol: AZZ), and AAON, Inc. (Symbol: AAON). Although FSS has traded at a recent price of $34.75/share, the average analyst target is 29.50% higher at $45.00/share. Similarly, AZZ has 26.53% upside from the recent share price of $49.00 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting AAON to reach a target price of $70.00/share, which is 24.75% above the recent price of $56.11. Below is a twelve month price history chart comparing the stock performance of FSS, AZZ, and AAON:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco S&P SmallCap Industrials ETF PSCI $94.19 $113.76 20.78%
Federal Signal Corp. FSS $34.75 $45.00 29.50%
AZZ Inc AZZ $49.00 $62.00 26.53%
AAON, Inc. AAON $56.11 $70.00 24.75%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Invesco S&P SmallCap Industrials ETF PSCI $94.19 $113.76 20.78% Federal Signal Corp. FSS $34.75 $45.00 29.50% AZZ Inc AZZ $49.00 $62.00 26.53% AAON, Inc. AAON $56.11 $70.00 24.75% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PSCI's underlying holdings with notable upside to their analyst target prices are Federal Signal Corp. (Symbol: FSS), AZZ Inc (Symbol: AZZ), and AAON, Inc. (Symbol: AAON). Similarly, AZZ has 26.53% upside from the recent share price of $49.00 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting AAON to reach a target price of $70.00/share, which is 24.75% above the recent price of $56.11.
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Three of PSCI's underlying holdings with notable upside to their analyst target prices are Federal Signal Corp. (Symbol: FSS), AZZ Inc (Symbol: AZZ), and AAON, Inc. (Symbol: AAON). Similarly, AZZ has 26.53% upside from the recent share price of $49.00 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting AAON to reach a target price of $70.00/share, which is 24.75% above the recent price of $56.11. Invesco S&P SmallCap Industrials ETF PSCI $94.19 $113.76 20.78% Federal Signal Corp. FSS $34.75 $45.00 29.50% AZZ Inc AZZ $49.00 $62.00 26.53% AAON, Inc. AAON $56.11 $70.00 24.75% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AZZ has 26.53% upside from the recent share price of $49.00 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting AAON to reach a target price of $70.00/share, which is 24.75% above the recent price of $56.11. Three of PSCI's underlying holdings with notable upside to their analyst target prices are Federal Signal Corp. (Symbol: FSS), AZZ Inc (Symbol: AZZ), and AAON, Inc. (Symbol: AAON). Below is a twelve month price history chart comparing the stock performance of FSS, AZZ, and AAON: Below is a summary table of the current analyst target prices discussed above:
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Three of PSCI's underlying holdings with notable upside to their analyst target prices are Federal Signal Corp. (Symbol: FSS), AZZ Inc (Symbol: AZZ), and AAON, Inc. (Symbol: AAON). Similarly, AZZ has 26.53% upside from the recent share price of $49.00 if the average analyst target price of $62.00/share is reached, and analysts on average are expecting AAON to reach a target price of $70.00/share, which is 24.75% above the recent price of $56.11. Below is a twelve month price history chart comparing the stock performance of FSS, AZZ, and AAON: Below is a summary table of the current analyst target prices discussed above:
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10417.0
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2022-03-03 00:00:00 UTC
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Down 10.5% in 4 Weeks, Here's Why You Should You Buy the Dip in Aaon (AAON)
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AAON
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https://www.nasdaq.com/articles/down-10.5-in-4-weeks-heres-why-you-should-you-buy-the-dip-in-aaon-aaon
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nan
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nan
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Aaon (AAON) has been on a downward spiral lately with significant selling pressure. After declining 10.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
How to Determine if a Stock is Oversold
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why AAON Could Experience a Turnaround
The heavy selling of AAON shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.65. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for AAON has increased 2.4%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, AAON currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaon (AAON) has been on a downward spiral lately with significant selling pressure. Here's Why AAON Could Experience a Turnaround The heavy selling of AAON shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.65. Over the last 30 days, the consensus EPS estimate for AAON has increased 2.4%.
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AAON, Inc. (AAON): Free Stock Analysis Report Aaon (AAON) has been on a downward spiral lately with significant selling pressure. Here's Why AAON Could Experience a Turnaround The heavy selling of AAON shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.65.
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Moreover, AAON currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. Aaon (AAON) has been on a downward spiral lately with significant selling pressure. Here's Why AAON Could Experience a Turnaround The heavy selling of AAON shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.65.
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Here's Why AAON Could Experience a Turnaround The heavy selling of AAON shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.65. Aaon (AAON) has been on a downward spiral lately with significant selling pressure. Over the last 30 days, the consensus EPS estimate for AAON has increased 2.4%.
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10418.0
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2022-03-01 00:00:00 UTC
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Relative Strength Alert For AAON
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AAON
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https://www.nasdaq.com/articles/relative-strength-alert-for-aaon
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $54.74 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 40.2. A bullish investor could look at AAON's 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares:
Looking at the chart above, AAON's low point in its 52 week range is $54.74 per share, with $83.79 as the 52 week high point — that compares with a last trade of $56.99.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $54.74 per share. A bullish investor could look at AAON's 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $54.74 per share, with $83.79 as the 52 week high point — that compares with a last trade of $56.99.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $54.74 per share. A bullish investor could look at AAON's 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $54.74 per share, with $83.79 as the 52 week high point — that compares with a last trade of $56.99.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $54.74 per share. A bullish investor could look at AAON's 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $54.74 per share, with $83.79 as the 52 week high point — that compares with a last trade of $56.99.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $54.74 per share. A bullish investor could look at AAON's 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $54.74 per share, with $83.79 as the 52 week high point — that compares with a last trade of $56.99.
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10419.0
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2022-02-24 00:00:00 UTC
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Sum Up The Parts: DON Could Be Worth $50
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AAON
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https://www.nasdaq.com/articles/sum-up-the-parts%3A-don-could-be-worth-%2450
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. MidCap Dividend Fund ETF (Symbol: DON), we found that the implied analyst target price for the ETF based upon its underlying holdings is $50.40 per unit.
With DON trading at a recent price near $42.22 per unit, that means that analysts see 19.38% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DON's underlying holdings with notable upside to their analyst target prices are Acushnet Holdings Corp (Symbol: GOLF), AAON, Inc. (Symbol: AAON), and Crane Co. (Symbol: CR). Although GOLF has traded at a recent price of $41.92/share, the average analyst target is 39.38% higher at $58.43/share. Similarly, AAON has 23.61% upside from the recent share price of $56.63 if the average analyst target price of $70.00/share is reached, and analysts on average are expecting CR to reach a target price of $122.80/share, which is 23.54% above the recent price of $99.40. Below is a twelve month price history chart comparing the stock performance of GOLF, AAON, and CR:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
WisdomTree U.S. MidCap Dividend Fund ETF DON $42.22 $50.40 19.38%
Acushnet Holdings Corp GOLF $41.92 $58.43 39.38%
AAON, Inc. AAON $56.63 $70.00 23.61%
Crane Co. CR $99.40 $122.80 23.54%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WisdomTree U.S. MidCap Dividend Fund ETF DON $42.22 $50.40 19.38% Acushnet Holdings Corp GOLF $41.92 $58.43 39.38% AAON, Inc. AAON $56.63 $70.00 23.61% Crane Co. CR $99.40 $122.80 23.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DON's underlying holdings with notable upside to their analyst target prices are Acushnet Holdings Corp (Symbol: GOLF), AAON, Inc. (Symbol: AAON), and Crane Co. (Symbol: CR). Similarly, AAON has 23.61% upside from the recent share price of $56.63 if the average analyst target price of $70.00/share is reached, and analysts on average are expecting CR to reach a target price of $122.80/share, which is 23.54% above the recent price of $99.40.
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Three of DON's underlying holdings with notable upside to their analyst target prices are Acushnet Holdings Corp (Symbol: GOLF), AAON, Inc. (Symbol: AAON), and Crane Co. (Symbol: CR). Similarly, AAON has 23.61% upside from the recent share price of $56.63 if the average analyst target price of $70.00/share is reached, and analysts on average are expecting CR to reach a target price of $122.80/share, which is 23.54% above the recent price of $99.40. WisdomTree U.S. MidCap Dividend Fund ETF DON $42.22 $50.40 19.38% Acushnet Holdings Corp GOLF $41.92 $58.43 39.38% AAON, Inc. AAON $56.63 $70.00 23.61% Crane Co. CR $99.40 $122.80 23.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAON has 23.61% upside from the recent share price of $56.63 if the average analyst target price of $70.00/share is reached, and analysts on average are expecting CR to reach a target price of $122.80/share, which is 23.54% above the recent price of $99.40. Three of DON's underlying holdings with notable upside to their analyst target prices are Acushnet Holdings Corp (Symbol: GOLF), AAON, Inc. (Symbol: AAON), and Crane Co. (Symbol: CR). Below is a twelve month price history chart comparing the stock performance of GOLF, AAON, and CR: Below is a summary table of the current analyst target prices discussed above:
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WisdomTree U.S. MidCap Dividend Fund ETF DON $42.22 $50.40 19.38% Acushnet Holdings Corp GOLF $41.92 $58.43 39.38% AAON, Inc. AAON $56.63 $70.00 23.61% Crane Co. CR $99.40 $122.80 23.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DON's underlying holdings with notable upside to their analyst target prices are Acushnet Holdings Corp (Symbol: GOLF), AAON, Inc. (Symbol: AAON), and Crane Co. (Symbol: CR). Similarly, AAON has 23.61% upside from the recent share price of $56.63 if the average analyst target price of $70.00/share is reached, and analysts on average are expecting CR to reach a target price of $122.80/share, which is 23.54% above the recent price of $99.40.
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10420.0
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2022-02-09 00:00:00 UTC
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AAON Inc. Shares Approach 52-Week Low - Market Mover
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AAON
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https://www.nasdaq.com/articles/aaon-inc.-shares-approach-52-week-low-market-mover
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nan
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nan
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AAON Inc. (AAON) shares closed today at 1.2% above its 52 week low of $59.08, giving the company a market cap of $3B. The stock is currently down 25.4% year-to-date, down 23.3% over the past 12 months, and up 80.5% over the past five years. This week, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 fell 0.6%.
Trading Activity
Trading volume this week was 38.8% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9.
Technical Indicators
The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 141.4%
The company's stock price performance over the past 12 months lags the peer average by -150.0%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 97.1% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON Inc. (AAON) shares closed today at 1.2% above its 52 week low of $59.08, giving the company a market cap of $3B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 141.4% The company's stock price performance over the past 12 months lags the peer average by -150.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 97.1% higher than the average peer.
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AAON Inc. (AAON) shares closed today at 1.2% above its 52 week low of $59.08, giving the company a market cap of $3B. This week, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 fell 0.6%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 141.4% The company's stock price performance over the past 12 months lags the peer average by -150.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 97.1% higher than the average peer.
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AAON Inc. (AAON) shares closed today at 1.2% above its 52 week low of $59.08, giving the company a market cap of $3B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 141.4% The company's stock price performance over the past 12 months lags the peer average by -150.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 97.1% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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AAON Inc. (AAON) shares closed today at 1.2% above its 52 week low of $59.08, giving the company a market cap of $3B. This week, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 fell 0.6%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
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10421.0
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2022-02-07 00:00:00 UTC
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AAON Inc. Shares Near 52-Week Low - Market Mover
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AAON
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https://www.nasdaq.com/articles/aaon-inc.-shares-near-52-week-low-market-mover
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nan
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nan
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AAON Inc. (AAON) shares closed today at 0.3% above its 52 week low of $59.08, giving the company a market cap of $3B. The stock is currently down 24.5% year-to-date, down 22.4% over the past 12 months, and up 84.8% over the past five years. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.5%.
Trading Activity
Trading volume this week was 18.2% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9.
Technical Indicators
The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 137.2%
The company's stock price performance over the past 12 months lags the peer average by -146.5%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.7% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON Inc. (AAON) shares closed today at 0.3% above its 52 week low of $59.08, giving the company a market cap of $3B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 137.2% The company's stock price performance over the past 12 months lags the peer average by -146.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.7% higher than the average peer.
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AAON Inc. (AAON) shares closed today at 0.3% above its 52 week low of $59.08, giving the company a market cap of $3B. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.5%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 137.2% The company's stock price performance over the past 12 months lags the peer average by -146.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.7% higher than the average peer.
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AAON Inc. (AAON) shares closed today at 0.3% above its 52 week low of $59.08, giving the company a market cap of $3B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 137.2% The company's stock price performance over the past 12 months lags the peer average by -146.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 100.7% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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AAON Inc. (AAON) shares closed today at 0.3% above its 52 week low of $59.08, giving the company a market cap of $3B. This week, the Dow Jones Industrial Average rose 1.1%, and the S&P 500 rose 1.5%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
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10422.0
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2022-01-18 00:00:00 UTC
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Notable Two Hundred Day Moving Average Cross - AAON
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AAON
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https://www.nasdaq.com/articles/notable-two-hundred-day-moving-average-cross-aaon
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nan
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nan
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $69.03, changing hands as low as $68.75 per share. AAON, Inc. shares are currently trading down about 3.7% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $68.80.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $69.03, changing hands as low as $68.75 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $68.80. AAON, Inc. shares are currently trading down about 3.7% on the day.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $69.03, changing hands as low as $68.75 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $68.80. AAON, Inc. shares are currently trading down about 3.7% on the day.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $69.03, changing hands as low as $68.75 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $68.80. AAON, Inc. shares are currently trading down about 3.7% on the day.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $69.03, changing hands as low as $68.75 per share. AAON, Inc. shares are currently trading down about 3.7% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $68.80.
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10423.0
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2022-01-16 00:00:00 UTC
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AAON (NASDAQ:AAON) Is Reinvesting At Lower Rates Of Return
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AAON
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https://www.nasdaq.com/articles/aaon-nasdaq%3Aaaon-is-reinvesting-at-lower-rates-of-return
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nan
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nan
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Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Although, when we looked at AAON (NASDAQ:AAON), it didn't seem to tick all of these boxes.
Understanding Return On Capital Employed (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on AAON is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.19 = US$84m ÷ (US$516m - US$74m) (Based on the trailing twelve months to September 2021).
Therefore, AAON has an ROCE of 19%. In absolute terms, that's a satisfactory return, but compared to the Building industry average of 14% it's much better.
NasdaqGS:AAON Return on Capital Employed January 16th 2022
Above you can see how the current ROCE for AAON compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
How Are Returns Trending?
In terms of AAON's historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 38% over the last five years. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It may take some time before the company starts to see any change in earnings from these investments.
The Key Takeaway
To conclude, we've found that AAON is reinvesting in the business, but returns have been falling. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 126% gain to shareholders who have held over the last five years. However, unless these underlying trends turn more positive, we wouldn't get our hopes up too high.
Like most companies, AAON does come with some risks, and we've found 1 warning sign that you should be aware of.
While AAON may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The formula for this calculation on AAON is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.19 = US$84m ÷ (US$516m - US$74m) (Based on the trailing twelve months to September 2021). Although, when we looked at AAON (NASDAQ:AAON), it didn't seem to tick all of these boxes. Therefore, AAON has an ROCE of 19%.
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The formula for this calculation on AAON is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.19 = US$84m ÷ (US$516m - US$74m) (Based on the trailing twelve months to September 2021). While AAON may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Although, when we looked at AAON (NASDAQ:AAON), it didn't seem to tick all of these boxes.
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NasdaqGS:AAON Return on Capital Employed January 16th 2022 Above you can see how the current ROCE for AAON compares to its prior returns on capital, but there's only so much you can tell from the past. While AAON may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Although, when we looked at AAON (NASDAQ:AAON), it didn't seem to tick all of these boxes.
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NasdaqGS:AAON Return on Capital Employed January 16th 2022 Above you can see how the current ROCE for AAON compares to its prior returns on capital, but there's only so much you can tell from the past. The Key Takeaway To conclude, we've found that AAON is reinvesting in the business, but returns have been falling. Although, when we looked at AAON (NASDAQ:AAON), it didn't seem to tick all of these boxes.
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10424.0
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2022-01-14 00:00:00 UTC
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Oversold Conditions For AAON
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AAON
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https://www.nasdaq.com/articles/oversold-conditions-for-aaon
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $70.63 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.3. A bullish investor could look at AAON's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares:
Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $70.89.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $70.63 per share. A bullish investor could look at AAON's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $70.89.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $70.63 per share. A bullish investor could look at AAON's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $70.89.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $70.63 per share. A bullish investor could look at AAON's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $70.89.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $70.63 per share. A bullish investor could look at AAON's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $59.22 per share, with $83.79 as the 52 week high point — that compares with a last trade of $70.89.
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10425.0
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2021-11-26 00:00:00 UTC
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Have AAON, Inc. (NASDAQ:AAON) Insiders Been Selling Their Stock?
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AAON
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https://www.nasdaq.com/articles/have-aaon-inc.-nasdaq%3Aaaon-insiders-been-selling-their-stock
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nan
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nan
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We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$125k worth of stock at US$77.69 per share. On the bright side, that sale was only 2.3% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At AAON
In fact, the recent sale by Lead Independent Director Paul Lackey was not their only sale of AAON shares this year. Earlier in the year, they fetched US$75.00 per share in a -US$150k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$78.73. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.8% of Paul Lackey's holding.
Insiders in AAON didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
NasdaqGS:AAON Insider Trading Volume November 26th 2021
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AAON insiders own 21% of the company, currently worth about US$864m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At AAON Tell Us?
An insider sold AAON shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for AAON and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$125k worth of stock at US$77.69 per share. The Last 12 Months Of Insider Transactions At AAON In fact, the recent sale by Lead Independent Director Paul Lackey was not their only sale of AAON shares this year. Insiders in AAON didn't buy any shares in the last year.
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We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$125k worth of stock at US$77.69 per share. The Last 12 Months Of Insider Transactions At AAON In fact, the recent sale by Lead Independent Director Paul Lackey was not their only sale of AAON shares this year. AAON insiders own 21% of the company, currently worth about US$864m based on the recent share price.
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The Last 12 Months Of Insider Transactions At AAON In fact, the recent sale by Lead Independent Director Paul Lackey was not their only sale of AAON shares this year. NasdaqGS:AAON Insider Trading Volume November 26th 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$125k worth of stock at US$77.69 per share.
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The Last 12 Months Of Insider Transactions At AAON In fact, the recent sale by Lead Independent Director Paul Lackey was not their only sale of AAON shares this year. AAON insiders own 21% of the company, currently worth about US$864m based on the recent share price. What Might The Insider Transactions At AAON Tell Us?
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10426.0
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2021-11-23 00:00:00 UTC
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AAON, Inc. (AAON) Ex-Dividend Date Scheduled for November 24, 2021
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AAON
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https://www.nasdaq.com/articles/aaon-inc.-aaon-ex-dividend-date-scheduled-for-november-24-2021
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AAON, Inc. (AAON) will begin trading ex-dividend on November 24, 2021. A cash dividend payment of $0.19 per share is scheduled to be paid on December 17, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that AAON has paid the same dividend.
The previous trading day's last sale of AAON was $77.93, representing a -4.09% decrease from the 52 week high of $81.25 and a 31.59% increase over the 52 week low of $59.22.
AAON is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. (ASML) and Applied Materials, Inc. (AMAT). AAON's current earnings per share, an indicator of a company's profitability, is $1.32. Zacks Investment Research reports AAON's forecasted earnings growth in 2021 as -16.11%, compared to an industry average of 17.6%.
For more information on the declaration, record and payment dates, visit the aaon Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports AAON's forecasted earnings growth in 2021 as -16.11%, compared to an industry average of 17.6%. For more information on the declaration, record and payment dates, visit the aaon Dividend History page.
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AAON, Inc. (AAON) will begin trading ex-dividend on November 24, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that AAON has paid the same dividend.
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AAON, Inc. (AAON) will begin trading ex-dividend on November 24, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the aaon Dividend History page.
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AAON, Inc. (AAON) will begin trading ex-dividend on November 24, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that AAON has paid the same dividend.
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10427.0
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2021-11-22 00:00:00 UTC
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Ex-Dividend Reminder: Badger Meter, AAON and Huntington Ingalls Industries
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AAON
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-badger-meter-aaon-and-huntington-ingalls-industries
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 11/24/21, Badger Meter Inc (Symbol: BMI), AAON, Inc. (Symbol: AAON), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. Badger Meter Inc will pay its quarterly dividend of $0.20 on 12/10/21, AAON, Inc. will pay its semi-annual dividend of $0.19 on 12/17/21, and Huntington Ingalls Industries, Inc. will pay its quarterly dividend of $1.18 on 12/10/21. As a percentage of BMI's recent stock price of $108.97, this dividend works out to approximately 0.18%, so look for shares of Badger Meter Inc to trade 0.18% lower — all else being equal — when BMI shares open for trading on 11/24/21. Similarly, investors should look for AAON to open 0.24% lower in price and for HII to open 0.64% lower, all else being equal.
Below are dividend history charts for BMI, AAON, and HII, showing historical dividends prior to the most recent ones declared.
Badger Meter Inc (Symbol: BMI):
AAON, Inc. (Symbol: AAON):
Huntington Ingalls Industries, Inc. (Symbol: HII):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.73% for Badger Meter Inc, 0.49% for AAON, Inc., and 2.54% for Huntington Ingalls Industries, Inc..
Free Report: Top 7%+ Dividends (paid monthly)
In Monday trading, Badger Meter Inc shares are currently up about 0.5%, AAON, Inc. shares are up about 0.4%, and Huntington Ingalls Industries, Inc. shares are up about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If they do continue, the current estimated yields on annualized basis would be 0.73% for Badger Meter Inc, 0.49% for AAON, Inc., and 2.54% for Huntington Ingalls Industries, Inc.. Free Report: Top 7%+ Dividends (paid monthly) In Monday trading, Badger Meter Inc shares are currently up about 0.5%, AAON, Inc. shares are up about 0.4%, and Huntington Ingalls Industries, Inc. shares are up about 0.4% on the day. Looking at the universe of stocks we cover at Dividend Channel, on 11/24/21, Badger Meter Inc (Symbol: BMI), AAON, Inc. (Symbol: AAON), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. Badger Meter Inc will pay its quarterly dividend of $0.20 on 12/10/21, AAON, Inc. will pay its semi-annual dividend of $0.19 on 12/17/21, and Huntington Ingalls Industries, Inc. will pay its quarterly dividend of $1.18 on 12/10/21.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/24/21, Badger Meter Inc (Symbol: BMI), AAON, Inc. (Symbol: AAON), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. Badger Meter Inc will pay its quarterly dividend of $0.20 on 12/10/21, AAON, Inc. will pay its semi-annual dividend of $0.19 on 12/17/21, and Huntington Ingalls Industries, Inc. will pay its quarterly dividend of $1.18 on 12/10/21. Badger Meter Inc (Symbol: BMI): AAON, Inc. (Symbol: AAON): Huntington Ingalls Industries, Inc. (Symbol: HII): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/24/21, Badger Meter Inc (Symbol: BMI), AAON, Inc. (Symbol: AAON), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. Badger Meter Inc (Symbol: BMI): AAON, Inc. (Symbol: AAON): Huntington Ingalls Industries, Inc. (Symbol: HII): In general, dividends are not always predictable, following the ups and downs of company profits over time. If they do continue, the current estimated yields on annualized basis would be 0.73% for Badger Meter Inc, 0.49% for AAON, Inc., and 2.54% for Huntington Ingalls Industries, Inc.. Free Report: Top 7%+ Dividends (paid monthly) In Monday trading, Badger Meter Inc shares are currently up about 0.5%, AAON, Inc. shares are up about 0.4%, and Huntington Ingalls Industries, Inc. shares are up about 0.4% on the day.
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Badger Meter Inc (Symbol: BMI): AAON, Inc. (Symbol: AAON): Huntington Ingalls Industries, Inc. (Symbol: HII): In general, dividends are not always predictable, following the ups and downs of company profits over time. If they do continue, the current estimated yields on annualized basis would be 0.73% for Badger Meter Inc, 0.49% for AAON, Inc., and 2.54% for Huntington Ingalls Industries, Inc.. Free Report: Top 7%+ Dividends (paid monthly) In Monday trading, Badger Meter Inc shares are currently up about 0.5%, AAON, Inc. shares are up about 0.4%, and Huntington Ingalls Industries, Inc. shares are up about 0.4% on the day. Looking at the universe of stocks we cover at Dividend Channel, on 11/24/21, Badger Meter Inc (Symbol: BMI), AAON, Inc. (Symbol: AAON), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends.
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10428.0
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2021-11-17 00:00:00 UTC
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Is AAON, Inc.'s (NASDAQ:AAON) Latest Stock Performance A Reflection Of Its Financial Health?
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AAON
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https://www.nasdaq.com/articles/is-aaon-inc.s-nasdaq%3Aaaon-latest-stock-performance-a-reflection-of-its-financial-health
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nan
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nan
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AAON (NASDAQ:AAON) has had a great run on the share market with its stock up by a significant 15% over the last three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. Specifically, we decided to study AAON's ROE in this article.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
How Do You Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for AAON is:
18% = US$71m ÷ US$400m (Based on the trailing twelve months to September 2021).
The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.18.
What Is The Relationship Between ROE And Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.
AAON's Earnings Growth And 18% ROE
To start with, AAON's ROE looks acceptable. Further, the company's ROE is similar to the industry average of 20%. Consequently, this likely laid the ground for the decent growth of 9.9% seen over the past five years by AAON.
We then performed a comparison between AAON's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 9.9% in the same period.
NasdaqGS:AAON Past Earnings Growth November 17th 2021
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if AAON is trading on a high P/E or a low P/E, relative to its industry.
Is AAON Efficiently Re-investing Its Profits?
With a three-year median payout ratio of 28% (implying that the company retains 72% of its profits), it seems that AAON is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
Additionally, AAON has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 21% over the next three years.
Conclusion
In total, we are pretty happy with AAON's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With a three-year median payout ratio of 28% (implying that the company retains 72% of its profits), it seems that AAON is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Additionally, AAON has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. AAON (NASDAQ:AAON) has had a great run on the share market with its stock up by a significant 15% over the last three months.
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Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for AAON is: 18% = US$71m ÷ US$400m (Based on the trailing twelve months to September 2021). NasdaqGS:AAON Past Earnings Growth November 17th 2021 Earnings growth is a huge factor in stock valuation. AAON (NASDAQ:AAON) has had a great run on the share market with its stock up by a significant 15% over the last three months.
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We then performed a comparison between AAON's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 9.9% in the same period. NasdaqGS:AAON Past Earnings Growth November 17th 2021 Earnings growth is a huge factor in stock valuation. AAON (NASDAQ:AAON) has had a great run on the share market with its stock up by a significant 15% over the last three months.
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AAON's Earnings Growth And 18% ROE To start with, AAON's ROE looks acceptable. Additionally, AAON has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. AAON (NASDAQ:AAON) has had a great run on the share market with its stock up by a significant 15% over the last three months.
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10429.0
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2021-10-08 00:00:00 UTC
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AAON's (NASDAQ:AAON) 20% CAGR outpaced the company's earnings growth over the same five-year period
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AAON
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https://www.nasdaq.com/articles/aaons-nasdaq%3Aaaon-20-cagr-outpaced-the-companys-earnings-growth-over-the-same-five-year
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nan
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. Long term AAON, Inc. (NASDAQ:AAON) shareholders would be well aware of this, since the stock is up 138% in five years. Also pleasing for shareholders was the 11% gain in the last three months.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over half a decade, AAON managed to grow its earnings per share at 8.2% a year. This EPS growth is lower than the 19% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 47.95.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
NasdaqGS:AAON Earnings Per Share Growth October 8th 2021
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of AAON, it has a TSR of 147% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
AAON provided a TSR of 12% over the last twelve months. But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 20% per year for five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
We will like AAON better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Long term AAON, Inc. (NASDAQ:AAON) shareholders would be well aware of this, since the stock is up 138% in five years. Over half a decade, AAON managed to grow its earnings per share at 8.2% a year. NasdaqGS:AAON Earnings Per Share Growth October 8th 2021 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies.
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Long term AAON, Inc. (NASDAQ:AAON) shareholders would be well aware of this, since the stock is up 138% in five years. Over half a decade, AAON managed to grow its earnings per share at 8.2% a year. NasdaqGS:AAON Earnings Per Share Growth October 8th 2021 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies.
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Long term AAON, Inc. (NASDAQ:AAON) shareholders would be well aware of this, since the stock is up 138% in five years. Over half a decade, AAON managed to grow its earnings per share at 8.2% a year. NasdaqGS:AAON Earnings Per Share Growth October 8th 2021 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies.
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We will like AAON better if we see some big insider buys. Long term AAON, Inc. (NASDAQ:AAON) shareholders would be well aware of this, since the stock is up 138% in five years. Over half a decade, AAON managed to grow its earnings per share at 8.2% a year.
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10430.0
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2021-09-08 00:00:00 UTC
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With AAON, Inc.'s (NASDAQ:AAON)) price down 5.0% this week, insiders might find some solace having sold US$685k worth of shares earlier this year.
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AAON
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https://www.nasdaq.com/articles/with-aaon-inc.s-nasdaq%3Aaaon-price-down-5.0-this-week-insiders-might-find-some-solace
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Insiders at AAON, Inc. (NASDAQ:AAON) sold US$685k worth of stock at an average price of US$71.60 a share over the past year, making the most of their investment. After the stock price dropped 5.0% last week, the company's market value declined by US$178m, but insiders were able to mitigate their losses.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At AAON
The Lead Independent Director, Paul Lackey, made the biggest insider sale in the last 12 months. That single transaction was for US$195k worth of shares at a price of US$65.00 each. So what is clear is that an insider saw fit to sell at around the current price of US$64.71. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year AAON insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NasdaqGS:AAON Insider Trading Volume September 8th 2021
I will like AAON better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does AAON Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AAON insiders own about US$738m worth of shares (which is 21% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About AAON Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of AAON, we can't say the same about the selling of shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for AAON.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Insiders at AAON, Inc. (NASDAQ:AAON) sold US$685k worth of stock at an average price of US$71.60 a share over the past year, making the most of their investment. The Last 12 Months Of Insider Transactions At AAON The Lead Independent Director, Paul Lackey, made the biggest insider sale in the last 12 months. In the last year AAON insiders didn't buy any company stock.
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Insiders at AAON, Inc. (NASDAQ:AAON) sold US$685k worth of stock at an average price of US$71.60 a share over the past year, making the most of their investment. In the last year AAON insiders didn't buy any company stock. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for AAON.
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Insiders at AAON, Inc. (NASDAQ:AAON) sold US$685k worth of stock at an average price of US$71.60 a share over the past year, making the most of their investment. NasdaqGS:AAON Insider Trading Volume September 8th 2021 I will like AAON better if I see some big insider buys. The Last 12 Months Of Insider Transactions At AAON The Lead Independent Director, Paul Lackey, made the biggest insider sale in the last 12 months.
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Insiders at AAON, Inc. (NASDAQ:AAON) sold US$685k worth of stock at an average price of US$71.60 a share over the past year, making the most of their investment. In the last year AAON insiders didn't buy any company stock. The Last 12 Months Of Insider Transactions At AAON The Lead Independent Director, Paul Lackey, made the biggest insider sale in the last 12 months.
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10431.0
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2021-09-01 00:00:00 UTC
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AAON Makes Notable Cross Below Critical Moving Average
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AAON
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https://www.nasdaq.com/articles/aaon-makes-notable-cross-below-critical-moving-average-2021-09-01
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nan
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nan
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $67.84, changing hands as low as $66.57 per share. AAON, Inc. shares are currently trading down about 1.9% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $54.845 per share, with $81.25 as the 52 week high point — that compares with a last trade of $66.72.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $67.84, changing hands as low as $66.57 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $54.845 per share, with $81.25 as the 52 week high point — that compares with a last trade of $66.72. AAON, Inc. shares are currently trading down about 1.9% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $67.84, changing hands as low as $66.57 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $54.845 per share, with $81.25 as the 52 week high point — that compares with a last trade of $66.72. AAON, Inc. shares are currently trading down about 1.9% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $67.84, changing hands as low as $66.57 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $54.845 per share, with $81.25 as the 52 week high point — that compares with a last trade of $66.72. AAON, Inc. shares are currently trading down about 1.9% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $67.84, changing hands as low as $66.57 per share. AAON, Inc. shares are currently trading down about 1.9% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $54.845 per share, with $81.25 as the 52 week high point — that compares with a last trade of $66.72.
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10432.0
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2021-08-09 00:00:00 UTC
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AAON (NASDAQ:AAON) Will Want To Turn Around Its Return Trends
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AAON
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https://www.nasdaq.com/articles/aaon-nasdaq%3Aaaon-will-want-to-turn-around-its-return-trends-2021-08-09
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If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So while AAON (NASDAQ:AAON) has a high ROCE right now, lets see what we can decipher from how returns are changing.
What is Return On Capital Employed (ROCE)?
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on AAON is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.21 = US$90m ÷ (US$504m - US$79m) (Based on the trailing twelve months to June 2021).
So, AAON has an ROCE of 21%. In absolute terms that's a great return and it's even better than the Building industry average of 14%.
NasdaqGS:AAON Return on Capital Employed August 9th 2021
In the above chart we have measured AAON's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free report for AAON.
What Does the ROCE Trend For AAON Tell Us?
In terms of AAON's historical ROCE movements, the trend isn't fantastic. Historically returns on capital were even higher at 39%, but they have dropped over the last five years. However it looks like AAON might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It may take some time before the company starts to see any change in earnings from these investments.
What We Can Learn From AAON's ROCE
To conclude, we've found that AAON is reinvesting in the business, but returns have been falling. Yet to long term shareholders the stock has gifted them an incredible 156% return in the last five years, so the market appears to be rosy about its future. However, unless these underlying trends turn more positive, we wouldn't get our hopes up too high.
If you're still interested in AAON it's worth checking out our FREE intrinsic value approximation to see if it's trading at an attractive price in other respects.
High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The formula for this calculation on AAON is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.21 = US$90m ÷ (US$504m - US$79m) (Based on the trailing twelve months to June 2021). However it looks like AAON might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. So while AAON (NASDAQ:AAON) has a high ROCE right now, lets see what we can decipher from how returns are changing.
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NasdaqGS:AAON Return on Capital Employed August 9th 2021 In the above chart we have measured AAON's prior ROCE against its prior performance, but the future is arguably more important. However it looks like AAON might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. So while AAON (NASDAQ:AAON) has a high ROCE right now, lets see what we can decipher from how returns are changing.
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So while AAON (NASDAQ:AAON) has a high ROCE right now, lets see what we can decipher from how returns are changing. NasdaqGS:AAON Return on Capital Employed August 9th 2021 In the above chart we have measured AAON's prior ROCE against its prior performance, but the future is arguably more important. The formula for this calculation on AAON is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.21 = US$90m ÷ (US$504m - US$79m) (Based on the trailing twelve months to June 2021).
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So while AAON (NASDAQ:AAON) has a high ROCE right now, lets see what we can decipher from how returns are changing. However it looks like AAON might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. The formula for this calculation on AAON is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.21 = US$90m ÷ (US$504m - US$79m) (Based on the trailing twelve months to June 2021).
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10433.0
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2021-08-06 00:00:00 UTC
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AAON, inc (AAON) Q2 2021 Earnings Call Transcript
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-q2-2021-earnings-call-transcript-2021-08-06
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Image source: The Motley Fool.
AAON, inc (NASDAQ: AAON)
Q2 2021 Earnings Call
Aug 6, 2021, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen. Welcome to AAON, Inc. Second Quarter Sales and Earnings Call. [Operator Instructions] I would now like to turn the meeting over to Gary Fields, CEO and President. Please go ahead.
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Gary Fields -- President, Chief Executive Officer & Director
Good morning. Thank you for joining us. [Operator Instructions]. Today, joining me on the call, our Executive Chairman, Norm Asbjornson; and our Chief Financial Officer, Rebecca Thompson. Rebecca will open by reviewing our financial performance. Rebecca, please?
Rebecca Thompson -- Vice President of Finance, Chief Financial Officer & Treasurer
Thank you, Gary. I'd like to begin by discussing the comparative results for the three months ended June 30, 2021 versus June 30, 2020. Net sales increased 14.6% to $143.9 million from $125.6 million. The year-over-year increase was driven by a robust replacement demand broadly across our nonresidential building market. Higher production rates were also a contributing factor as we did not experience COVID-related absence employee absences like we did in 2020. Also the percent price increase we implemented in early January was a driving factor. All these items are partially offset by changes in the product mix to lower-priced units.. Our gross profit increased 10.4% to $42.1 million from $38.1 million.
As a percentage of sales, gross profit was 29.3% in the quarter just ended compared to 30.4% in the second quarter of 2020. The slight decline in gross profit was mainly related to higher material costs. Billing, general and administrative expenses increased 6% in to $16.9 million from $15.9 million in 2020. As a percentage of sales, SG&A decreased to 11.7% of oil in the quarter just ended from 12.7% in the second quarter of 2020. SG&A as a percent of sales decreased as we did not have the $1.25 million donation we made in 2020 to Winifred Public School. Income from operations increased 13.6% to $25.2 million or 17.5% of sales from $22.2 million or 17.7% of sales in 2020. Our effective tax rate was decreased to 18.3% from 20%. The lower tax rate was mainly related to lower corporate income tax rates in the state of Oklahoma that were signed into law during the quarter.
This resulted in a onetime benefit of $0.8 million. The net estimated annual 2021 effective tax rate, excluding discrete events, is expected to be approximately 25%. Net income increased to $20.6 million or 14.3% of sales compared to $17.8 million or 14.2% of sales in the first quarter of 2020. Diluted earnings per share increased by 11.8% to $0.38 per share from $0.34 per share in 2020. Turning to the balance sheet. You'll see that we had a working capital balance of $180.6 million versus $161.2 million on December 31, 2020. Unrestricted cash totaled $111.4 million at June 30, 2021, up from $79 million at the end of 2020. Our current ratio is approximately 3.3:1. Our capital expenditures were $33.2 million for the six months ended June 30, 2021.
We expect capital expenditures for the year to be approximately $70 million. The company had stock repurchases of $10.3 million during the six months ended June 30, 2021. Shareholders' equity per diluted share is $7.14 at June 30, 2021, compared to $6.67 at December 31, 2020. I'd now like to turn the call back over to our CEO, President, Gary Fields.
Gary Fields -- President, Chief Executive Officer & Director
I'd like to start off by saying that the second quarter was a bit better than we expected. Organic sales were up year-over-year, nearly [Indecipherable] And this is quite noteworthy for us because we're not facing the same easy comparison to 2020 that some of our nonresidential market competitors experienced. A great deal of the competitors peers in the HVAC market were down in the 20% to 25% range in 2020. So it's an easy upside for '21 for them. On the other hand, we were up 5% in the second quarter of 2020 compared to the year before. So compared to our second quarter of '19, which is where I'd really like to go back and talk about because that takes us pre-coronavirus. Our sales in second quarter '21 were up over 20% versus '19. Looking at it the same way the industry sales as an industry were down either flat to slightly down versus 2019.
So this is quite an accomplishment that we've achieved. The other thing is we ended the year with our backlog at a lower level than was ideal. We had ramped up production significantly, which was a great thing, and the orders had slowed down a bit. While orders resumed right after the first of the year on a brisk pace. The backlog on June 30, 2021 is $138.1 million, up 35% up year-over-year and 43% up over the end of the first quarter. The orders are up year-over-year 70% in the second quarter. So we see no demand slowdowns whatsoever. Talking to our sales channel. The pipeline is very robust. And so we're in real good shape going forward. [Indecipherable] backlog was only slightly down from the end of June, but they still in the $130 million range. I think it was $134 million. So we're maintaining a brisk pace of manufacturing as evidenced by the record quarter bookings are very brisk back is very robust.
And so going forward, the rest of the year, we're looking at things to stay steady to maybe slightly strengthening. If the labor market was just a little more favorable for us to get more people then we would be prepared to accelerate even more. But we're in a very tight labor market right now. And I think that's industrywide. I hear a lot of people talking about it. So I want to say that the replacement market demand has been much, much stronger. Historically, AAON had been about 50% replacement, 50% new construction. Thus far this year, we're running in the low to mid-60% range, I think 64% to 68% swinging back and forth through there on replacement. And this is been a dedicated of ours that we put in distinct sales channel guidance to and support to make this happen and we're seeing the results, and we're very pleased with that. Now the new construction outlook is bright as it's been in a very, very long time. architecture billing index index construction starts, all of these indexes are up substantially.
Architectural Billing Index has been up for several months in a row now. I think it's approaching five months that Architectural Billing Index has been up. And I think that Dodge analytics support that it's actually getting into construction. So we're looking at all of our segments as we normally distribute the commercial and retail is actually a little better than we anticipated. Office buildings are not horrible. They're not great. Medical and healthcare is much, much stronger than it's been in the past. Of course, education has always been a very strong thing for AAON, continues to be. And with the focus on indoor air quality and some federal funding to help them with that, we look for that to continue and accelerate Manufacturing has been just kind of decent, I won't call it good or bad. Lodging, again, has been a bit of a surprise. Not only if we renovated through the replacement market, a lot of lodging facilities, we're actually seeing a few new ones being built.
So that's kind of where our markets are not. I guess I left one out, the growth facility market. That's been more robust in '21 than it had been in the recent few quarters. So our margins continue to march on. We were 29.3% versus 30.4% a year ago. It was a little softer than we hoped. But over considering inflationary pressures, I think we did a very good job where we have materials that were costing us more, we gained labor efficiency, manufacturing efficiency. The way we measure our manufacturing efficiency inside here, we picked up several percentage points of improvement. The cost of goods sold materials components were down year-over-year 1%. The June and September price increase -- those have positioned us to maintain or possibly improve our gross margin in the second half. We expect most of that to happen in the fourth quarter and going into Q1 of '22. So our timing typically, because our lead times average somewhere around eight weeks, maybe 10 weeks.
So when we have a price increase, it takes eight to 10 weeks to flush the existing backlog through and get the new backlog on the plant floor. So just tying that June 1, we had the price increase. So about today would be about when we would start seeing that price increase hit the floor. So roughly half of Q3, you'll see that 4% price increase. We did have some pressures with some additional wage wages increase. We did this to maintain a competitive position in the labor market. We have had some success with that, and I look for continued success. I think we're doing an excellent job of managing SG&A. It's just up 6% but 15% sales growth. So that was not a linear tracking. It was less than that, which is always a great thing. Both Tulsa and Longview have seen general productivity improvements. The ad headcount across both operations combined is down about 5% year-over-year. The Longview headcount is up.
The new building that we put in, we were able to get ahead of the curve and get some people in, and Tulsa's headcount is slightly down. So we've seen market share gains in multiple areas. Our water-source heat pump sales were up 69% versus this time last year. We got the newest AHRI data just yesterday, and it showed about 1.5% of the market gain. So we were going from about 6% to 7.4%, I think is what it was. Parts sales. This is another wonderful occurrence for us. This was a very focused activity along with our replacement market. We've put in some very nice enhancements for the sales channels and support structures and some planning structures. So parts sales are up 42% year-over-year. Now last year, parts sales were down at this time, people weren't working on the building so much. So I don't have how that's relevant to 2019 other than I can tell you that parts sales are at a record level.
So I know that we're well ahead of '19 and '20. Air handlers and condensing units the sales were up 38%. This is reflective of a couple of things. One is our product has become more and more appreciated because we have air source heat pump that has some very, very good operating characteristics to control humidity as well as be a heat pump in some larger sizes. The other thing is the new facility that we built in Longview has given us the capacity to meet the demand. We are ramping up that facility and doing quite well with that. So we're going to continue to invest. I think Rebecca said that we expect to spend $70 million in '21, and we were in the mid- low to mid-30s -- 33 at this point. So that will be both refreshing some equipment that's a little slower or on aged out and also a little bit of accretive manufacturing capacity. So heading into the second half of the year, we're quite optimistic.
Orders and backlog trends are strong. While there's some inflation headwinds that are a little bit of a challenge, we think we're ahead of that with our team. And so we believe that our margins will improve slightly throughout the year and end the year just slightly above our traditional target. In general, we expect sales and earnings to improve all through the second half of the year and going into the first part of next year because the 5% price increase across the board goes into effect September 1, and we're not going to see that in the plant floor until the very end of core, and it will be more material in Q1 of '22. Unlike most years where we've had a little bit of a bell curve, where Q1 and Q4 were down several percentage points in revenue versus Q2 and Q3, we're looking for Q3 to be at least comparable to Q2 with a slight increase.
And we're looking at Q4 to -- in all likelihood be comparable to that. So we've kind of hit a rhythm here that we're looking for two, three and four to be a stack up relatively close to each other with maybe slight undulations but nothing substantial. It won't be because we don't have the orders and the bookings that will be things that are totally outside of that, like Q4 has more holidays in it than Q3. So we'll be one or two days short of manufacturing because we do manufacture seven days a week in that will affect it by a few dollars. But otherwise, I think we're in very, very good shape. So we will take any questions now.
Questions and Answers:
Operator
[Operator Instructions] Your first question comes from the line of Julio Romero with Sidoti & Company.
Julio Romero -- Sidoti & Company -- Analyst
Good morning. So I guess my first question is just on the increased volumes in the quarter, the increased production. Could you rank order the -- you talked about the return to historical employee historical employee levels and increased manufacturing capacity. Can you just kind of rank order the two of those and talk about how they impacted volumes in the quarter?
Gary Fields -- President, Chief Executive Officer & Director
Yes. Well, first off, the New Longview facility is so much more ideal than the old facility was that we're producing I think casual math said around 27%, 28% more with the same number of people. Now we have more people there, so we're producing even more than that. But we've had a very nice gain in our Longview facility with the new plant. And that is primarily related to the infrastructure and the arrangement. Now we have added a few people in view versus a year ago. They are in the positive range by maybe 20 to 30 people, I think is what it is. In Tulsa, however, we're down probably 30 or 40 people versus last year on the plant floor. And yet we're producing at a very, very high level here as well. And that is an attribute to the manufacturing engineering group and the manufacturing group that have separately gone through and refined all of our processes cleaned up a lot of [Indecipherable] things that we knew were beneficial to the company that would make us more efficient.
So we're several percentage points more efficient with that labor here. We measure it on dollars of revenue per person on the plant floor and that dollars of revenue per person on the plant floor let me had to calculate it here real quick, and I'll give you a percentage on that because I know what those numbers are. It's about 8% in revenue dollars on the plant floor, and this is absent of the price increase. I took that into account in that calculation. This is actual material going out the door. So to answer your question, if we had more people, we would go up linearly because the infrastructure is in place, everything is here. We could use about 200 people in Tulsa and about another 50 in Longview, and we would generate very nice revenue with those very nice profits because we absorbed a lot of the fixed cost.
Julio Romero -- Sidoti & Company -- Analyst
Got it. That's very helpful. And just thinking about the order growth, it's it's very robust, obviously, sequentially for the last two quarters. And you touched on the increased manufacturing capacity, how labor stands today? I guess, given all that, how do you see orders trending sequentially throughout the next few quarters?
Gary Fields -- President, Chief Executive Officer & Director
Well, I think the rate that we're booking will maintain relatively steady for the next couple of quarters according to the intelligence we've gathered from our sales channel partners and what they tell us is in the pipeline. There's many drivers to that, but one of the key drivers is our lead time, whereas a couple of years ago, our lead time is very onerous to our efforts. And our sales channel partners told us we lost over $100 million in bookings opportunity because of that poor lead time. They had to turn that many orders down. Well, this year, we're not up $100 in whatever million in bookings, but we're approaching that. We're somewhere around $80 million above last year, I think.
Rebecca Thompson -- Vice President of Finance, Chief Financial Officer & Treasurer
Yes, I think, yes.
Gary Fields -- President, Chief Executive Officer & Director
And so I think lead time has been a very motivating factor to that. Now there are people that have always wanted AAON equipment, and we're even willing to pay for it that they weren't willing to wait for it. That's the people that are different this year than we're a couple of years back. So we have a handle on the production needs. We have surplus capacity in the infrastructure. And now that we have behind us the federal government subsidy to people not working seems that we're maybe gaining a little ground on that. that only ended about five weeks ago here in Oklahoma and also in Texas. It was right at the end of June. But we've seen a very noticeable increase in applicants and qualified applicants. So I have great confidence that we will continue to service our market with acceptable or even appreciative lead times. People appreciate the lead times that we have.
Julio Romero -- Sidoti & Company -- Analyst
Got it. And just to clarify, the rate of bookings could continue to rise sequentially?
Gary Fields -- President, Chief Executive Officer & Director
The rate of bookings, I believe, is going to stay relatively steady. So if we would look at our rate year-to-date on bookings, then it looks like that stays relatively steady. Unlike normally, about this time of year, we see a decline in bookings rate. But at this point in time, we've not seen a decline in bookings rate and the pipeline is telling us it's going to remain at this steady rate.
Julio Romero -- Sidoti & Company -- Analyst
And you're looking at that from a year-over-year basis or
Gary Fields -- President, Chief Executive Officer & Director
I'm looking at that for the past six months basis for a rate.
Julio Romero -- Sidoti & Company -- Analyst
Okay. Okay. I guess I'm missing what could go wrong? I mean everyone is suffering from industrywide supply chain -- constraint [Indecipherable] I don't know.
Gary Fields -- President, Chief Executive Officer & Director
But what could go wrong list -- that's extensive. I mean, we got this delta variant that's going around. One of our plugs of 2020 that could come into a blessing of 2021 is we had a significant number of our people on the plant floor that had coronavirus in 2020. If you'll recall from about mid-June to mid-July we lost hundreds of people that either had it or thought they had it and decided to stay out. The other thing is that we had vaccinations available here at the plant. We had a healthcare facility that brought mobile vaccinations into the plant, and we had several hundred people that took advantage of that.
So I don't know what our percent vaccination is out there. But if I was to make just a little bit of [Indecipherable] math guess and say between those that have had the virus and that have been vaccinated, I'd say we're -- we've got hard immunity, we're looking real good. We do have a spot here and there where we've got a couple of people out even at this point in time. But something like I could definitely rear its ugly head again. Supply chain, we are in a very, very good position. I sat down with that group earlier this week to review everything. We have an unusually large inventory right now. If you look through the [Indecipherable], you'll see what's our inventory, $83 million, $87 million, something like that. $87 million, that's not ideal in terms of best use of cash, you'd like for that to be more like 10% of revenue, it should be down in the $50 million, $60 million range.
But I'm going to tell you, in 2021, I'm the proudest guy on the block to have $87 million because I can build equipment. And we've had some irritants from supply chain, but we haven't had anything that's plagued this and shut us down and some of these things. But there's a myriad of things that are going out there that are you've never seen before. Maybe you've seen them and they came back. But we have a high level of confidence. We went through 2020 with around 10% growth in the face of all of our competitors essentially were down 15%, 20%, 25%. So we operated navigated through that very nasty rough condition better than most. And so I think this team is very strong, very capable and that we are continuing to navigate through all those obstacles with great skill.
Julio Romero -- Sidoti & Company -- Analyst
And just last one, I just -- you mentioned $87 million of inventory. I imagine all things considered in this environment, you've got to have a little more inventory than you need than not. I mean how are you thinking about those inventory levels?
Gary Fields -- President, Chief Executive Officer & Director
Absolutely. I went through there. We have not had any supply chain issues that have slowed us down we have had a buffer. So when we had one of our suppliers of compressors that was having problems getting some insignificant little component that kept them from completing a compressor for instance. And they said, we're going to be delayed two, three weeks on this next shipment. Well, I had four months of inventory here of that particular compressor. And so that two or three weeks didn't do anything to us, it was [Indecipherable]. These people that are running closer to just in time on their inventory, they're sitting there looking at a bunch of units they can't build.
So I'm very proud of what our our purchasing department and logistics control department has done in keeping us ahead of these issues. Steel is another one. I hear people talking about, oh, I can't get steel. We don't not only have this place full fee on warehouses full of steel, already paid for waiting on us. So we're in very good shape.
Julio Romero -- Sidoti & Company -- Analyst
Great. I'll hop back into queue and thanks for taking the questions.
Operator
[Operator Instructions] Your next question comes from the line of Jon Braatz with Kansas City Capital.
Jon Braatz -- Kansas City Capital -- Analyst
Good morning everyone. Gary, I have a question maybe Norm can chime in, too. We saw a dramatic shift in the mix in this quarter to a lot of lower-priced units. I guess, historically, have you seen such a shift before? And is it being driven by the replacement market? Business being so strong?
Gary Fields -- President, Chief Executive Officer & Director
It's being driven by two things, Jon. And it's being driven this quarter that we just ordered was driven by the K-12 school business. And a significant portion of that was replacement versus new. So what happened there, in my opinion, was the demand for better indoor air quality. The things that are added that AAON has a very, very strong capability of our inherent design, very desirable. A lot of schools said we're going to replace our units. And we want AAON units, and we had lead time available. We have the kind of equipment that they wanted available, and we were able to service that. We got one order from one school district in North Texas that was 811 units, and there were only like five SKUs whole thing. This is what generated more of those small units was that K-12 business that we serviced.
Norman H. Asbjornson -- Founder & Executive Chairman
We don't get [Indecipherable].
Jon Braatz -- Kansas City Capital -- Analyst
All right. The -- would you -- Gary, would you expect that to continue that at mix?
Gary Fields -- President, Chief Executive Officer & Director
Well, I think the mix will bounce out to more traditional going for the rest of the year. It's still going to be biased somewhat toward the smaller units for a little while, but it will start swinging back toward midsize to larger units as a higher percentage of the mix the balance of the year because we've completed delivery on the vast majority of those schools. Now a lot of that delivery took place in July and August, so the first 1.5 months, two months of this quarter. And that's why I say it's beginning to swing now. When I look at the line rates for the various manufacturing lines that make the different size units, I'm seeing the smaller unit line, the daily rates slowed down just a little, the midsize and larger line pick up a little. So this is kind of a balancing quarter right here. In Q4, I think, will be spot on normal from everything I can see.
Jon Braatz -- Kansas City Capital -- Analyst
Okay. Okay. Secondly, last night, I went back and looked at some of the early things I made -- I wrote on the water-source heat pump. And at the time when it was first introduced the opportunity was around $100 million, and that was over a three- to five-year time frame. And Gary, we're sitting at $25 million now maybe for the full year. I think that's sort of what my numbers show. Manufacturing doesn't seem to be a problem anymore. How is is it going to -- what is it going to take to get the $100 million. Is that still a goal has things changed maybe competitively or anything like that, that maybe is going to make it tougher to get to that $100 million? Is that really still an opportunity?
Gary Fields -- President, Chief Executive Officer & Director
It is absolutely still an opportunity, and I've described it for the past two or three quarters. What we did was we sat down and went for a clean sheet design, took all the input from the market on all the desirable features and characteristics that they wanted. And that's what we designed and introduced and we were a bit naive to the fact that about 75% of the overall market due to 75% is replacement market. And when they replace these the configuration needs to be as near identical as possible because they have minutes or hours to replace these things, not days and weeks. And so we didn't take that into account with our initial design. Now our initial design has maintained a very nice rate of sale where we have people that like all those characteristics we designed into it.
So we're going to continue to offer our initial design because it is very -- like you said, about $25 million a year. But in order to get to that bigger part of the market, and those numbers work out exactly right. If it's 25% new construction and 75% replacement market and we need to be at $100 million, we're at 25% of that. Like 80-something of our units are going in new construction near -- I mean, near all of our units are going into new construction. So we have -- we're closing in on finishing the design testing implementation of a backwardly compatible ideal replacement unit. We're having a sales meeting in early October in Great line, Texas. It's our intention and our goal to introduce that new line to our sales channel partners there.
We only have a national sales meeting for two or three years. we make sure that when we do that we've got a significant number of advancements and new things to share with them. And so that's where we're at this year. And this water source heat pump line will be shared with about 1,000 sales channel partners, individuals in October, if that's a three-day sales meeting. And I look for 2022 to resume the growth of the water source heat pipe business.
Jon Braatz -- Kansas City Capital -- Analyst
Okay. So the design and the manufacturing is all completed or nearly completed so that you'll be right to do beginning of the year?
Gary Fields -- President, Chief Executive Officer & Director
Yes. I checked in on that again earlier this week to make sure that our October sales meeting, we would have all the testing, all the data, all the marketing materials, everything for a full rollout. We will have a full rollout in early October, if that sales may be complete, ready to go.
Jon Braatz -- Kansas City Capital -- Analyst
Okay. Alright, Gary thanks very much.
Operator
Your next question comes from the line of David Derman with Green Summit.
David Derman -- Green Summit -- Analyst
I wanted to make sure I understood your thinking in terms of how much backlog in terms of weeks of revenues you're looking to keep. I don't remember exactly. I think in the past, you had wanted to keep maybe somewhere in the round of eight weeks of capacity in backlog, but it seems like that's a moving target as you ramp up your capacity and your production and efficiency. So could you update us on that, please?
Gary Fields -- President, Chief Executive Officer & Director
Well, your numbers are almost exactly right. Ideal backlog would be about eight weeks because our production continues to increase. Now we've got substantial infrastructure in place that we don't have enough personnel to fully utilize. So our ramp-up is much quicker now than it has been in the past. Three, four years ago, we were behind on infrastructure. And that's why we built the new building in Longview, which was a three-year endeavor start to finish. And that's why we went through and cleaned up the Tulsa facility and added a lot of production here. So we can ramp up faster than we could in the past. But our ideal backlog right now would be eight weeks. Now I will tell you there's a little peril with eight weeks across the board. Your high-volume moving products. They're smaller-sized units.
That's not a problem whatsoever. six weeks, eight weeks is all the same. It's fine. But when you start getting into the larger-sized units that you have lower volumes, then it's really hard to have an inventory, some of the unique parts that it takes to build those units. And the supply chain being a little cloudy right now for some of those low-volume components makes it a little more difficult. I will say as a total tranche eight weeks is ideal. But if I divided that up from product lines, the smaller lines would be six weeks and the larger lines would be maybe 10 or 12 weeks.
David Derman -- Green Summit -- Analyst
Okay. So at [Indecipherable] right now, you look like you're about call it, 12 weeks on back of the envelope math where backlog and sales are roughly similar right now?
Gary Fields -- President, Chief Executive Officer & Director
Yes. So right now, our published lead times across the border with rare exception or 10 weeks. And the reason for that is project planning. So some of this backlog we have due to project planning they have the order in here, but we allow them to put a date that's longer than lead time so that they get their spot in the waiting line. We've got some projects that have been delayed because they can't staff them, so they've moved a little bit. But if you looked at it in simple, like you said, back of the envelope math, it does look like somewhere around 12 weeks. But when you look at it on our production schedule, you'll see that we've published in 10 weeks and everything is in the green, very little in the red as far as being tardy versus commitment.
David Derman -- Green Summit -- Analyst
Got it. And if I understood your comments earlier in the call appropriately, your looking for your orders signed to continue at roughly at a similar pace in the second half of the year that they signed in the first half of the year. And very simple math, you signed about $320 million in orders in the first half of the year. So if I assume something similar in the second half, it's another $320 million, you thought your sales may maintain at roughly their current rate, which is, call it, $280 million, $290 million. It seems like another $30 million or $40 million of backlog might accrue. So your backlog might end up. It seems like closer to 11 to 12 weeks, if I'm understanding.
Gary Fields -- President, Chief Executive Officer & Director
We've got the bookings a little off. Looking today, August 5, year-to-date total is $335 million.
David Derman -- Green Summit -- Analyst
That is through August 5th. That's really helpful.
Gary Fields -- President, Chief Executive Officer & Director
Yes. Yes, that's through August. So I think when you go back and cycle that through, let's see here, that's -- I don't have -- I've got a month-to-date average, but I don't have a year-to-date average. I see that, that's plus $91 million versus a year ago. I don't know how many days in the year there is to August 5.
David Derman -- Green Summit -- Analyst
It's 217 days. So if I'm just doing simple...
Gary Fields -- President, Chief Executive Officer & Director
35 divided by 2017. Give me that one, while you're doing the math.
David Derman -- Green Summit -- Analyst
Sorry, yes, I took the $365 million on 2017 gets you to -- if I'm following orders signed of, call it, $615 million or so.
Gary Fields -- President, Chief Executive Officer & Director
Well, it's $335 million, not $365 million.
David Derman -- Green Summit -- Analyst
I was doing strict days [Indecipherable]
Gary Fields -- President, Chief Executive Officer & Director
I got you, I got you. Okay. Well, and we only have 355 days. We have 10 days of holidays that we don't book.
David Derman -- Green Summit -- Analyst
Okay. Okay. So if I call it $600 million plus or minus of bookings, revenues to date are, call it, $260 million plus you're thinking you might do roughly another $290 million in the back half of the year roughly. Would get you to about the [Indecipherable] it would be roughly equivalent, I guess, for the back half where you wouldn't really expand dramatically.
Gary Fields -- President, Chief Executive Officer & Director
That's what I -- that was my math.
David Derman -- Green Summit -- Analyst
I really appreciate you helping me.
Gary Fields -- President, Chief Executive Officer & Director
Yeah.
David Derman -- Green Summit -- Analyst
Yes, there's a lot -- obviously, you guys are ramping pretty rapidly. So it's helpful to understand. Well great, thank you.
Operator
[Operator Instructions] There are no further questions. I will now turn the call over to Gary Fields for any closing remarks.
Gary Fields -- President, Chief Executive Officer & Director
Just wanted to clarify one thing. In my prepared commentary, I said when talking about productivity, I said materials were down 1%. What I meant to say was our cost of goods sold, excluding our materials were down 1%. So just to clear up that one little thing there. All right. With that, we will close. We appreciate everyone's interest in AAON and calling in. We are looking forward to talking to you again in November for our third quarter results. Have a nice day.
Operator
[Operator Closing Remarks]
Duration: 43 minutes
Call participants:
Gary Fields -- President, Chief Executive Officer & Director
Rebecca Thompson -- Vice President of Finance, Chief Financial Officer & Treasurer
Norman H. Asbjornson -- Founder & Executive Chairman
Julio Romero -- Sidoti & Company -- Analyst
Jon Braatz -- Kansas City Capital -- Analyst
David Derman -- Green Summit -- Analyst
More AAON analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool owns shares of and recommends AAON. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON, inc (NASDAQ: AAON) Q2 2021 Earnings Call Aug 6, 2021, 9:00 a.m. Welcome to AAON, Inc. Second Quarter Sales and Earnings Call. 10 stocks we like better than AAON When our award-winning analyst team has a stock tip, it can pay to listen.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Gary Fields -- President, Chief Executive Officer & Director Rebecca Thompson -- Vice President of Finance, Chief Financial Officer & Treasurer Norman H. Asbjornson -- Founder & Executive Chairman Julio Romero -- Sidoti & Company -- Analyst Jon Braatz -- Kansas City Capital -- Analyst David Derman -- Green Summit -- Analyst More AAON analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AAON, inc (NASDAQ: AAON) Q2 2021 Earnings Call Aug 6, 2021, 9:00 a.m. Welcome to AAON, Inc. Second Quarter Sales and Earnings Call.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Gary Fields -- President, Chief Executive Officer & Director Rebecca Thompson -- Vice President of Finance, Chief Financial Officer & Treasurer Norman H. Asbjornson -- Founder & Executive Chairman Julio Romero -- Sidoti & Company -- Analyst Jon Braatz -- Kansas City Capital -- Analyst David Derman -- Green Summit -- Analyst More AAON analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AAON, inc (NASDAQ: AAON) Q2 2021 Earnings Call Aug 6, 2021, 9:00 a.m. Welcome to AAON, Inc. Second Quarter Sales and Earnings Call.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Gary Fields -- President, Chief Executive Officer & Director Rebecca Thompson -- Vice President of Finance, Chief Financial Officer & Treasurer Norman H. Asbjornson -- Founder & Executive Chairman Julio Romero -- Sidoti & Company -- Analyst Jon Braatz -- Kansas City Capital -- Analyst David Derman -- Green Summit -- Analyst More AAON analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AAON, inc (NASDAQ: AAON) Q2 2021 Earnings Call Aug 6, 2021, 9:00 a.m. Welcome to AAON, Inc. Second Quarter Sales and Earnings Call.
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10434.0
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2021-07-10 00:00:00 UTC
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Some Shareholders Feeling Restless Over AAON, Inc.'s (NASDAQ:AAON) P/E Ratio
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AAON
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https://www.nasdaq.com/articles/some-shareholders-feeling-restless-over-aaon-inc.s-nasdaq%3Aaaon-p-e-ratio-2021-07-10
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When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider AAON, Inc. (NASDAQ:AAON) as a stock to avoid entirely with its 44.9x P/E ratio. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.
With earnings growth that's inferior to most other companies of late, AAON has been relatively sluggish. One possibility is that the P/E is high because investors think this lacklustre earnings performance will improve markedly. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
NasdaqGS:AAON Price Based on Past Earnings July 10th 2021
If you'd like to see what analysts are forecasting going forward, you should check out our free report on AAON.
Is There Enough Growth For AAON?
The only time you'd be truly comfortable seeing a P/E as steep as AAON's is when the company's growth is on track to outshine the market decidedly.
Taking a look back first, we see that the company managed to grow earnings per share by a handy 9.8% last year. Pleasingly, EPS has also lifted 52% in aggregate from three years ago, partly thanks to the last 12 months of growth. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth.
Turning to the outlook, the next year should bring diminished returns, with earnings decreasing 2.4% as estimated by the three analysts watching the company. That's not great when the rest of the market is expected to grow by 17%.
In light of this, it's alarming that AAON's P/E sits above the majority of other companies. Apparently many investors in the company reject the analyst cohort's pessimism and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as these declining earnings are likely to weigh heavily on the share price eventually.
The Key Takeaway
Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
Our examination of AAON's analyst forecasts revealed that its outlook for shrinking earnings isn't impacting its high P/E anywhere near as much as we would have predicted. When we see a poor outlook with earnings heading backwards, we suspect the share price is at risk of declining, sending the high P/E lower. This places shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.
A lot of potential risks can sit within a company's balance sheet. Take a look at our free balance sheet analysis for AAON with six simple checks on some of these key factors.
It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a P/E ratio below 20x).
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our examination of AAON's analyst forecasts revealed that its outlook for shrinking earnings isn't impacting its high P/E anywhere near as much as we would have predicted. When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider AAON, Inc. (NASDAQ:AAON) as a stock to avoid entirely with its 44.9x P/E ratio. With earnings growth that's inferior to most other companies of late, AAON has been relatively sluggish.
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Our examination of AAON's analyst forecasts revealed that its outlook for shrinking earnings isn't impacting its high P/E anywhere near as much as we would have predicted. Take a look at our free balance sheet analysis for AAON with six simple checks on some of these key factors. When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider AAON, Inc. (NASDAQ:AAON) as a stock to avoid entirely with its 44.9x P/E ratio.
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When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider AAON, Inc. (NASDAQ:AAON) as a stock to avoid entirely with its 44.9x P/E ratio. With earnings growth that's inferior to most other companies of late, AAON has been relatively sluggish. NasdaqGS:AAON Price Based on Past Earnings July 10th 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on AAON.
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Is There Enough Growth For AAON? Our examination of AAON's analyst forecasts revealed that its outlook for shrinking earnings isn't impacting its high P/E anywhere near as much as we would have predicted. When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider AAON, Inc. (NASDAQ:AAON) as a stock to avoid entirely with its 44.9x P/E ratio.
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10435.0
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2021-06-17 00:00:00 UTC
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Validea Warren Buffett Strategy Daily Upgrade Report - 6/17/2021
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AAON
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https://www.nasdaq.com/articles/validea-warren-buffett-strategy-daily-upgrade-report-6-17-2021-2021-06-17
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The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Warren Buffett changed from 86% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Its products serve the commercial and industrial new construction and replacement markets. Its rooftop and condensing unit markets consist of units installed on commercial or industrial structures of less than 10 stories in height. Its air handling units, self-contained units, geothermal/water-source heat pumps, chillers, packaged outdoor mechanical rooms and coils are applicable to all sizes of commercial and industrial buildings. The replacement market consists of products installed to replace existing units/components that are worn or damaged.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of AAON, INC.
Full Guru Analysis for AAON
Full Factor Report for AAON
More details on Validea's Warren Buffett strategy
Warren Buffett Stock Ideas
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time.
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Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. AAON, INC. (AAON) is a mid-cap growth stock in the Misc.
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Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. AAON, INC. (AAON) is a mid-cap growth stock in the Misc.
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Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON More details on Validea's Warren Buffett strategy Warren Buffett Stock Ideas About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils.
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10436.0
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2021-06-01 00:00:00 UTC
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AAON, Inc. (AAON) Ex-Dividend Date Scheduled for June 02, 2021
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AAON
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https://www.nasdaq.com/articles/aaon-inc.-aaon-ex-dividend-date-scheduled-for-june-02-2021-2021-06-01
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AAON, Inc. (AAON) will begin trading ex-dividend on June 02, 2021. A cash dividend payment of $0.19 per share is scheduled to be paid on July 01, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAON has paid the same dividend.
The previous trading day's last sale of AAON was $66.25, representing a -18.46% decrease from the 52 week high of $81.25 and a 32.77% increase over the 52 week low of $49.90.
AAON is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. (ASML) and Applied Materials, Inc. (AMAT). AAON's current earnings per share, an indicator of a company's profitability, is $1.37. Zacks Investment Research reports AAON's forecasted earnings growth in 2021 as -12.08%, compared to an industry average of 24.5%.
For more information on the declaration, record and payment dates, visit the AAON Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports AAON's forecasted earnings growth in 2021 as -12.08%, compared to an industry average of 24.5%. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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AAON, Inc. (AAON) will begin trading ex-dividend on June 02, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAON has paid the same dividend.
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AAON, Inc. (AAON) will begin trading ex-dividend on June 02, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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AAON, Inc. (AAON) will begin trading ex-dividend on June 02, 2021. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAON has paid the same dividend.
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10437.0
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2021-05-11 00:00:00 UTC
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With EPS Growth And More, AAON (NASDAQ:AAON) Is Interesting
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AAON
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https://www.nasdaq.com/articles/with-eps-growth-and-more-aaon-nasdaq%3Aaaon-is-interesting-2021-05-11
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. And in their study titled Who Falls Prey to the Wolf of Wall Street?' Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in AAON (NASDAQ:AAON). While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
How Quickly Is AAON Increasing Earnings Per Share?
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years AAON grew its EPS by 15% per year. That growth rate is fairly good, assuming the company can keep it up.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. AAON reported flat revenue and EBIT margins over the last year. That's not a major concern but nor does it point to the long term growth we like to see.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
NasdaqGS:AAON Earnings and Revenue History May 11th 2021
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not check this interactive chart depicting future EPS estimates, for AAON?
Are AAON Insiders Aligned With All Shareholders?
I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. As a result, I'm encouraged by the fact that insiders own AAON shares worth a considerable sum. Notably, they have an enormous stake in the company, worth US$727m. That equates to 21% of the company, making insiders powerful and aligned with other shareholders. Very encouraging.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations between US$2.0b and US$6.4b, like AAON, the median CEO pay is around US$5.3m.
The CEO of AAON only received US$2.4m in total compensation for the year ending . That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally.
Does AAON Deserve A Spot On Your Watchlist?
As I already mentioned, AAON is a growing business, which is what I like to see. Earnings growth might be the main game for AAON, but the fun does not stop there. Boasting both modest CEO pay and considerable insider ownership, I'd argue this one is worthy of the watchlist, at least. What about risks? Every company has them, and we've spotted 1 warning sign for AAON you should know about.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NasdaqGS:AAON Earnings and Revenue History May 11th 2021 While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in AAON (NASDAQ:AAON). How Quickly Is AAON Increasing Earnings Per Share?
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If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in AAON (NASDAQ:AAON). How Quickly Is AAON Increasing Earnings Per Share? We can see that in the last three years AAON grew its EPS by 15% per year.
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If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in AAON (NASDAQ:AAON). How Quickly Is AAON Increasing Earnings Per Share? We can see that in the last three years AAON grew its EPS by 15% per year.
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If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in AAON (NASDAQ:AAON). As a result, I'm encouraged by the fact that insiders own AAON shares worth a considerable sum. How Quickly Is AAON Increasing Earnings Per Share?
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10438.0
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2021-05-07 00:00:00 UTC
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Aaon Inc (AAON) Q1 2021 Earnings Call Transcript
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https://www.nasdaq.com/articles/aaon-inc-aaon-q1-2021-earnings-call-transcript-2021-05-07
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Aaon Inc (NASDAQ: AAON)
Q1 2021 Earnings Call
May 6, 2021, 4:15 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon, ladies and gentlemen. Welcome to the AAON Inc. First Quarter Sales and Earnings Call. There will be a question-and-answer period after the management's brief presentation. This call will last approximately 45 minutes to an hour and I would now like to turn the meeting over to Mr. Gary Fields. Please go ahead, Mr. Fields.
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Gary Fields -- President & Chief Executive Officer
Good afternoon and welcome to our Q1, '21 earnings announcements.
I'd like to read a forward-looking disclaimer to begin with. To the extent, any statement presented herein deals with information that is not historical, including the outlook for the remainder of the year. Such statement is necessarily forward-looking and made pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings, including the annual report on Form 10-K and the quarterly report on Form 10-Q.
Joining me on the call today. Norm Asbjornson, our Executive Chairman, Rebecca Thompson, our newly promoted, Chief Financial Officer. Rebecca is going to open by reviewing our financial performance.
Rebecca, floor is yours.
Rebecca Thompson -- Chief Accounting Officer & Treasurer
Thank you, Gary. I'd like to begin by discussing the comparative results for the three months ended March 31, 2021 versus March 31, 2020. Net sales declined 15.8% to $158 million from $137.5 million. The first quarter of 2020 benefited from a high backlog that allowed the company to run at full capacity and set all-time record highs for net sales in the first quarter. The order intake began to slow in late 2020 and the company intentionally slowed production to keep its backlog at a healthy level. The year-over-year decline in net sales is primarily due to lost production days in January for planned maintenance and in February, due to impacts of bad weather. Our gross profit decreased 22.8% to $33.2 million from $42.9 million. As a percentage of sales, gross profit was 28.6% in the quarter just ended compared to 31% in the first quarter of 2020. The production days we lost in the quarter resulted in an unfavorable labor and overhead efficiencies, including the company's ability to absorb certain fixed cost increase in our gross profit. Selling, general, and administrative expenses decreased 3% to $14.7 million from $15.2 million in 2020. As a percentage of sales, SG&A increased to 12.7% of total sales in the quarter just ended from 11.1% in the first quarter of 2020.
The increase in SG&A as a percent of sales was due to an increase in insurance premiums and salaries and benefits. Income from operations decreased 33.6% to $18.5 million or 15.9% of sales from $27.8 million or 20.2% of sales in 2020. Our effective tax rate decreased to 11.4% from 21.5%. The unusually low tax rate was mainly related to a $1.8 million increase in our excess tax benefits associated with stock awards. The company's estimated annual 2021 effective tax rate, excluding discrete events, is expected to be approximately 27%. Net income decreased to $16.4 million or 14.1% sales compared to $21.9 million or 15.9% sales in the first quarter of 2020. Diluted earnings per share decreased by 26.8% to $0.30 per share from $0.41 per share.
Turning to the balance sheet, you'll see that we had a working capital balance of $178.7 million versus $162 million at December 31, 2019. Our unrestricted cash totaled $97 million at March 31, 2021. Our current is approximately 3.7 to 1. Our capital expenditures were $16.4 million for the quarter. We expect capital expenditures for the year to be approximately $70.7 million. The company has stock repurchases of $5.2 million during the 3 months ended March 31, 2021. Shareholders' equity per diluted share is $6.93 at March 31, 2021 compared to $6.67 at December 31, 2020.
I'd now like to turn the call back over to our CEO and President, Gary Fields.
Gary Fields -- President & Chief Executive Officer
Good afternoon. Overall, we're happy with the first quarter performance. It was in line with our expectations. Unsurprisingly, sales were down year-over-year. But compared to fourth quarter, if you'll recall, when we had those announcements, I said that a good benchmark accomplishment for Q1 would be if we essentially duplicated Q4. Because I had good visual of the backlog. So, we slowed the production down, probably the intentional portion was the longer shutdown around the holidays and that allowed us to get ahead on some pretty heavy-duty maintenance, but then we had to adverse weather. So, we ended up a little bit lower in revenue than what we actually thought we were going to do as a result of that weather shutdown too, but after the moderation in bookings in the end of 2020, the bookings began to pick up sharply right after the first of the year.
Now, we did have a price increase that went into effect on January 11, 2021. So that's not unusual for January or any time to pick up bookings cadence right ahead of a price increase, but the fact that the bookings increase stayed very robust throughout the quarter told me that it was genuine growth in bookings. Normally, the pull-forward from a price increase runs in the range of 30 to 45 days, and then it begins to kind of stabilize and see what the actual run rate is. So, I think, our bookings were up around 21% to 22% in Q1 of '21 versus Q1 of 20. That Q1 of 20, bear in mind was largely unaffected by coronavirus. Because the virus didn't really start slowing anything down until Q2. So, this is a very strong indicator of our bookings performance for '21 and that booking performance has continued on that same trajectory up until right now. I mean it's still continues. It hasn't slowed down at all. So, they are strengthening a fair amount.
We're looking at backlog, on May 1st, 2021, it was $104.5 million. You got to recognize that we've got production turned up pretty good too. We're maintaining a really nice balance here between production levels and backlog levels. Going back a few quarters, I said that the ideal backlog should be when we got our production capacity where we had planned it should be real close to $100 million. So, we're running along at just almost exactly the perfect backlog right now.
Replacement business at this time of year is always stronger than new construction. This year is taking shape same as what we expected. Lots to K through 12 schools are in the books right now being built. But on the new construction side, we're seeing a fair amount with data centers, large air condition warehouses for online retailers. Some of that stuff is really picked up and there is quite strong. So, the growth business, agricultural growth. Some of you might know, it is the cannabis business. It's what primarily what it is. Additional states approved some measure of cannabis legalization back in the fall and responding to that were more of these facilities being built in more states and we are one of the companies that provided best practice HVAC equipment for that industry several years ago now and we maintain a very strong position in that industry.
So Architectural Billing Index had several months. I don't have in front of me, but it's somewhere around 10 months that we're below the benchmark of 50, which said that they had lower architecture billings. This normally translates into a slowdown in business for us. While we're not seeing it quite like the historic. Because what causes billings to go down was not a normal activity. It was a very abnormal activity. What we have witnessed for certain and we've just concluded a sales conference with our leading representatives last week and validated this further. Numerous projects in early to mid-2020 were put on pause, various reasons, some they couldn't man the projects because of coronavirus, some states wouldn't allow them to work, some they just we're uncertain what the outcome was and they had the opportunity to hit pause.
While those projects were designed, the plans were on the shelf ready to be utilized. They have hit the go button on numerous of those projects and that doesn't necessarily generate an architectural billing. So, this architectural billing index doesn't have the exact correlation that it does in normal times. So, we've seen a lot of projects come off of the storage shelf, put into the market, and these have resulted in orders for us. I do believe, at some point in time, that we're going to see a bit of dip because of the architectural billing index, because they just didn't bill work for a while. It has to show up, but it's not showing up in its traditional down mode for the indicator. Architectural billing index has turned back positive the last month or two for sure. It's been above the benchmark of 50. I think this last one was when they close to 53, 52.8 or something like that. I think it was -- so, it's beginning to strengthen.
Our sales channel partners tell us that their pipeline is very robust and that the orders coming to us are going to be steady. We had anticipated maybe orders would peak sometime in Q2 going into Q3, causing Q4 to slow down as we've traditionally seen with our seasonality. We're not certain at this point in time if that's going to happen. Because the pipeline seems to be pretty robust at this point now. That could change at any moment. But this is what we're looking at today.
Looking at our various business segments, surprisingly, we've had some commercial and retail business that I frankly wasn't expecting. Grocery stores continue to build and update and remodel. Convenient stores continue to do the same thing. Office buildings have been a bit soft, although non-existent, medical and healthcare are definitely picking up. Go back early in the Coronavirus occurrence when it was identified that the rural communities, the outlying communities, were very deficient in their capacity for healthcare. A lot of those facilities have been mothballed or the region expanded may had not yet supported them with localized healthcare. We're seeing a very nice influx of business due to that.
Again, I had some customers in here just in the last day or two that we're focused on healthcare. These were end-user owners with their engineers and our sales channel partner representatives here and they're our West Coast operation and they were planning a lot of facilities and they were here to look at our equipment and they left here with a very favorable impression. I expect that to turn into something good for us.
In the education market, I already spoke to K to 12, is very, very strong. One of the things that we're seeing, there has been some bond issues recently in various regions, as recently as a year ago, some of these were challenging to get past another passing easily and one of the key things in these bond issues is updating the HVAC systems to be in accordance with best practices for virus mitigation indoor air quality. These are things that are very favorable for with the equipment that we manufacture.
Manufacturing has really not had any material change to it. We still continue to supply equipment for manufacturers. It might be slightly curtailed or curved but not much. On the lodging front, we're seeing some replacement business, but not so much new business. Not seeing a lot of new hotels built, a few here and there, but mostly we're seeing people pull forward on updating their HVAC systems. Again, they want to put these virus mitigation procedures into the units and the best way to do that oftentimes is update the unit.
That's kind of where we're at with our markets right now. Again, just to recap, grow facilities and large warehouse air conditioning, both of these are stronger than what we've seen in the recent past. Raw materials and component prices are definitely on the rise. We got a price increase in effect January 11. We have another one that goes into effect June 1. Each one of these was 4% across the board and these were put in place to manage our expected material and component price increases and we believe that we are in a favorable position to offset all of those material price increases.
We continue to improve productivity here in the Tulsa facility. We're operating now at about the most efficient, turning metal into profit that we've ever done. Very proud of this team. They've worked very hard and we share the team here that accomplished that with our other primary manufacturing facility in Longview. We got the new facility up and going about 60 days ago now. That's when we manufactured the first products in that and it has quite a ways to go to reach the efficiency that we believe were capable of, but the same team that helped identify all the practices that enabled this wonderful efficiency we have here in Tulsa, they go down on a weekly basis. In fact, there's a group of them there today and they go down on a weekly basis, a whole group of them does, and spend one day and help that team down there and we've seen very nice results from that and we look forward to continuous improvement throughout '21, in both revenue production and efficiency.
Both of those are going to improve in that facility throughout '21. I don't see us reaching the levels that we believe were capable of prior to the end of the year. Our Sales Rep Network, I mentioned earlier, we had a somewhat of a sales retreat last week, brought in a lot of the key sales channel leaders and the overall tenor of the meeting was very upbeat. They had very positive attitudes about the way we were doing business, the way we were supporting them, are shorter lead times. We very much appreciated. Obviously, we've seen an improvement in quality over the past few years. You see that the warranty expense has continued to go down and stabilize. It's been very stable for about a year and a half now. They recognize that that makes their jobs lot easier.
Bringing the lead times down to very attractive levels has afforded them opportunities that they wouldn't have otherwise and the overall tenor from the sales channel is very good and that's why I temper that going into this year, our expectations with Q1 would mirror Q4 of 20, but then that Bell's curve of Q2 and Q3 being up and Q4, maybe being back down a bit in relative terms. What they're lead me to believe is, if we do have a lower demand in Q4 in production, it might not be substantially as we first anticipated. It's a little stronger out there than maybe what we anticipated back in the fall, when we were doing our annual planning.
The water source heat pump business is pretty stagnant for us right now. The product and we've talked about this before, but the product that we have is very favorable for new construction. We continue to have a steady demand for that product. But it is not a good fit for retrofit when there is a couple of manufacturers that had a very dominant position for 20 plus years and their units are the ones that are wearing out, needing to be replaced. Our unit is not a wonderful direct replacement for it just due to its configuration. So we have designed a complete line of units to be 100% backward compatible with this huge installed base and we are optimizing that. It's probably well along toward completion and introduction. It will occur later this year and we believe that that will allow us to regain our growth position with water source heat pumps. Because the dominating factor of the water source heat pump market today is replacement, not new construction.
Our capex investments remain as we have talked about before, just a bit over $70 million. I believe that around $40 million of that $70 million is for accretive capacity and $30 million of that is for replacement, maintenance, and worn out things. I'm looking across the street today and beautiful things occurring. We have a crane over there, setting new AAON units on our eastside factory to be ahead of the curve and keep our employees well-conditioned and these all have the latest indoor air quality virus mitigation procedures installed in them.
Indoor air quality and virus mitigation procedures remain a topic of conversation with every customer that comes in contact with us today. I think that when [indecipherable] published their best practices guidelines last summer and revised it two or three times with little tweaks, that everyone took notice of that. So, all replacement and all new construction, they're at least giving it the credence of thinking what should we be doing and it looks to me like a great many of these projects that they are including some form, if not all forms, of the best practices for virus mitigation.
We're optimistic heading into the second quarter. We're in the second quarter now. Things are running smoothly. Orders are coming in the door nicely and we believe that we will be in our best ratios for absorption of overhead and where we had said we want to manage our gross profit between 28% and 32%, in Q1, we were just slightly above that 28%. I believe as we go through to second quarter here with better revenue, better production out the door, that we'll have better absorption and therefore we will be closer to that bullseye target of 30% or so.
With that I'm going to open up the call to any questions.
Questions and Answers:
Operator
Thank you, presenters. [Operator Instructions] We have our first question from Brent Thielman from D.A. Davidson. Your line is open.
Brent Tillman -- D.A. Davidson -- Analyst
Hey, good afternoon. Hey, Gary, you talked about the increase in the replacement orders and I was curious if you had any sense of how much of that could be related to some of the stuff you're just talking about the air upgrade, circulation, medical related upgrades for system? Is there any way to tell from that?
Gary Fields -- President & Chief Executive Officer
It's a little difficult to give a real highly qualified definitive number on that. You can have a sense of what's going on, Brent, and it looks to me like we're up 20% on bookings over last year and I would say that a significant amount of that is attributable to the indoor air quality, the virus mitigation procedures. Because last year, Q1 was a very nice bookings quarter, very much within our what we had anticipated and it had the normal replacement business for school. For this year to be up this substantially in bookings, it really feels like a big part of that accretive bookings number is related to the virus mitigation procedures and people getting on top of that.
Brent Tillman -- D.A. Davidson -- Analyst
Okay. Gary, I'm assuming this equipment has more bells and whistles to it in order to meet those sorts of standards. Is there a way for us to think about the higher average value per unit for something like that to address the sort of things that [indecipherable] is talking about?
Gary Fields -- President & Chief Executive Officer
Well, that's the wonderful thing about the AAON unit, these things are very inexpensive for us to add our units. What it has done is our units themselves are much better value to address these things. So, we don't have to do very much at all. So, for instance, our units are double-weld steel panel. The interior panel of our unit is solid steel and it's washable. So, you don't get bacteria and viruses attaching to a fiber glass line or like the majority of our competitors have. They don't have a steel liner and that's inherent in our units from 2 tons, all the way up to 240 tons.
The next thing is that our fan will overcome the additional pressure drop of these higher rated filters. While the difference say MERV-8 filter, which has been the most common filter used up until now, and MERV-13 filter, which is pretty much what everybody is wanted to do, the cost that filter is insignificant. Maybe in the 2-ton unit, it's $20 and in 100-ton unit, maybe it's $300. So it's not significant, but what is significant is that our unit was designed in it's fundamental design to overcome that additional pressure drop in a very efficient manner.
So, we can put these filters in. We can have this nice clean interior that doesn't collect bacteria and virus and allow it to accumulate. They can clean these units easily. Then when you start putting infrared lights in there, again you're talking in 2 ton to 10 unit, which are lot of these school units. That's their range. You're talking $125 on a several dollars unit. Now the one thing that does cost a little money and we're not seeing a lot of it, but we're seeing a little bit is the bipolar ionization. That seems to be a small percentage of our customers who want the better filtration. They want the lights and then they want the bipolar. It's a very small percentage that want to bipolar.
Brent Tillman -- D.A. Davidson -- Analyst
Okay, thanks for the color. Obviously, we see what's going on with steel and copper market out there. It sounds like you guys are getting ahead of it. The one question I had was any issues just getting the materials and components you need? It seems like there's a lot of supply chain challenges around the industry.
Gary Fields -- President & Chief Executive Officer
It's an interesting conversation. The Board met for our audit committee meeting a couple of days ago and every one of our Board Members was present, even though they're not all on that committee, they still read into it. There was a discussion about our inventory levels. Our inventory is running about 15% to 17% of revenue and if you look back historically, it was closer to 10% of revenue. They said, do we see a time when we might lower that inventory level and get back into that historic ratio and I said, gentlemen and ladies, we're blessed that we have this inventory. Because it's keeping us from having supply chain issues. We have an abundance of materials in here. We struggle for some small things from time to time, but my purchasing department says that while it's a little extra work, they've not caused us to miss any shipments or commitments for shipments because of that. This was kind of a blessing in disguise that we had this.
The other thing is, is that my pricing was more stable. Because we had a lot of these materials bought at a better price, so as things are escalating, one thing you're proud of as you got a big inventory of lower priced materials. I was able to get my price increase extended out further, June 1st, and I won't be buying materials at that higher price until after that price increase actually hits the floor. So, we're in real good shape with supply chain. I'm very proud of this team that we have here and how aggressive they are in doing that. For us, at this point in time at least, it has not been an issue.
Brent Tillman -- D.A. Davidson -- Analyst
Yeah. Very good. Last one from me would just be, Gary, when they can come back to the synopsis of what you're seeing out there in the market and it seems to be a true reacceleration in orders. I guess as we sit here today, I mean, it looks like go through 2Q, 3Q, we should see some favorable topline comparisons based on what you can see right now?
Gary Fields -- President & Chief Executive Officer
Yes. Q4 is coming somewhat into focus, now it's still just a little fuzzy. It's out there far enough that it's just a little fuzzy, so I don't want to absolutely commit that Q4 is not going to rollover on us. But again, Q4 of 20 was substantially lower. It kind of resumed that Bell's curve that we've had in the past. It was much lower than Q3. I don't remember the exact numbers now. You remember what the percentage reduction was? Anyhow, we're going to have favorable comps going forward. This Q1 was anticipated to be lower. It's very tough comp with Q1 of 20, because we had such a huge backlog coming into 20 and we knew this was going to be tough. We told you folks about it last quarter or even before that. Going forward, I think, we'll have some favorable comps, Brent.
Brent Tillman -- D.A. Davidson -- Analyst
Okay. Well, very good. Best of luck here in this quarter.
Gary Fields -- President & Chief Executive Officer
Thank you.
Operator
We have our next question from Julio Romero from Sidoti. Your line is open.
Gary Fields -- President & Chief Executive Officer
Good afternoon, Julio.
Julio Romero -- Sidoti & Company -- Analyst
Hey, good afternoon, Gary. Good afternoon, Rebecca.
Rebecca Thompson -- Chief Accounting Officer & Treasurer
Good afternoon.
Julio Romero -- Sidoti & Company -- Analyst
I guess just on that last question, want to just kind of stay on price cost and just thinking about price increases. Can you give us a refresher of maybe how often you reprice in a given year and do you think it's more likely than not that we see a few more price increases in the third and fourth quarter?
Gary Fields -- President & Chief Executive Officer
Well, our purchasing group keeps a 6-month forecast of material cost in front of me at all times. So, I have a rolling 6 months in front of me at all times. Again, going back to that higher inventory level that's what allowed me to have a good visual on 6 months out. I can respond quick enough that I can give our sales channel partners very good notice, so that they don't get trapped with bids at a price that they can't afford due to a price increase. Knowing the cadence, all those years I spent on their side of the table, I know of their activity from bid day until they place an order with us. So, I try and keep that in mind and then with our lead times now under very good control, I know exactly how long it takes to get from the date we book an order at the new price to get it on the plant floor and all of that is inside of the 6 months. So, every month, I'm looking at the 6-month outlook on these material cost. If there is any change within the month, then they raise the flag quicker, but otherwise, our normal activity is once a month. They furnish me an updated report that gives me the next 6 months. It's a calculus is to how we do this and knowing all of the timing events. Then we have this so that we can do it.
What I have as of today, doesn't give me any indication for the next 6 months that I would have another price increase. I have the one coming June 1st that covers everything that I know for the next 6 months plus. Because we announced that 2 to 3 months ago at the beginning March, a couple of months ago, that we announced that and so now I've got, let's say, 8 months runway that things are stable. There's been no changes in our outlook for the last 2 months. Everything that I got on this latest report was captured the same 2 months ago. To your point, could we see other price increases? As of today, I don't see the necessity for that, but this could easily change if we have another big vessel lodged in the Suez Canal and can't get something here. I mean, all kinds of things could happen quickly, but what I'm most proud about this team is that they now have very, very good data points that they utilize to provide the calculus for a necessity for a price increase. Hopefully, that answers your question.
Julio Romero -- Sidoti & Company -- Analyst
It does and I appreciate the color. Hopefully, we don't see another blockage in the Suez Canal. But you're right, anything like that could happen. One other thing you mentioned I think is you called out K through 12 is something that you're seeing picking up on the new construction side. What about on the replacement side, is that something that should pick up in the summer time? Some of the schools are out of session and are you seeing that in your bookings at this point in time?
Gary Fields -- President & Chief Executive Officer
We are, so K through 12, historically for us has been about 50% planned replace and 50% new. A lot of these bond issues, that we are beneficiary of, they will do some wing additions to schools to expand the school itself. They'd do some updating modernization of some existing schools and then they usually throw in building 2 or 3 new schools. We got an order and we're really thrilled with this. This particular school district has now been purchasing equipment from us on an annual basis for 13 years straight. They're in North Texas. They purchased 811 units to be installed in '21 and this time, they were about 70% replacement and 30% new construction and that's why I am saying, it looks like our replacement is a bit higher than our new construction ratio that we were historically seeing.
That's only one school district, but I've seen a multitude of others and I was made aware at this sales conference last week of numerous school districts that had bond issues from last fall until as recently as 2 weeks ago out to the voters and all of these are being unanimously approved and the format of a lot of these bond issues is more replacement than new construction. I think that favorability of our equipment for that kind of end user is well recognized. I believe that our percentage of replacement business versus new construction will continue to grow on the replacement side, even though this new construction market might be somewhat depressed. We're going to do real well with this replacement. We're already doing real well with it.
Julio Romero -- Sidoti & Company -- Analyst
Got it. I guess you talked about you expected sequentially next quarter's gross margins to be closer to the mid-point of your 28% to 32% targeted range, is that all kind of related to volume absorption or is there any sales mix component?
Gary Fields -- President & Chief Executive Officer
It's mostly absorption, Julio. It's mostly absorption. I mean you've got depreciation and things that are fixed cost. There're so many fixed cost that now our run rate, as we've added all of this production capability, it comes with a penalty called depreciation and we just put that new building in service in Longview. That one's hitting us pretty good on that line and we're yet to recognize the revenue from that new building that it's capable of. Now, I will say that the revenue from the Longview manufacturing has continued to grow as a result of the new building and as a result of the efficiency gains that this traveling team from Tulsa has been able to help collaborate with them on. Their latest monthly revenue numbers are up, they've had a 21% increase in revenue as a result of the improvement in technique and the improvement of the new building. That's what we've recognized already, 21% over the best month that they never had prior to these things occurring. We believe that there is a whole lot more to be had.
Bear in mind, we put over 100% more physical capability in place. You've got to get the people, you got to get them trained, you've got to get them to a level of efficiency, and that's why I say, it will take all year long to even approach what we dream is possible there, what we actually know is possible because of how we've done it before.
Julio Romero -- Sidoti & Company -- Analyst
Got it. Then just last question for me here is just on the SG&A is up as a percentage of sales, which was expected. I think you called that out on the fourth quarter call, but is that kind of 150, 160 basis point or so increase representative of what we should expect throughout the year?
Gary Fields -- President & Chief Executive Officer
Well, bear in mind that it could be higher actual dollar number and will be because of profit sharing, because that's in SG&A and recognized that in Q1. We just issued profit sharing announcement yesterday and it was lower than any quarter in 2020 and so we're looking for a comparable, favorable Q2 versus 20 favorable and should that occur, then the actual dollar spend on SG&A will be higher. Now, as a percent of revenue and I haven't done the math on that.
Rebecca Thompson -- Chief Accounting Officer & Treasurer
Yeah, I mean, I do think, it'll be up a little, mainly driven by our insurance premiums. Since those went up $2 million year-over-year. So that will be a driver of our SG&A. Then also looking forward into the second half of the year as the country opens back up, we anticipate our selling expenses in our travel will increase as well.
Gary Fields -- President & Chief Executive Officer
I'm proud to say, Rebecca, it's already started. Because I've had 3 major customer visits this week and I have one more today. We haven't had 3 customer visits in one week in over a year and these people are coming in 6, 8, 10 at a time and of course, we put them in hotels. We take them to dinner and there's expense with that. On top of the fact that we just had this sales retreat last week, we weren't able to have one in 2020, we had to cancel it.
Rebecca Thompson -- Chief Accounting Officer & Treasurer
Right. Sales expenses in 2020 were extremely low, just because we didn't have any of the normal activity that we will this year.
Julio Romero -- Sidoti & Company -- Analyst
Makes sense. Appreciate the color and thanks for taking the questions.
Operator
We have our next question from Jon Braatz from Kansas City Capital.
Jon Braatz -- Kansas City Capital -- Analyst
Good afternoon, Gary, Rebecca. A question, Gary, on the water source heat pump, when you started with the water source heat pump, the thought was that you're getting into a market it's maybe up to $500 million or something like that and the hope was to really take some share of that and I think last year, we did about $20 million in revenues in the water source heat pump. Where do you stand today in terms of market opportunity, market potential of the water source heat pump? It just hasn't been fulfilling the expectations that we had earlier, but where do you stand at this time in terms of what's possible?
Gary Fields -- President & Chief Executive Officer
Well, I haven't seen a summary of what today's current market dollar volume is. The number of units on AHRI are down a few percentage points. So, the dollars, have to be down too. Our number of units has been pretty steady. In fact, just the last month or two, it's grown just a bit and so we had validated a little over a 5% market share last year and I believe we're holding steady at 5 plus now and could be breaking through 6%. I won't see the final numbers on that for a few more days, but it's still in that mid-single digit range. It's not the 20% that we believed we were capable of obtaining. Our biggest miss on that business was our marketing intelligence was what people want and everyone we were listening to was expert in new construction and our sales channel just was not expert in replacement. We positioned this product very well for new construction, it's very much appreciated. We've had that steady business. It grew at a very brisk pace at one time. Then kind of leveled out and then the new construction market itself went down. For us, to stay steady, tells me we're getting an even higher percentage of the new construction business.
However, this replacement market, our sales channel partners were not well attuned to that market and so we've put in several support services to help them with that. We've hired 3 people in the last couple of years, 2 of them in the last year, they are expert in the aftermarket business. That's what their whole career has been. They're people I've known most of my career and have great respect for them. Bringing those resources and to help the sales channel partners develop this, all the sales channel partners are with very little exception are dedicated to an aftermarket strategy and they are putting their resources behind this and so I believe that when our new product that is designed with the aftermarket in mind, the replacement market, when we get that product introduced to them, I believe, will resume growth and we'll catch up relatively quickly to the expectations.
Again, we made a mistake there. We admit that mistake. I'll tell you, there is no sin in my book for making mistakes. There is a sin in my book of substantial note of not admitting them and not correcting them. While we've admitted the mistake, we've corrected the mistake and we're on the cusp of introducing that correction and seeing exactly how well that performs.
Jon Braatz -- Kansas City Capital -- Analyst
Okay. With those changes, that correction, do you think as you look back at 20% market penetration, do you think that's still a reasonable possibility?
Gary Fields -- President & Chief Executive Officer
It's absolutely reasonable. There is nothing changed in my mind on that. The reason is that the sales channel partners, the commitment they've made and the success that they've had thus far, tells me that it's very much in our grasp.
Jon Braatz -- Kansas City Capital -- Analyst
Okay. Then the timeline, when do you think we might see some evidence of those gains?
Gary Fields -- President & Chief Executive Officer
We're not anticipating having a material impact on the number of units going out the door until Q4. That might even be just a little early to be very optimistic about. The new product will be available on Q4. There are a lot of them that have said that they want to have an immediate stock in their inventory of that product, because they think that's a good investment for them. So, we would very likely be building units that we sell to them. We don't inventory of them ourselves. We sell those units to them. We could be filling their stock in Q4 and that's why I think there is a good opportunity to increase our number of units substantially and then there could be a little low because they stopped all their warehouses and then they've got to go out there and get their momentum going. So, it could be that we have a kind of the in-rush Q4, a little bit of a low Q1, and then we resume a good steady pace of business Q2 next year. If we look at the year 2022 in whole, then we can look for some good solid double-digit percentages of growth like what we had the first 2 or 3 years that we were in this business. I mean the first 3 years, we were like a 100% growth year-over-year and then 77% and 57% and so we've seen how we can do that and we can supply that
A major difference now Joh, is a lot of our early on time was learning how to use this manufacturing facility. So, now we've got a few years of using it. This product is a different configuration, but it's not a different manufacturing process.
Jon Braatz -- Kansas City Capital -- Analyst
Okay. When you look at it, I don't know if you can look at it in isolation, is up until this point is the water source heat pump paying its way?
Gary Fields -- President & Chief Executive Officer
No. That'll be foolish to say it was. When I look at it, no, it's not paying its way yet. I mean it is profitable, it's not a loser. But it is not at benchmark margins. Because we don't have the volume to offset the depreciation cost and the fixed cost of that facility. If we were to double the volume, we would triple the percentage of net profit. Because a lot of that profit comes at no additional fixed cost expense. So, we have to double that volume to get these things close to benchmark margin levels. The good thing about it now is even though the margin percentage is lower. It's not that big of a volume to where it's that big of a burden.
The other thing that I'll point out is when I came here, I had 30 years of experience in the sales channel. I've been selling AAON since 1990 and I did a pretty good job of it and so did my company, but because we were so mature with our presentation of AAON equipment in the markets that I really could visualize what the growth potential for those legacy products was in reference to my experience in my company.
While as I began consulting for AAON, I began to realize that substantial number of the sales channel partners were nowhere near that mature in their markets. But I didn't know exactly how that was going to come along and it's come along very nicely. My efforts in consulting back there in 13 to early16, those have all manifest themselves. The changes that I've made in the sales channel since I came on board here, the first of 16, those manifested themselves.
When I first came here, we had 6 regions and the different performance versus expectations was the lowest region was only reaching 65% of expectations. The highest region was about 5% over expectations. Today, the range runs from 122% of expectations to 129% of expectations at this point in time. It is very much, very uniformed effort and results across all of North America right now. This sales channel improvement that we have been working on going all the way back. I mean, Norm worked on it before me but I put my effort into it, starting in 2013. I mean it has paid off.
We have a good uniformed performing group across North America and by the way, every one of them is growing.
Jon Braatz -- Kansas City Capital -- Analyst
Okay. That's it, Gary. Thank you very much.
Gary Fields -- President & Chief Executive Officer
Thank you, Jon.
Operator
[Operator Instructions]
Duration: 53 minutes
Call participants:
Gary Fields -- President & Chief Executive Officer
Rebecca Thompson -- Chief Accounting Officer & Treasurer
Brent Tillman -- D.A. Davidson -- Analyst
Julio Romero -- Sidoti & Company -- Analyst
Jon Braatz -- Kansas City Capital -- Analyst
More AAON analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool owns shares of and recommends AAON. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We have a crane over there, setting new AAON units on our eastside factory to be ahead of the curve and keep our employees well-conditioned and these all have the latest indoor air quality virus mitigation procedures installed in them. Aaon Inc (NASDAQ: AAON) Q1 2021 Earnings Call May 6, 2021, 4:15 p.m. Welcome to the AAON Inc. First Quarter Sales and Earnings Call.
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Davidson -- Analyst Julio Romero -- Sidoti & Company -- Analyst Jon Braatz -- Kansas City Capital -- Analyst More AAON analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaon Inc (NASDAQ: AAON) Q1 2021 Earnings Call May 6, 2021, 4:15 p.m. Welcome to the AAON Inc. First Quarter Sales and Earnings Call.
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Gary Fields -- President & Chief Executive Officer Well, that's the wonderful thing about the AAON unit, these things are very inexpensive for us to add our units. Aaon Inc (NASDAQ: AAON) Q1 2021 Earnings Call May 6, 2021, 4:15 p.m. Welcome to the AAON Inc. First Quarter Sales and Earnings Call.
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Davidson -- Analyst Julio Romero -- Sidoti & Company -- Analyst Jon Braatz -- Kansas City Capital -- Analyst More AAON analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaon Inc (NASDAQ: AAON) Q1 2021 Earnings Call May 6, 2021, 4:15 p.m. Welcome to the AAON Inc. First Quarter Sales and Earnings Call.
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10439.0
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2021-04-30 00:00:00 UTC
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AAON Crosses Below Key Moving Average Level
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AAON
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https://www.nasdaq.com/articles/aaon-crosses-below-key-moving-average-level-2021-04-30
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $65.61, changing hands as low as $65.22 per share. AAON, Inc. shares are currently trading off about 3.2% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $65.61, changing hands as low as $65.22 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41. AAON, Inc. shares are currently trading off about 3.2% on the day.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $65.61, changing hands as low as $65.22 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41. AAON, Inc. shares are currently trading off about 3.2% on the day.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $65.61, changing hands as low as $65.22 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41. AAON, Inc. shares are currently trading off about 3.2% on the day.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $65.61, changing hands as low as $65.22 per share. AAON, Inc. shares are currently trading off about 3.2% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41.
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10440.0
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2021-04-30 00:00:00 UTC
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AAON Enters Oversold Territory
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AAON
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https://www.nasdaq.com/articles/aaon-enters-oversold-territory-2021-04-30
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $65.22 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 61.5. A bullish investor could look at AAON's 28.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares:
Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $65.22 per share. A bullish investor could look at AAON's 28.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $65.22 per share. A bullish investor could look at AAON's 28.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $65.22 per share. A bullish investor could look at AAON's 28.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41.
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In trading on Friday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $65.22 per share. A bullish investor could look at AAON's 28.0 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $44.01 per share, with $81.25 as the 52 week high point — that compares with a last trade of $65.41.
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10441.0
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2021-03-11 00:00:00 UTC
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Have Insiders Sold AAON, Inc. (NASDAQ:AAON) Shares Recently?
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AAON
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https://www.nasdaq.com/articles/have-insiders-sold-aaon-inc.-nasdaq%3Aaaon-shares-recently-2021-03-11
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Anyone interested in AAON, Inc. (NASDAQ:AAON) should probably be aware that the Lead Independent Director, Paul Lackey, recently divested US$150k worth of shares in the company, at an average price of US$75.00 each. However, the silver lining is that the sale only reduced their total holding by 2.8%, so we're hesitant to read anything much into it, on its own.
AAON Insider Transactions Over The Last Year
The insider, Mikel Crews, made the biggest insider sale in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$59.60 each. That means that an insider was selling shares at slightly below the current price (US$73.36). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 36% of Mikel Crews's holding.
AAON insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
NasdaqGS:AAON Insider Trading Volume March 12th 2021
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does AAON Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. AAON insiders own about US$816m worth of shares (which is 21% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The AAON Insider Transactions Indicate?
Insiders haven't bought AAON stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since AAON is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that AAON has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
Of course AAON may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At Simply Wall St, we've found that AAON has 2 warning signs (1 is a bit unpleasant!) Anyone interested in AAON, Inc. (NASDAQ:AAON) should probably be aware that the Lead Independent Director, Paul Lackey, recently divested US$150k worth of shares in the company, at an average price of US$75.00 each. AAON Insider Transactions Over The Last Year The insider, Mikel Crews, made the biggest insider sale in the last 12 months.
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AAON Insider Transactions Over The Last Year The insider, Mikel Crews, made the biggest insider sale in the last 12 months. NasdaqGS:AAON Insider Trading Volume March 12th 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Anyone interested in AAON, Inc. (NASDAQ:AAON) should probably be aware that the Lead Independent Director, Paul Lackey, recently divested US$150k worth of shares in the company, at an average price of US$75.00 each.
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AAON Insider Transactions Over The Last Year The insider, Mikel Crews, made the biggest insider sale in the last 12 months. NasdaqGS:AAON Insider Trading Volume March 12th 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Anyone interested in AAON, Inc. (NASDAQ:AAON) should probably be aware that the Lead Independent Director, Paul Lackey, recently divested US$150k worth of shares in the company, at an average price of US$75.00 each.
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AAON insiders own about US$816m worth of shares (which is 21% of the company). So What Do The AAON Insider Transactions Indicate? Insiders haven't bought AAON stock in the last three months, but there was some selling.
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10442.0
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2021-03-02 00:00:00 UTC
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Validea Warren Buffett Strategy Daily Upgrade Report - 3/2/2021
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AAON
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https://www.nasdaq.com/articles/validea-warren-buffett-strategy-daily-upgrade-report-3-2-2021-2021-03-02
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The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Warren Buffett changed from 0% to 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Its products serve the commercial and industrial new construction and replacement markets. Its rooftop and condensing unit markets consist of units installed on commercial or industrial structures of less than 10 stories in height. Its air handling units, self-contained units, geothermal/water-source heat pumps, chillers, packaged outdoor mechanical rooms and coils are applicable to all sizes of commercial and industrial buildings. The replacement market consists of products installed to replace existing units/components that are worn or damaged.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: NEUTRAL
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of AAON, INC.
Full Guru Analysis for AAON
Full Factor Report for AAON
AFLAC INCORPORATED (AFL) is a large-cap value stock in the Insurance (Accident & Health) industry. The rating according to our strategy based on Warren Buffett changed from 72% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Aflac Incorporated is a business holding company. The Company is involved in supplemental health and life insurance, which is marketed and administered through its subsidiary, American Family Life Assurance Company of Columbus (Aflac). The Company's insurance business consists of two segments: Aflac Japan and Aflac U.S. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
RETURN ON EQUITY: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of AFLAC INCORPORATED
Full Guru Analysis for AFL
Full Factor Report for AFL
WALKER & DUNLOP, INC. (WD) is a mid-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Warren Buffett changed from 63% to 92% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Walker & Dunlop, Inc. is a holding company, which conducts its operations through Walker & Dunlop, LLC. The Company offers commercial real estate services and finance. It focuses on multifamily lending, debt brokerage, and property sales. The Company originates, sells and services a range of multifamily and other commercial real estate financing products and provides multifamily property sales brokerage services, and engages in commercial real estate investment management activities. It originates and sells multifamily loans through the programs of federal national mortgage association, federal home loan mortgage corporation and housing and urban development (HUD). It brokers and services loans for several life insurance companies, commercial banks, commercial mortgage backed securities (CMBS) issuers and other institutional investors. It also underwrites, services and asset-manages interim loans.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
RETURN ON EQUITY: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: FAIL
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: NEUTRAL
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of WALKER & DUNLOP, INC.
Full Guru Analysis for WD
Full Factor Report for WD
NIC INC. (EGOV) is a mid-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett changed from 70% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NIC Inc. is a provider of digital government services that help governments use technology to provide services to businesses and citizens. It operates through Outsourced Portals segment, and offers its services through two channels: primary outsourced portal businesses, and software and services businesses. In the primary outsourced portal businesses, it enters into contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. Its software and services businesses include its subsidiaries that provide software development and payment processing services, other than outsourced portal services, to state and local governments, as well as federal agencies. Its outsourced portal businesses include interactive government services (IGS), driver history records (DHR), Portal software development and services and Portal management. It also offers technology platform for government regulation of the cannabis and hemp industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of NIC INC.
Full Guru Analysis for EGOV
Full Factor Report for EGOV
More details on Validea's Warren Buffett strategy
Warren Buffett Stock Ideas
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON AFLAC INCORPORATED (AFL) is a large-cap value stock in the Insurance (Accident & Health) industry.
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Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON AFLAC INCORPORATED (AFL) is a large-cap value stock in the Insurance (Accident & Health) industry.
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Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON AFLAC INCORPORATED (AFL) is a large-cap value stock in the Insurance (Accident & Health) industry.
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Detailed Analysis of AAON, INC. Full Guru Analysis for AAON Full Factor Report for AAON AFLAC INCORPORATED (AFL) is a large-cap value stock in the Insurance (Accident & Health) industry. AAON, INC. (AAON) is a mid-cap growth stock in the Misc. Company Description: AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils.
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10443.0
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2021-01-09 00:00:00 UTC
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My Best Industrial Stock for 2021
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AAON
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https://www.nasdaq.com/articles/my-best-industrial-stock-for-2021-2021-01-09
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nan
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nan
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It's the time of year to reflect and pick out some investment ideas for 2021. My choice in the industrial sector is Carrier (NYSE: CARR). The stock had a remarkable year in 2020, rising by a whopping 214% after it began trading as an independent company in early April, but I think there's more to come in 2021. Here's why.
Up 214% in 2020 but still a good value
Just because a stock has gone up a lot it doesn't mean it isn't a good value. Indeed, Carrier still looks like a good value on a relative and absolute basis. For example, here's Carrier compared to its heating, ventilation, air conditioning, and refrigeration (HVACR) peer group.
Image source: Getty Images.
In terms of both price-to-free cash flow (FCF) and enterprise value (market cap plus net debt)-to-earnings before interest, taxation, depreciation, and amortization (EBITDA), Carrier remains the cheapest stock in its peer group. For reference, its closest peer among the group is Trane Technologies (NYSE: TT).
Data by YCharts
Carrier's plan for 2022
To understand the industrial company's absolute valuation you have to appreciate the changes its made since the company was separated from the former United Technologies. One of the key initiatives is its so-called "Carrier 700 program." The plan is to cut Carrier's annual costs by $700 million by 2022. The cost savings will come from a combination of supply chain procurement improvements (shifting from high cost to low cost supplies), reducing factory costs by increasing the use of automation, and lowering general and administrative costs by sharing services.
The program is obviously progressing well because it started out as a $600 million plan, only to be increased to $700 million in the third-quarter earnings call.
The cost saving improvements will finish in 2022 and contribute to the company's EBITDA and FCF margin expansion in that time. As such, Wall Street analysts expect Carrier to generate $1.75 billion in FCF in 2022. Based on the current market cap of $32.1 billon, that would put Carrier on a price-to-FCF multiple of 18.3 times. Again, this compares favorably with Trane's expected price-to-FCF multiple of 24 times. Whichever way you look at it, Carrier is a good value.
METRIC
2020 EST.
2021 EST.
2022 EST.
Net sales
$17.31 billion
$18.27 billion
$19.27 billion
EBITDA
$2.58 billion
$2.9 billion
$3.24 billion
EBITDA margin
14.9%
15.9%
16.8%
Free cash flow
$1.53 billion
$1.53 billion
$1.75 billion
Free cash flow margin
8.8%
8.4%
9.1%
Data source: marketscreener.com, author's analysis.
Near-term growth prospects
Carrier has very good momentum going into 2021. Overall sales rose 4% in the third quarter, but the really good news comes from orders growth in its key HVAC segment. For reference, the HVAC segment generated $1.6 billion in profit in 2019 compared to $0.7 billion from fire and safety equipment, and $0.5 billion from refrigeration.
The residential HVAC market has been hot this year due to stay-at-home measures, which have encouraged people to spend more money on their homes. Indeed, Carrier's light and residential HVAC orders rose 60% year over year in the third quarter and offset flat commercial HVAC orders growth, leading to 25% growth in overall HVAC orders.
The strong growth in orders led management to raise guidance, again, in the third quarter.
CARRIER FULL-YEAR GUIDANCE
AS OF OCT-2020
AS OF JUL-2020
AS OF MAY-2020
Sales
$17.3 billion
$15.5 billion to $17 billion
$15 billion to $17 billion
Adjusted operating profit
$2.2 billion
$1.8 billion to $2 billion
$1.7 billion to $2 billion
Free cash flow
$1.5 billion
At least $1.1 billion
More than $1 billion
Data source: Carrier presentations.
The positive news is confirmed when looking at the numbers from HVACR distributor Watsco (NYSE: WSO). The company is a key partner of Carrier and the two have joint ventures together. In fact, Watsco makes around 62% of its purchases from Carrier.
As such, Carrier investors will be pleased to hear that Watsco reported 10% sales growth in HVAC in the third quarter with 19% growth in U.S. residential products -- suggesting more orders are likely for Carrier in the future. In addition, Watsco recently announced it has passed $5 billion in sales in 2020 -- slightly ahead of the analyst consensus.
Long-term considerations
Over the long term, all the usual arguments for the HVAC industry still apply. Rising incomes in the emerging world usually means increased demand for HVAC, while the global trend toward urbanization continues apace. Moreover, the higher-quality HVAC suppliers like Trane and Carrier have growth opportunities through adopting digital technologies in their solutions.
Image source: Getty Images.
Finally, the pandemic is likely to create increased demand for well-ventilated buildings, and Carrier's refrigeration solutions are set to benefit from COVID-19 vaccine distribution, particularly if it requires countries to build out cold chain infrastructure.
Carrier is a buy for 2021
All told, the stock is favorably positioned and attractively valued, with plenty of near-term and long-term earnings drivers in place. While the stock isn't going to have the same year as it did in 2020, I think there's still significant potential for gains in 2021. That might suit investors in a marketplace that is looking overvalued right now.
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Lee Samaha owns shares of Trane Technologies plc. The Motley Fool owns shares of and recommends AAON and Watsco. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Motley Fool owns shares of and recommends AAON and Watsco. In terms of both price-to-free cash flow (FCF) and enterprise value (market cap plus net debt)-to-earnings before interest, taxation, depreciation, and amortization (EBITDA), Carrier remains the cheapest stock in its peer group. Rising incomes in the emerging world usually means increased demand for HVAC, while the global trend toward urbanization continues apace.
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The Motley Fool owns shares of and recommends AAON and Watsco. Again, this compares favorably with Trane's expected price-to-FCF multiple of 24 times. $2.58 billion $2.9 billion $3.24 billion EBITDA margin 14.9% 15.9% 16.8% Free cash flow $1.53 billion $1.53 billion $1.75 billion Free cash flow margin 8.8% 8.4% 9.1% Data source: marketscreener.com, author's analysis.
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The Motley Fool owns shares of and recommends AAON and Watsco. $2.58 billion $2.9 billion $3.24 billion EBITDA margin 14.9% 15.9% 16.8% Free cash flow $1.53 billion $1.53 billion $1.75 billion Free cash flow margin 8.8% 8.4% 9.1% Data source: marketscreener.com, author's analysis. Indeed, Carrier's light and residential HVAC orders rose 60% year over year in the third quarter and offset flat commercial HVAC orders growth, leading to 25% growth in overall HVAC orders.
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The Motley Fool owns shares of and recommends AAON and Watsco. Overall sales rose 4% in the third quarter, but the really good news comes from orders growth in its key HVAC segment. Indeed, Carrier's light and residential HVAC orders rose 60% year over year in the third quarter and offset flat commercial HVAC orders growth, leading to 25% growth in overall HVAC orders.
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10444.0
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2020-11-24 00:00:00 UTC
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AAON, Inc. (AAON) Ex-Dividend Date Scheduled for November 25, 2020
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AAON
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https://www.nasdaq.com/articles/aaon-inc.-aaon-ex-dividend-date-scheduled-for-november-25-2020-2020-11-24
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nan
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nan
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AAON, Inc. (AAON) will begin trading ex-dividend on November 25, 2020. A cash dividend payment of $0.19 per share is scheduled to be paid on December 18, 2020. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 18.75% increase over prior dividend payment.
The previous trading day's last sale of AAON was $66, representing a -4.91% decrease from the 52 week high of $69.41 and a 63.04% increase over the 52 week low of $40.48.
AAON is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc (TMO) and ASML Holding N.V. (ASML). AAON's current earnings per share, an indicator of a company's profitability, is $1.46. Zacks Investment Research reports AAON's forecasted earnings growth in 2020 as 38.24%, compared to an industry average of 3.2%.
For more information on the declaration, record and payment dates, visit the AAON Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports AAON's forecasted earnings growth in 2020 as 38.24%, compared to an industry average of 3.2%. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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AAON, Inc. (AAON) will begin trading ex-dividend on November 25, 2020. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of AAON was $66, representing a -4.91% decrease from the 52 week high of $69.41 and a 63.04% increase over the 52 week low of $40.48.
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AAON, Inc. (AAON) will begin trading ex-dividend on November 25, 2020. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. AAON, Inc. (AAON) will begin trading ex-dividend on November 25, 2020. The previous trading day's last sale of AAON was $66, representing a -4.91% decrease from the 52 week high of $69.41 and a 63.04% increase over the 52 week low of $40.48.
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10445.0
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2020-11-23 00:00:00 UTC
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Ex-Dividend Reminder: AAON, Fortive and Huntington Ingalls Industries
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AAON
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-aaon-fortive-and-huntington-ingalls-industries-2020-11-23
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 11/25/20, AAON, Inc. (Symbol: AAON), Fortive Corp (Symbol: FTV), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. AAON, Inc. will pay its semi-annual dividend of $0.19 on 12/18/20, Fortive Corp will pay its quarterly dividend of $0.07 on 12/28/20, and Huntington Ingalls Industries, Inc. will pay its quarterly dividend of $1.14 on 12/11/20. As a percentage of AAON's recent stock price of $65.72, this dividend works out to approximately 0.29%, so look for shares of AAON, Inc. to trade 0.29% lower — all else being equal — when AAON shares open for trading on 11/25/20. Similarly, investors should look for FTV to open 0.10% lower in price and for HII to open 0.71% lower, all else being equal.
Below are dividend history charts for AAON, FTV, and HII, showing historical dividends prior to the most recent ones declared.
AAON, Inc. (Symbol: AAON):
Fortive Corp (Symbol: FTV):
Huntington Ingalls Industries, Inc. (Symbol: HII):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.58% for AAON, Inc., 0.39% for Fortive Corp, and 2.84% for Huntington Ingalls Industries, Inc..
In Monday trading, AAON, Inc. shares are currently up about 0.4%, Fortive Corp shares are up about 0.9%, and Huntington Ingalls Industries, Inc. shares are up about 1.3% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/25/20, AAON, Inc. (Symbol: AAON), Fortive Corp (Symbol: FTV), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. If they do continue, the current estimated yields on annualized basis would be 0.58% for AAON, Inc., 0.39% for Fortive Corp, and 2.84% for Huntington Ingalls Industries, Inc.. AAON, Inc. will pay its semi-annual dividend of $0.19 on 12/18/20, Fortive Corp will pay its quarterly dividend of $0.07 on 12/28/20, and Huntington Ingalls Industries, Inc. will pay its quarterly dividend of $1.14 on 12/11/20.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/25/20, AAON, Inc. (Symbol: AAON), Fortive Corp (Symbol: FTV), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. AAON, Inc. will pay its semi-annual dividend of $0.19 on 12/18/20, Fortive Corp will pay its quarterly dividend of $0.07 on 12/28/20, and Huntington Ingalls Industries, Inc. will pay its quarterly dividend of $1.14 on 12/11/20. AAON, Inc. (Symbol: AAON): Fortive Corp (Symbol: FTV): Huntington Ingalls Industries, Inc. (Symbol: HII): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/25/20, AAON, Inc. (Symbol: AAON), Fortive Corp (Symbol: FTV), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends. AAON, Inc. will pay its semi-annual dividend of $0.19 on 12/18/20, Fortive Corp will pay its quarterly dividend of $0.07 on 12/28/20, and Huntington Ingalls Industries, Inc. will pay its quarterly dividend of $1.14 on 12/11/20. AAON, Inc. (Symbol: AAON): Fortive Corp (Symbol: FTV): Huntington Ingalls Industries, Inc. (Symbol: HII): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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As a percentage of AAON's recent stock price of $65.72, this dividend works out to approximately 0.29%, so look for shares of AAON, Inc. to trade 0.29% lower — all else being equal — when AAON shares open for trading on 11/25/20. If they do continue, the current estimated yields on annualized basis would be 0.58% for AAON, Inc., 0.39% for Fortive Corp, and 2.84% for Huntington Ingalls Industries, Inc.. Looking at the universe of stocks we cover at Dividend Channel, on 11/25/20, AAON, Inc. (Symbol: AAON), Fortive Corp (Symbol: FTV), and Huntington Ingalls Industries, Inc. (Symbol: HII) will all trade ex-dividend for their respective upcoming dividends.
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10446.0
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2020-11-14 00:00:00 UTC
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Don't Ignore The Fact That This Insider Just Sold Some Shares In AAON, Inc. (NASDAQ:AAON)
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AAON
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https://www.nasdaq.com/articles/dont-ignore-the-fact-that-this-insider-just-sold-some-shares-in-aaon-inc.-nasdaq%3Aaaon-2020
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nan
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nan
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We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$195k worth of stock at US$65.00 per share. However, the silver lining is that the sale only reduced their total holding by 4.1%, so we're hesitant to read anything much into it, on its own.
AAON Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Mikel Crews, for US$1.3m worth of shares, at about US$59.60 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$65.09. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 36% of Mikel Crews's holding.
AAON insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NasdaqGS:AAON Insider Trading Volume November 14th 2020
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does AAON Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. AAON insiders own 22% of the company, currently worth about US$742m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About AAON Insiders?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, AAON makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in AAON.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON insiders own 22% of the company, currently worth about US$742m based on the recent share price. We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$195k worth of stock at US$65.00 per share. AAON Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the insider, Mikel Crews, for US$1.3m worth of shares, at about US$59.60 per share.
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We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$195k worth of stock at US$65.00 per share. Does AAON Boast High Insider Ownership? AAON Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the insider, Mikel Crews, for US$1.3m worth of shares, at about US$59.60 per share.
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AAON Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the insider, Mikel Crews, for US$1.3m worth of shares, at about US$59.60 per share. NasdaqGS:AAON Insider Trading Volume November 14th 2020 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$195k worth of stock at US$65.00 per share.
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AAON insiders didn't buy any shares over the last year. AAON insiders own 22% of the company, currently worth about US$742m based on the recent share price. We'd be surprised if AAON, Inc. (NASDAQ:AAON) shareholders haven't noticed that the Lead Independent Director, Paul Lackey, recently sold US$195k worth of stock at US$65.00 per share.
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10447.0
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2020-11-07 00:00:00 UTC
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AAON, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
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AAON
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https://www.nasdaq.com/articles/aaon-inc.-just-beat-analyst-forecasts-and-analysts-have-been-updating-their-predictions
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nan
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nan
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AAON, Inc. (NASDAQ:AAON) just released its latest third-quarter results and things are looking bullish. AAON delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$135m, some 13% above indicated. Statutory EPS were US$0.38, an impressive 25% ahead of forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AAON after the latest results.
NasdaqGS:AAON Earnings and Revenue Growth November 7th 2020
Taking into account the latest results, the current consensus, from the dual analysts covering AAON, is for revenues of US$482.0m in 2021, which would reflect a noticeable 7.4% reduction in AAON's sales over the past 12 months. Statutory earnings per share are expected to descend 19% to US$1.20 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$475.0m and earnings per share (EPS) of US$1.22 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
With no major changes to earnings forecasts, the consensus price target fell 18% to US$35.00, suggesting that the analysts might have previously been hoping for an earnings upgrade.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 7.4%, a significant reduction from annual growth of 7.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.8% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - AAON is expected to lag the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of AAON's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for AAON going out as far as 2022, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for AAON (1 makes us a bit uncomfortable!) that you need to be mindful of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of AAON's future valuation. AAON, Inc. (NASDAQ:AAON) just released its latest third-quarter results and things are looking bullish. AAON delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$135m, some 13% above indicated.
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NasdaqGS:AAON Earnings and Revenue Growth November 7th 2020 Taking into account the latest results, the current consensus, from the dual analysts covering AAON, is for revenues of US$482.0m in 2021, which would reflect a noticeable 7.4% reduction in AAON's sales over the past 12 months. AAON, Inc. (NASDAQ:AAON) just released its latest third-quarter results and things are looking bullish. AAON delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$135m, some 13% above indicated.
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Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AAON after the latest results. NasdaqGS:AAON Earnings and Revenue Growth November 7th 2020 Taking into account the latest results, the current consensus, from the dual analysts covering AAON, is for revenues of US$482.0m in 2021, which would reflect a noticeable 7.4% reduction in AAON's sales over the past 12 months. AAON, Inc. (NASDAQ:AAON) just released its latest third-quarter results and things are looking bullish.
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Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AAON after the latest results. AAON, Inc. (NASDAQ:AAON) just released its latest third-quarter results and things are looking bullish. AAON delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$135m, some 13% above indicated.
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10448.0
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2020-11-05 00:00:00 UTC
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Aaon Inc (AAON) Q3 2020 Earnings Call Transcript
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-q3-2020-earnings-call-transcript-2020-11-06
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nan
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nan
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Image source: The Motley Fool.
Aaon Inc (NASDAQ: AAON)
Q3 2020 Earnings Call
Nov 5, 2020, 4:15 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon, ladies and gentlemen, and welcome to AAON Inc. Third Quarter Sales and Earnings Call. There will be a question-and-answer period after management's brief presentation. This call will last approximately 45 minutes to an hour.
I would like to turn the meeting over to Mr. Gary Fields. Please go ahead, Mr. Fields.
Gary D. Fields -- President and Chief Executive Officer
Good afternoon. I'd like to read a forward-looking disclaimer to begin. To the extent any statement presented herein deals with information that is not historical, including the outlook for the remainder of the year, such statement is necessarily forward-looking and made pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings including the Annual Report on Form 10-K and the Quarterly Report on 10-Q.
So one of the first things I'd like to do is, thank all of our employees for their diligence to maintaining a safe work environment here at AAON. Coronavirus has been very challenging for all employers, but especially those that have to work in close proximity in a manufacturing environment. They've done an outstanding job of maintaining masking, social distancing, cleaning, temp scans and wellness check-ins when they check-in for their shift. We've done very well with that, and we so much appreciate them being diligent in maintaining that safety.
So with that, I'd like to turn it over to Scott and he will talk about the financial performance.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Thank you, Gary. I'd like to begin by discussing the comparative results of the three months ended September 30th, 2020 versus September 30th, 2019. Net sales were up 18.7% to $134.8 million from $113.5 million. Net sales for the quarter are up due primarily to our increased sheet metal production from the additional sale from Salvagnini machines that were put into operation during the year. Our gross profit increased 49% to $40.8 million from $27.4 million. As a percentage of sales, gross profit was 30.3% in the quarter just ended compared to 24.1% in 2019.
We continue to see overall raw material costs decrease. The Company has improved its labor and overhead efficiencies through increased production and-absorption of fixed costs. Selling, general and administrative expenses increased 18.9% to $14.7 million from $12.4 [Phonetic] million in 2019. Additionally, as a percentage of sales, SG&A remained steady at 10.9% of total sales in the quarter just ended and in 2019. SG&A is up due to increases in profit-sharing and other employee incentives related to increased earnings.
Income from operations increased 73.9% to $26.1 million or 19.4% of sales from $15.0 million or 13.2% of sales in 2019. Our effective tax rate increased to 21.8% from 4.9%. The Company's estimated annual 2020 effective tax rate, excluding discrete events is expected to be approximately 24.4%. 2019 had the benefit of a positive return to provision adjustment related to our research and development credit along with additional credits we were able to capture upon amending our Oklahoma returns.
Net income increased to $20.5 million or 15.2% of sales compared to $14.3 million or 12.6% of sales in 2019. Diluted earnings per share increased by 46.2% to $0.38 per share from $0.26 per share. Diluted earnings per share were based on 53,151,000 shares versus 52,722,000 shares in the same period a year ago.
Now for the comparative results of the nine months ended September 30th, 2020 versus September 30th, 2019. Net sales were up 14.7% to $397.9 million from $346.8 million. Net sales for the quarter are up due primarily to our increased sheet metal production from the additional Salvagnini machines that were placed into operation.
Our gross profit increased 46.8% to $121.9 million from $83.0 million. As a percentage of sales, gross profit was 30.6% in the quarter just ended compared to 23.9% in 2019. As already noted, we have experienced decreased material costs and improved overhead absorption.
Selling, general and administrative expenses increased 17.7% to $45.9 million from $39.0 million in 2019. Additionally, as a percentage of sales, SG&A increased to 11.5% of total sales in the quarter just ended from 11.2% in 2019. Income from operations increased 73.8% to $76.1 million or 19.1% of sales from $43.8 million or 12.6% of sales in 2019.
Our effective tax rate increased to 21.1% from 16.8%. The company's estimated annual 2020 effective tax rate, excluding discrete events, is expected to be approximately 24.4%. As already discussed, in 2019, our tax rate benefited from additional credits we were able to capture.
Net income increased to $60.1 million or 15.1% of sales compared to $36.4 million or 10.5% of sales in 2019. Diluted earnings per share increased by 65.2% to $1.14 per share from $0.69 per share. Diluted earnings per share were based on 52,955,000 shares versus 52,645,000 shares in the same period a year ago.
At this time, I will turn the call over to Rebecca Thompson, our Chief Accounting Officer and Treasurer.
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Thank you, Scott. Looking at the balance sheet, you'll see that we had a working capital balance of $164 [Phonetic] million versus $131.5 million at December 31st, 2019. Unrestricted cash totaled $70.6 million at September 30, 2020. Our current ratio is approximately 3.7:1. Our capital expenditures were $49 million. We expect capital expenditures for the year to be approximately $73.2 million with $41.3 million directed to our new facility in Longview, Texas. The Company had stock repurchases of $21.4 million during the nine months ended September 30th, 2020. Shareholders' equity per diluted share is $6.51 at September 30th, 2020 compared to $5.51 at December 31st, 2019.
I'd now like to turn the call back over to our CEO and President, Gary Fields.
Gary D. Fields -- President and Chief Executive Officer
I'd like to have a brief discussion about the current building readiness situation. So ASHRAE, American Society of Heating, Refrigerating and Air-Conditioning Engineers has put together a group they call the Epidemic Task Force. They published a building readiness guide of which they've updated numerous times throughout this event of coronavirus primarily. Most recently, it was updated on the 20th of October. Some of the key things that it talks about in there are related to building operating strategies such as pre-purge and post-purge, meaning in the unoccupied mode of operation that you purge the building. Well, there are some -- certain things that have to be considered there, temperature and humidity control. So most buildings when they go into this purge have the ability to either heat or cool in order to keep the building in an acceptable temperature range. One of the key factors that ASHRAE points out that maintaining the humidity ratio of 40% to 60% is ideal for minimizing the spread and propagation of viruses. So if you're in the northern latitudes and you purge this building in the winter mode like from right now going forward, then you'd have a very low dew point. So you'd have to add a lot of humidity. So that's onerous to the operating characteristics.
If you're in the southern latitudes, in Tulsa today, we're at 75 degrees, and if we were to purge the building tonight, we'd have dew points that would be well above that 60%relative humidity, if we didn't control it. So basic operating strategy that AAON brought to the market many years ago and is deemed the gold standard for controlling humidity. So this is something that's inherent in our characteristics in just this operational strategy that this epidemic task force has recommended.
And the next thing, they divide this from building operating strategies to actual HVAC equipment configurations. In this, they give extensive discussion to increased filtration. Vast majority of buildings use anywhere between a MERV 4 and a MERV 8 filtration level, which has always been acceptable for containing and filtering out your normal average particulates in the air stream, but with this virus, they have recommended going to a minimum of MERV 13 and even higher, possibly a MERV 14. Well, when you do this, then the air pressure drop across that filter increases substantially, well, in packaged rooftop units, particularly those 40 tons and smaller. In AAON's basic inherent design, we have accommodated that very well with a backwardly inclined direct drive fan. First off, this fan's speed is easily changed because we have either a ECM motor or a variable frequency drive motor. This is a programming change to change the speed, provided it was selected with some adequate safety margin between operating RPM and potential RPM, which is again an inherent characteristic of the way we provided software selection advice.
So the vast majority of the time, an existing installation of an AAON unit, they can change the filters from these lower MERV levels to the higher MERV levels with a simple adjustment of the fan speed. The efficiency of AAON's basic inherent design of the backwardly inclined fan is much, much better than our typical competitors with their forward curve fans, especially their belt drive forward curve fans. So we have a basic design characteristic that's been in place for many, many years, with AAON, with these direct drive backwardly inclined fans, so those bode very well for this increased MERV level filtration that this epidemic task force has recommended.
The next thing that they recommend is UV lights and bipolar ionization. Again, AAON has a basic design characteristic of the units that has ample space in a standard unit to allow these things to be added. So if the unit was purchased and put in the field and that option was not selected at that time, it's easily added by our sales channel partners with their service operations and we've seen a fair amount of that occurring.
One of the things that is a very desirable characteristic of AAON is that we have this electronic selection program with a myriad of selectable options to handle all of these various characteristics. So we offer factory installed UV lights -- factory furnished and installed UV lights, factory furnished and installed bipolar ionization devices. So when you look at the total product -- project cost, having all of this contained in the unit is very desirable characteristic. Now once we pass 40 ton units, then the competitors tend to have a little more space, a little more flexibility with their fan design, by the preponderance of units between 2 tons and 40 tons, AAON absolutely dominates that characteristic of the market in our basic inherent design that's been in place for decades.
So the next thing I want to talk about is raw material pricing. Scott mentioned that in the quarter versus the quarter a year ago that we had seen some decline in material pricing. We have a very progressive and aggressive purchasing group that caught a little low price on primarily copper and steel and got us some contracts that mostly serve our needs through Q1 of '21, maybe a little ways into Q2, but they began to notify me here recently that this low they had caught was behind us, that when they started looking at stretching out contracts further that there was a fairly significant increase in cost of both steel and copper.
So we're going to see material cost on our plant floor increase around the first part of Q2. Well, to counter that, we had a price increase announced recently and it goes into effect the first part of January and with our now very attractive lead times in our backlog in a much more manageable position, then that price increase that goes into effect in early January will actually be on the plant floor sometime in mid to late March, but totally on the floor in April. So the increased material cost, of course, 2021 salaries and wages are also going up a bit. So all of this will be well positioned with this price increase that we just put in effect.
We're beginning to see the the new construction market has tightened up. Architectural Billing Index has got maybe seven months in a row, Scott?
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Yeah.
Gary D. Fields -- President and Chief Executive Officer
I believe it's seven months in a row and it normally takes somewhere around eight or nine months for that to manifest itself for us. Well, I think a combination of the election and the concern over what direction the country is going to go there, coronavirus and this lower ABI, it's not out of the question to believe that we'd challenged on new construction in particular. We're seeing a rise in our success on replacement market, however.
As of today, well, as of the last day of the quarter, let me rephrase that, so as of -- that would be what, September 31 [Phonetic], correct? Our bookings for 2020 trailed 2019 bookings by 3.5%. That gap has been closing because at the end of Q2, that number was closer to 12%. So we have been closing that, so our efforts for the replacement market are beginning to materialize a bit. Our water source heat pumps, that's a business that I envision struggling under the circumstances of we were positioned primarily for new construction. Last time I got a data point on this, we were at about 78% new construction and 22% replacement. We analyzed why that was occurring because we believe that it should be the inverse of that, should be more like 25% new construction, 75% replacement. And our product development group did a very, very good job of analyzing what that was. They are deep into the design of the next generation of water source heat pumps that will address that. Those will be on the market in time for the big surge in replacement market activity. So I think that we're kind of in a not really a holding pattern, but we're not in a really aggressive growth mode with water source heat pumps at the moment for the reason that the new construction market for water source heat pumps has substantially decreased and our desirable product for the replacement market is soon to be released.
Our commercial and retail, interestingly enough, we're having very good luck with our national account customers that do more of the big box style retail environment and that's going well. We're still doing good steady business with our other customers that are in say foodservice and things like that. But overall, I'd have to say the commercial and retail is somewhat less than what we expected it to be. Office buildings are very much less than we expected them to be, prior to this coronavirus.
One of the hopes on the horizon and we've seen this materializing with some very good opportunities that have been turning into orders and there is a pipeline full of opportunities for it is medical and healthcare. Coronavirus exposed the weakness in the medical communities, physical facilities with those being primarily outside the urban areas. When you get outside the urban areas, you get into suburban and rural areas, for healthcare facilities, those become very, very much a target where AAON is very much appreciated in that market. We have very good application opportunities for that.
Education opportunities are an interesting one. We continue to see some parts of the country go forward with bond issues that they had previously issued and they go forward with their construction. We've also seen some that have pulled back a little bit. I'd have to say overall at this point in time, no, we're about even on that that market is not really -- we've had as many gains as we've had losses.
Another market for us that has seen acceleration and looks like it could continue to accelerate is manufacturing. We've seen a good increase in our orders for manufacturing. Lodging has been a bit surprising to me. I continue to see orders on a regular basis go into lodging facilities. It looks like that these are biased more toward the replacement market than they are in the new market. So I think a lot of people are upgrading their facilities to be in -- maybe in compliance with ASHRAE's recommendations or their engineering firms have given them good recommendations on that. When you have this increased ventilation, when you have the increased filtration requirements, those fall well for AAON. So I am still seeing a fair amount of orders for lodging and like I say, this was a bit surprising to me. So that's kind of our outlook on our various market segments.
Now, our backlog at September 30th, 2020 was $84.9 million, that was down from $165.3 million a year ago. Well, $165.3 million was actually a bit troublesome for us because that extended our lead times out where it was very unattractive. And so at this time last year, we were just beginning to get accelerated manufacturing capacity put in, so that we could start burning that backlog down. We have successfully deployed considerable expansion of manufacturing capacity. We have more manufacturing capacity coming on board. We have a new building in Longview that comes on board for manufacturing first week or two of January. So we're going to be able to shorten the lead times on the products that we're manufacturing in Longview considerably with that.
In Tulsa, we were able to add quite a lot of Salvagnini machines, we were able to repurpose some areas to more efficient manufacturing processes and the vast majority of those are completed, there is a few of them that are still under way with commissioning and utilization coming on board in the next few weeks. So we've brought our lead times down a lot and we've won a lot of projects because of that attractive lead time. So AAON had an attractiveness to it that we were able to fulfill, that's what caused the backlog to go up. And now we can fulfill that need for the production. So we're in balance at this moment, but we need for orders to strengthen a bit more because now we've created a lot of headroom between manufacturing capacity and bookings receipts.
So this is where we design the program to have additional manufacturing capacity and we've proven that and you saw the numbers this month or this quarter, I mean, considerable increase over anything we've ever done in the past, both the number of units and in dollars. So we're going to be managing this capacity increase very -- we've got a very efficient strategies, a lot of metrics that we look at on how to maintain the efficiencies that we have and I'm confident in my operations team that they will manage to this slight softening in bookings.
Now, I will say that we're trailing 2019 bookings by 3.5% right now and the forecast from our sales channel partners is that by the end of the year, we very probably could match 2019 bookings. They are actually a little more optimistic than that, but I'm not so certain about it. There is still a lot of tumultuous things going on right now.
Going into '21, we won't have the backlog that we had coming into '20. So that's going to put some constraints on us for a quarter or two until the momentum gets going back in this economy and until our sales channel is able to recover that momentum.
So that's what we're looking at right now. The next thing is we have not been able to give our people a holiday break shutdown for the four years that I've been here. This is the first time that we've had production has caught up and gotten ahead far enough to where we can give these people some rest and let them have a holiday shutdown. So we're going to shut down for the Christmas to New Year's holiday this year, because we are very well ahead of our commitments. So that's kind of what we're looking at. Q4, like I said, we came into it with a lower backlog than we did in Q4 of '19. So we're going to be slowing production down just a little bit here to make sure we maintain this efficiency.
And with that, we're open to questions.
Questions and Answers:
Operator
[Operator Instructions] And your first question will come from Will Jellison from D.A. Davidson.
Gary D. Fields -- President and Chief Executive Officer
Good afternoon, Will.
Operator
Mr. Davidson, you may be on mute. I mean, Mr. Jellison.
Will Jellison -- D.A. Davidson Companies -- Analyst
Thank you for that. I was on mute. Good afternoon.
Gary D. Fields -- President and Chief Executive Officer
Good afternoon. How's it going?
Will Jellison -- D.A. Davidson Companies -- Analyst
Well, thank you. Thank you for taking my question. My first one relates to the raw material prices and the price increase that you are implementing in January. Do you think that those two forces combined, you can sustain that 30% gross margin level you've seen for the last few quarters?
Gary D. Fields -- President and Chief Executive Officer
That is the target. And if our planning comes out in accordance, yes.
Will Jellison -- D.A. Davidson Companies -- Analyst
Okay. That's helpful. Thank you. And then you mentioned some opportunities related to the the COVID filtration and equipment upgrades. Do you have any sense right now of what proportion of new orders that opportunity represents for you?
Gary D. Fields -- President and Chief Executive Officer
You know I didn't do it that way. But what I did do, I maintain very close relationship with sales channel partners. I talked to a sales channel partner that had a job bid two weeks ago -- two weeks ago on Tuesday. This particular school district has a $1 billion bond issue and this was the first project for that bond issue. The school district has extensive installation of AAON equipment, so they listed AAON as their basis of design, they had two other manufacturers as alternates that had to be listed separately how that affected the project cost. When they put all the coronavirus mitigation devices in the unit that they wanted, this was the higher level of filtration, UV lights and the bipolar ionization.
For the first time that we've seen this kind of configuration go head to head in that regard, AAON was actually the most attractive not only in value, but in absolute price. They had an extensive list of bidders that listed AAON as anywhere between $50,000 and $100,000 less cost on this project, which was maybe, I'm going to say that bill of materials had closed in on $2 million. So that's inconsequential in percentage. But the thing is, is that the school district was accustomed to paying 10% to as much as 15% premium for AAON. So when you put these mitigation procedures in the unit and they have to be factory installed, all of a sudden that gap narrows considerably. So they were able to get all the value features that they had traditionally awarded AAON contract at a premium, they were able to get those at a level price.
So I think that news will travel fast and I think that on these new project installations where people want to have all of these mitigation procedures installed that they'll find out that they get those at little to no cost premium, maybe no cost premium and that they get all of the other value features that they're accustomed to paying a premium for AAON. So I think that bodes very well for us.
Will Jellison -- D.A. Davidson Companies -- Analyst
Got you. Thank you. I appreciate that color. That's all for now. I'll jump back in queue. Thank you.
Gary D. Fields -- President and Chief Executive Officer
Thank you, Will.
Operator
[Operator Instructions] Okay. You have a follow-up question from Will Jellison from D.A. Davidson.
Gary D. Fields -- President and Chief Executive Officer
All right, Will, what's the follow-up here?
Will Jellison -- D.A. Davidson Companies -- Analyst
Hello, again. I'm wondering, toward the beginning of the call, you gave some really detailed dialog, frankly much of which is over my head about the engineering behind the stance in some of your products. And you mentioned that they have a significant advantage over competitors. I'm wondering just with the economics of that product, what is stopping your competitors from creating something that can compete with your product?
Gary D. Fields -- President and Chief Executive Officer
That is a great question, Will. Our inherent manufacturing culture and technology was to use software-driven sheet metal manufacturing equipment. This dates back to 1997, when Norm first put in a Salvagnini machine and this Salvagnini machine took the place of various individual station machines such as shears, NC punches, press brakes and so forth. So this made it affordable to have that kind of flexibility. Well, as you evolve the product, then it's a slight software change in that sheet metal configuration that allows this to be done cost effectively. The most of our competition from, I would say, certainly 20 tons and below, but maybe even as much as 40 tons in some instances, they use a preponderance of hard tooling to obtain their efficiency in sheet metal manufacturing. So they buy a very expensive tool, a dye and have a press that punches out very cost efficiently sheet metal, but has no flexibility to it.
So when they want to change the configuration of the unit to accommodate something like this fan, then it is a major retooling and the other thing is they've got all of these big giant presses that operate these dyes that are just not conducive to that kind of flexibility. So it would take a major structural change in manufacturing thought process and technology for them to cost effectively put that fan in. Well, up until recently, they had a strong market for the people that had no need for this kind of fan or no real appreciation for it. So now with this pandemic and everything, it's changed the focus on the type of fan that you have, what the efficiency of it is, and how it operates. So there is a lot generated by this that I would say our strategy of product design all along has been to accommodate the more stringent applications, not the more ordinary applications. So when you go from that more ordinary application and you try and add to it these recommended mitigation strategies, then they just don't fit well for them.
Does that all make sense to you?
Will Jellison -- D.A. Davidson Companies -- Analyst
Yes, that's helpful, thank you. That's a pretty clear picture of the advantage that you have. I have one more question related to the capacity increases that you talked about earlier. Do you have a sense for how much quarterly revenue threshold do you have with that new capacity if they were to be fully utilized?
Gary D. Fields -- President and Chief Executive Officer
Well, yes, I have a sense -- at this moment -- I understand -- I continue to add capacity, so I'm going to give you a snapshot in time, snapshot in time being today. But I'm still adding capacity. Snapshot in time today is between what we did in Q3 and what we were capable of doing by just adding headcount, because our headcount is stable with a year ago, I mean almost identical to a year ago, almost to the person. And so if I was to add headcount, I could probably add 20% to 25% more output right now today with the physical plant that I have, but I continue to add more physical plant here within the Tulsa facility and in Longview, I'm going to double that. I've already got the building built, and we're going to have a certificate of occupancy next month on that building. So Longview -- do we separate out exactly how Longview comes out for them. No, so Longview runs about 12% of our finished goods, that's roundabout right, Scott?
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Yeah, right.
Gary D. Fields -- President and Chief Executive Officer
Yeah, about 12%. And we had 234,000 square foot down there, but that also manufactured the coils that come up here and the finished goods equipment. So to manufacture that 12% of finished goods equipment probably takes up maybe 40% of the manufacturing space and I added a 100% addition to what's there in total. So in other words, we have about 150% increase in capacity coming online, physical plant capacity coming online in Longview.
Now, we don't look to have a consistent run rate to require that. What we do look at is that product that we manufacture in Longview is very sensitive to lead time, very much appreciated when you have a quick-ship availability and so the peak that you build on any one day, week or month really dictates what's the ideal physical plant size. So you may not have the same utilization of that equipment in Longview that we do here in Tulsa because we're a little less prone to that sort of peaking activity, but that's very good business to have and so we have built it with that in mind and so to give you an overall sense, we have at least 25% more physical plant capacity than what you've witnessed thus far. We're bringing on another 20% to 25%. So we can easily in the physical facilities that we currently have raise our revenue in the 50% range without too much effort.
Will Jellison -- D.A. Davidson Companies -- Analyst
Excellent, thank you. Well, that answers all of my questions. Thank you so much for taking them --
Gary D. Fields -- President and Chief Executive Officer
Thank you, Will.
Will Jellison -- D.A. Davidson Companies -- Analyst
-- and have a good afternoon.
Gary D. Fields -- President and Chief Executive Officer
You too.
Operator
And you have a question from Matt McGeary from Eagle Asset Management.
Matthew McGeary -- Eagle Asset Management -- Analyst
Hi, good afternoon guys.
Gary D. Fields -- President and Chief Executive Officer
Good Afternoon, Matt.
Matthew McGeary -- Eagle Asset Management -- Analyst
Could you give some more color on the water source heat pump redesign to address the aftermarket, when will that be ready to go and do you have the relationships with the appropriate distribution avenues to address that market in the way that you want to?
Gary D. Fields -- President and Chief Executive Officer
I'll divide those up. First thing is that the products from 0.5 ton through 6 ton, which is the primary need for that backwardly compatible water source heat pump for retrofit installation. It will be ready for production no later than April 1st, that's a very conservative date at this point in time. Vast majority of it's completed now, but there is no sensibility to piece-mealing that next generation out to the sales channel. It would just be frustrating. So we are going to have the complete line from 0.5 ton through 6 ton ready to go no later than April 1st.
Then the next reason -- the thing that we missed -- when we designed our product, we looked at what was most desirable in the new construction environment because those are the people that we were accustomed to working with and talking with, we had not yet built a competent sales channel in the retrofit market and didn't have the real expertise and input from the retrofit market going back to 2015 when we designed the product we have. So a lot of the characteristics we have are very desirable people like them. That's why it's taken off as well as it has, but it did not fit in a backwardly compatible environment.
So things that were critical with regards to where electrical panels were placed, so that you had proper service clearances in this retrofit environment, those were overlooked. So now we've taken looked at it and figured out how to maintain our most desirable upgrade characteristics, while also making it backwardly compatible. So it will still have the same high desirability on new construction that will be much, much more friendly application in the retrofit.
Then the next thing is, as we got into the water source heat pump business, we recognized that our sales channel partners were not focused on the retrofit, they were focused on new construction plants that kind of work, and so we started working with them going back at least four years ago on how to develop an effective sales and marketing strategy to do that. A lot of that included them building some warehouse space and having units in stock because in the retrofit market, a high percentage of it is not planned, so if someone's unit breaks down and they decide that it's cheaper to put a new unit than to repair the unit, they don't want to wait days or weeks to get a new unit. So our sales channel partners had to build out some, and become basically to some degree a distributor in addition to a traditional manufacturer's rep.
Well, over this four-year period of time, we've seen a [Indecipherable] with that. I don't know exact percentage right now that are stocking water source heat pumps, but I would say it would approach half that are stocking heat pumps now with more committed to coming online, as we get a product that's more ideal. We've also engaged a couple of veterans from that market, from that service retrofit market to lead our sales management efforts and both of these gentlemen are very well respected in the industry, they are respected by our sales channel partners and they are helping craft and implement operating plans for these folks to become proficient in this. So this will be a good opportunity for us to get the water source heat pump business growing again and I have confidence that it will occur. The timing of it is somewhat subjective. But I think we'll see good progress in '21 with the implementation of the new more desirable retrofit type product along with the strategy that they've been putting in place.
Matthew McGeary -- Eagle Asset Management -- Analyst
Great, thanks a lot. Appreciate that.
Operator
And I have no further questions in the queue.
Gary D. Fields -- President and Chief Executive Officer
All right. Well, we thank you very much and we will talk to you again in February with our fourth quarter results. Have a nice day.
Operator
[Operator Closing Remarks]
Duration: 43 minutes
Call participants:
Gary D. Fields -- President and Chief Executive Officer
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Will Jellison -- D.A. Davidson Companies -- Analyst
Matthew McGeary -- Eagle Asset Management -- Analyst
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So we have a basic design characteristic that's been in place for many, many years, with AAON, with these direct drive backwardly inclined fans, so those bode very well for this increased MERV level filtration that this epidemic task force has recommended. Aaon Inc (NASDAQ: AAON) Q3 2020 Earnings Call Nov 5, 2020, 4:15 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good afternoon, ladies and gentlemen, and welcome to AAON Inc. Third Quarter Sales and Earnings Call.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good afternoon, ladies and gentlemen, and welcome to AAON Inc. Third Quarter Sales and Earnings Call. Aaon Inc (NASDAQ: AAON) Q3 2020 Earnings Call Nov 5, 2020, 4:15 p.m. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated.
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Aaon Inc (NASDAQ: AAON) Q3 2020 Earnings Call Nov 5, 2020, 4:15 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good afternoon, ladies and gentlemen, and welcome to AAON Inc. Third Quarter Sales and Earnings Call. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated.
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So we have a basic design characteristic that's been in place for many, many years, with AAON, with these direct drive backwardly inclined fans, so those bode very well for this increased MERV level filtration that this epidemic task force has recommended. Aaon Inc (NASDAQ: AAON) Q3 2020 Earnings Call Nov 5, 2020, 4:15 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good afternoon, ladies and gentlemen, and welcome to AAON Inc. Third Quarter Sales and Earnings Call.
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Aaon Inc (AAON) Q2 2020 Earnings Call Transcript
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https://www.nasdaq.com/articles/aaon-inc-aaon-q2-2020-earnings-call-transcript-2020-08-07
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Aaon Inc (NASDAQ: AAON)
Q2 2020 Earnings Call
Aug 7, 2020, 10:15 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the AAON, Inc. second quarter sales andearnings call [Operator Instructions]
I would now like to hand the conference over to your first presenter, Mr. Gary Fields. The floor is yours. You may begin.
Gary D. Fields -- President, Chief Executive Officer and Director
Good afternoon. I'd like to begin by reading a forward-looking disclaimer. To the extent any statement presented herein deals with information that is not historical, including the outlook for the remainder of the year, such statement is necessarily forward-looking and made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. As such, it is subject to the occurrence of many events outside AAON's control, that could cause AAON's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings, including the annual report on Form 10-K and the quarterly report on Form 10-Q. So now I'd like to begin with telling you a little bit about our experience with coronavirus and how it's affected our business. First of all, and of utmost importance, is to thank our employees. We've been able to maintain continuous operations. As a result, we have been able to assist with many COVID-19 projects. We are this is vital to our business as an essential business and essential business supplier. I'm very proud of the effort that our employees have gone too to maintain safety in the plant. They are all wearing masks, social distancing. They're doing temperature scans on arrival and at any point in time throughout the day that they feel like that it's necessary. When they clock in, in the mornings or in the evenings, whichever at the beginning of their shift, they certify through a wellness reporting system in our clock in. So we did have some absenteeism because of coronavirus. In June, we had about the second week of June, we had a substantial decline in attendance. It bottomed out in mid-June was mostly restored in the second week of July. Very happy to say that we had very good results with our people returning to work healthy and this was a temporary impact for that period of time I described. And we are mostly recovered on attendance, and these people came back very healthy, ready to work.
Now I'd like to turn the call over to Scott Asbjornson, our Chief Financial Officer.
Scott M. Asbjornson -- Vice President of Finance and Chief Financial Officer
I'd like to begin by discussing the comparative results of the three months ended June 30, 2020, versus June 30, 2019. Net sales were up 5.2% to $125.6 million from $119.4 million. Net sales for the quarter are up due primarily to our increased sheet mill production from the additional cell vanina machines of replaced in operation as well as our price increases implemented in 2019. Our gross profit increased 26.2% to $38.1 million from $30.2 million. As a percentage of sales, gross profit was 30.4% in the quarter just ended compared to 25.3% in 2019. We continue to see overall raw material cost decrease. The company has improved its labor and overhead efficiencies through increased production and absorption of fixed costs. Selling, general and administrative expenses increased 23.4% to $15.9 million from $12.9 million in 2019. Additionally, as a percentage of sales, SG&A increased to 12.7% of total sales in the quarter just ended from 10.8% in 2019. SG&A is up due to increases in profit-sharing, employee incentives, driven by increased earnings and largely to a $1.25 million contribution to Winefred mont in public schools on behalf of Norman Asbjornson in recognition for his transition from CEO to Executive Chairman. This equates to roughly $0.025 per share. Income from operations increased 28.4% to $22.2 million or 17.7% of sales from $17.3 million or 14.5% of sales in 2019. Our effective tax rate decreased to 20% from 22.7%. The company's estimated annual 2020 effective tax rate, excluding discrete events, is expected to be approximately 25.1%. Net income increased to $17.8 million or 14.2% of sales compared to $13.4 million or 11.2% of sales in 2019. Diluted earnings per share increased by 36% to $0.34 per share from $0.25 per share.
Diluted earnings per share were based on 52,750,000 shares versus 52,747,000 shares in the same period a year ago. Now for the comparative results of six months ended June 30, 2020 versus June 30, 2019. Net sales were up 12.8% to $263.1 million from $233.3 million net sales for the quarter are up due primarily to our increased cheap mobile production from the additional Salvini machines that were placed into operation. Our gross profit increased 45.7% and to $81.1 million from $55.6 million. As a percentage of sales, gross profit was 30.8% in the quarter just ended compared to 23.9% in 2019. And as already noted, we have experienced decreased material costs and improved overhead absorption. Selling, general and administrative expenses increased 17.2% and to $31.2 million from $26.6 million in 2019. Additionally, as a percentage of sales, SG&A increased to 11.8% of total sales in the quarter just ended from 11.4% in 2019. Income from operations increased 73.8% to $50 million or 19% of sales from $28.8 million or 12.3% of sales in 2019. Our effective tax rate decreased to 20.8% from 23.1%. The company's estimated annual 2020 effective tax rate excluding discrete events, is expected to be approximately 25.1%. And net income increased to $39.7 million or 15.1% of sales compared to $22.1 million or 9.5% of sales in 2019. The diluted earnings per share increased by 78.6% to $0.75 per share from $0.42 per share. Diluted earnings per share were based on 52,885,000 shares versus 52,589,000 shares in the same period a year ago.
At this time, I would like to turn the call over to Rebecca Thompson, Chief Accounting Officer and Treasury.
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Thank you, Scott. Looking with the balance sheet, you'll see that we had a working capital balance of $143.2 million versus $131.5 million at December 31, 2019. Unrestricted cash totaled $61.3 million at June 30, 2020. Our current ratio is approximately 2.9:1. Our capital expenditures were $33.5 million. We expect capital expenditures for the year to be approximately $73.2 million. The company had stock repurchases of $15.9 million during the six months ended June 30, 2020. Shareholders' equity per diluted share is $6.1 at June 30, 2020, compared to $5.51 at December 31, 2019.
I'd now like to turn the call back over to our CEO and President, Gary Fields Field.
Gary D. Fields -- President, Chief Executive Officer and Director
So net sales have increased. This is due, by and large, as Scott mentioned earlier, to the Salvagnini machines that allowed us to produce the sheet metal required to build our units. So once we produce the sheet metal, then it becomes more impacted by human activity. So absent of the time frame through June and the first week or two of July, we have been producing on a daily basis at a record pace, the highest production numbers per day. So once absenteeism is stabilized, which has begun to do quite well. We're nearly restored on that. So we believe that our production has also stabilized. Of course, this coronavirus is such a quick thing that can impact you. I suppose it could occur again. But we've done pretty well with that so the projects that we have produced in relation to coronavirus, we've talked about last quarter, some of those for New York. There's also been some other facilities that we produced equipment for that, for instance, in the state of Maine, there's a company up there that manufactures the swabs that are used for testing. They've expanded their facility substantially. We've already supplied quite a few units to them for their first expansion. And I think we're closing in on an order for another expansion that they have planned. They were very happy with what we did on the first one. So that's kind of the the jobs that are directly related. There's been a lot of indirect relationship in that there's been some community hospitals that have come out of mothballs that we've been able to provide some equipment to help renovate and update these.
There's been a myriad of facilities that are as a result of coronavirus, there was an awareness on the need to get these facilities up and going. The other thing we're seeing good activity on, and we're very well positioned with our equipment for is increased vigilance on indoor air quality. The coronavirus is well-known to be a aerosol transmitted virus and so if you have the ability to do two things: one is capture that so that it's not recirculated. And two is if you have the ability to kill that virus inside the unit. And so we have strategies that have assisted with that with higher levels of filtration and different methods utilized. There's been two or three methods utilized to help reduce the live virus that's circulated. We're fairly unique in that regard in that our basic design of our the air side of our equipment has additional static pressure capabilities to overcome the static pressure requirements of these higher filtration levels that ash Ray has recommended. So this, again, positions us very well. Mentioned before that absenteeism had an impact on production. We've restored that now. So we're producing again at daily numbers that are on par with the best daily numbers we've ever achieved. Sales coming in the door, bookings we saw a decline throughout the spring and the early summer versus our expectations and versus 2019. However, July turned around substantially. We finished July's bookings substantially above 2019 and more in alignment with our expectations prior to coronavirus. We've also looked at activities that are in the pipeline with our sales channel partners and believe that we're poised for fairly solid results going through the next period of time here. At least for another quarter or two as far as bookings. I think with the political environment, election and so forth, that there could be some debate on how well that's going to occur in Q4, Q1. And I think that a lot of states that opened up early on and got some activities going seen a little pause in opening and some have even contracted a bit. So these are things that are very unpredictable.
So it's very hard to give a solid direction that things are going, but our backlog remains very stable, very strong. And it's nearing our ideal point so that our lead times are nearing their ideal point as well. Water-source heat pumps, there's not been a whole lot of change in that business. We saw a little weaker demand it for so far this year than what we did in 2019. But we've began with some strategies to strengthen that in primarily in the aftermarket replacement business, looking at what makes a more effective presentation of product for that. And we're in the midst of designing some additional product that's more ideal for that backwardly compatible replacement market, such that if somebody has a failure that they don't want to repair the unit, you've got an instant change out for them. So that's some of our redesign that we've done in that regard our legacy products, as I would like to term them the products that we build in Longview Tex is the products that we build here in Telsa prior to this water-source heat pump. Under constant development for improvement. We've got a multitude of strategies and improvements that are rolling out on a weekly to monthly basis. And we believe that each one of these is going to have a positive impact on our growth potential and our market share growth. So at this point in time, we've seen everything relatively in line with past relationships as far as size of units and so forth. But I would like to point out that there's a couple of opportunities that we've been able to capture. And I think there's more on the horizon. And that is that there's some conditioned warehouses. These are warehouses that require air conditioning. They tend to be very large buildings that they utilize larger units. So you don't have a large quantity of units, you have larger tonnage. And this falls very well into our offerings. Some of our competitors are very limited on the size range they have. And so this has been able to provide us a really good opportunity. Some of those orders are already in-house. We have some more in the pipeline that are very, very significant.
But manufacturing is the same time. We've seen some acceleration in manufacturing project opportunities, some of which we've capitalized on. I mentioned once before that we were awarded the contract to supply the air conditioning equipment for the new Black & Decker Craftsman tools manufacturing in North Texas. We have other manufacturing facilities, some of which are we don't want to talk about individual projects so much when they're in the pipeline, but there are some opportunities out there that are boding very well for us. Office buildings are challenged. I think that we're going to see particularly spec office buildings, especially of office buildings declining, coming up. Architectural Billing Index seems to support that new construction is going to be declining slightly. We've had four months in a row that architecture billing index has been below the benchmark of 50. So that puts more emphasis on us capitalizing on some of the markets that we're very strong in. And one of the things that I've noticed looking at the sales channel partners pipeline and talking to them, is that there are more and more opportunities that are owner-operated type facilities, which bodes very well for us. As opposed to speculative facilities or developer type facilities where they own them for a short period of time. So I guess the next part of our market segments that we've talked about in the past is lodging. We have multiple national accounts that we work with on that. And new starts on lodging, I think, are going to be very challenged. We've seen a couple of projects delayed. Haven't seen anything canceled, but I think that new starts are going to be challenging. But that gives us an opportunity to go through and help these people with their efforts to modernize, update and refresh some existing facilities, and we fit that very well. So with that, I'll conclude the market talk. Our backlog was $119.6 million at June 30. And and that was versus $166 million a year ago. Now to some that may look unfavorable, to me, it actually looks favorable because at $166 million our lead time was extraordinary and lengthy, and this was restricting us from some really good opportunities.
We had to turn down a lot of opportunities because we just weren't able to produce we worked very hard. And for about a year now, maybe in a little excess of a year. We've been adding seven any capacity, additional capacity and streamlining our operations. And so now we're able to produce at a higher level. And that in itself brought the backlog down. And so at this point in time, our balance between backlog, bookings and shipments is relatively in order. There were a handful of jobs that were delayed somewhat. It actually coincided well with the fact that we had some K-12 replacement business that we had units due in June and July primarily. And at the same time, we were having the absenteeism rate. So we were a little bit challenged by that. As it turns out, those projects were all delayed because they had absent rates for their construction workers that have delayed their progress as well as school opening delays. So we were actually able to satisfy all of those shipment requirements with no delay to the actual outcome. We're seeing orders as I said, in July, rebounding very nicely. And I think this is in response somewhat to our lead times. A lot of opportunities are being presented to us and one of the primary concerns has been, when can you deliver it? And we've been able to respond favorably to these. So that being the case, I think 2020, we will finish the year with modest growth. And I believe we'll begin 2021 with a relatively stable backlog unless something catastrophic occurs in the overall economy that we've not yet seen. July results were good. In spite of the fact that we had some absenteeism for the first few days of July.
As of I think it was July 12, was the first day that I saw us produce on a daily basis. At our highest level, and we've been able to maintain that production level. So in the first 10 or 11 days, of course, you had two days of holiday in there, but the first 10 or 11 days of the month were we're underperforming because of absenteeism. But once we hit around the 12th of July, we restored that. The balance of the year, barring any unexpected absenteeism again or anything catastrophic like that, we think that we're going to perform quite well for the rest of the year. One of the absenteeism issues that has been discussed and there's been a lot of effort in the community in our business itself to assist with how to resolve is there's schools that have not gone into session on time, not planning one session in time. And so you've got people that are having some child care issues with what do they do with their kids, while they're at work, I think they've become relatively well equipped on this now. It seems because they've been dealing with this since late in the spring. And so I don't think we're going to have too much substantial impact from that. Just a little bit of a lagging situation for a handful of people.
With that, I'd like to open it up to questions.
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from the line of Brent Thielman. Your line is open. Please ask your question.
Gary D. Fields -- President, Chief Executive Officer and Director
Hello, Brent.
Brent Thielman -- D.A. Davidson -- Analyst
Hi, good afternoon guys. Gary, maybe first off, I mean that despite some of the disruption seemingly late in the quarter. The gross margins are holding up pretty well. I guess your thanks for the at least some view on what you think sales can do through the remainder of the year. And I know that's subject to a lot of things. But how do you feel about sort of maintaining these margins at these sort of levels in all the variant factors out there and barring any change in the inflationary environment?
Gary D. Fields -- President, Chief Executive Officer and Director
Well, we had June we look at each month stand-alone as they occur. And June was surprisingly good. This absenteeism that PTO time for those people is accrued. And so it doesn't affect us in a negative way. The thing that you don't get is you don't get the dilution of the fixed cost when you don't have the revenue. So I think that I'm very proud of what our team did in managing cost and managing the people for the best outcome. June as a stand-alone month was relatively representative on a gross margin basis for the whole quarter, as I recall. I'm getting a nod of approval from my accounting and folks here. So June was relatively on par with that. We've not since we just closed out July, we've not seen those numbers. But revenue in July looked fairly similar to June. Yes. So having the same sort of controls in place on the efficiency and just the scrutiny to every little detail in the business. I would expect that July performed somewhat on par with June, maybe slightly less, but somewhat on par. August is starting off with really, really good production and good attendance. And so I think that August, and we've got good backlog to run through September at this rate and good prospects on the horizon. So I think that the stability in gross margin performance is very probable.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. And Gary, just to clarify, I mean, I think typically, third quarter is one of your stronger quarters. Do you expect a step-up in revenue from the second quarter?
Gary D. Fields -- President, Chief Executive Officer and Director
I don't. And it's because those first roughly 10 days of July, 10, 11 days that we were below production numbers because of attendance. If that had not occurred, then yes, I would say so. If we were in the range, and I've not seen the forecast yet. We're just normally, about mid-quarter, my production team could give me a pretty good forecast of what revenue is going to look like because they've got their production schedule. Fairly solidified, and they've got their rhythm for it. So we're about a week early for being able to determine that. But I would expect Q3 probably to be in the same range as Q2. It won't be the normal bump up that you've seen historically. And again, that was largely affected by the absenteeism or this first 10 or 11 days of July. Do you both of you agree with that?
Scott M. Asbjornson -- Vice President of Finance and Chief Financial Officer
I would tend to say so. I think effectively, the impact we had from coronavirus was split half between the end of June and the beginning of July. And so you're going to probably see somewhat of a mirror image
Gary D. Fields -- President, Chief Executive Officer and Director
Yes. That's the way I saw it as well. Thank you, Scott.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. And just to clarify, given the lead times have shortened, I see all the all the work in your backlog reflects most current pricing and that's out there, you don't have much. I have no one from prior price increases. Yes, yes.
Gary D. Fields -- President, Chief Executive Officer and Director
No, no. We had as I recall, it was relatively across the board price increase in June of 19. That's fully enabled in the production, I would say, even Q2 was fully enabled. There was a small price increase, selected price increase in December. Again, I think some part of Q2 captured that. And I would say that Q3 is entirely on that, but that was very inconsequential to the overall gain because it was on select equipment, even though it was 4% or 5%, it was on probably let's see, it was on is on long view equipment along five? Correct? Yes. So it was affected on somewhere around 20% of our revenue. That we we got about half with that price level on the plant floor.
Brent Thielman -- D.A. Davidson -- Analyst
Got it. Last one, I'll get back in clear. The indoor air quality upgrades, is that considered a part sale or is that a full-on replacement of a unit?
Gary D. Fields -- President, Chief Executive Officer and Director
Full on replacement of the unit for most of these facilities. When you go let's see you go to an elementary school that was built even 15 years ago. And let's say they did not purchase a on equipment. So the equipment that they purchased, the fan that supplies the air to the space and recirculates it, doesn't have the capability of overcoming these additional filtration levels that we're talking about. The other thing is, is those units that a lot of our competitors sold on those projects don't have the space in them for these virus-killing devices. And so our units accommodate both and that strategy in our units has been available for many years. So we didn't have to do any new design, redesign or anything like that. We have a project that we are supplying to the Carrollton Farmers branch, Texas School district. I think there's nearly 600 units. And they are adding the virus killing device and then we added the higher filtration. And so that's just one example of a school district that recognize this and that was all planned before coronavirus. And they came in and added this virus killing device once they saw the effect of it with coronavirus.
Brent Thielman -- D.A. Davidson -- Analyst
Okay, thank you guys for taking the questions. I'll be back in line.
Operator
Thank you. Our next question comes from the line of Joe Mondillo. Your line is now open. Please ask your question.
Joe Mondillo -- Sidoti -- Analyst
Hey, Gary. Hi guys. I wanted to start with following up on Brent's last question. And just to expand on that. What kind of units are you referring to? Or is it water-source heat pumps or roof comps? And then in addition to that, is there other types of units that maybe you don't manufacture other types of systems that could be a substitute at all? And then lastly, as far as the uniqueness that you mentioned regarding the static pressure, could you expand on that? And how many producers out there can provide what you're referring to there?
Gary D. Fields -- President, Chief Executive Officer and Director
Okay. So let's divide this up a little bit. So in indoor units, virtually every competitor we have has this capability because indoor units don't tend to be so commoditized, they're not an in stock on the shelf kind of a unit. they're built to order. So virtually everyone that's building indoor air handling units has the capability of providing a fan system that is capable of overcoming this. Indoor air handling units typically go with chill water systems. For the products that we produce in Longview, Texas, we have a high percentage of buyers that are what's called a split system. They also include a condensing unit, and they have refrigerant run through their coils rather than chilled water. So when you're talking about those indoor split systems, you start narrowing this down a little bit because a lot of our competitors don't have a real effective offering of this style of split system with these kind of capabilities. So for many years, our successes of the split systems we produce in Longview were due to the attributes they had with some application strategies. In other words, a lot of projects with chill water, which are typically your larger central projects, central plant projects, we were able to duplicate that kind of performance with a split system and scale that down. So some projects need an indoor air unit because they don't have rough structure or roof square footage available for a rooftop unit. So that lies well for long view. Now when we're talking about packaged rooftop units, when we're talking about units that are 25 tons and smaller, then virtually all of our competitors with a small exception that would be Daiken.
Their fan systems will not accommodate this additional static pressure for these higher filtration requirements. So we have essentially one competitor that can match us on fan performance on these 2510 and smaller units, and that would be Daikin. And when we look at it from a competitive standpoint, that's quite nice to compete against them. When we go above 25 tons, then it starts sprinkling in a few manufacturers here and there, between 25 and 50 tons, we'll say, that can do these sorts of things. Now once we get above 50 tons, then it becomes even more of those manufacturers are capable of doing that. So our most substantial opportunity is in the 2- through 25-ton sized equipment that our strategy and our value proposition are extraordinary. Water-source heat pumps. We do have a fan capability to step up the filtration capabilities in those. That was one of our Unite designs. Because we recognize this ability even before coronavirus, that there were many applications that would desire a higher level of filtration. So as far as water-source heat pump manufacturers going head-to-head, we do have unique capabilities once again in that facet.
Joe Mondillo -- Sidoti -- Analyst
Okay. And have you I don't know which one would be maybe the most ideal fitted for sort of COVID air quality. If there is one, have you seen any I guess, just broadly, have you seen any indication that you've started to see increased demand? Or is it still too early?
Gary D. Fields -- President, Chief Executive Officer and Director
To the increased filtration or the virus-killing-devices going in the units.
Joe Mondillo -- Sidoti -- Analyst
I guess, just anything related to putting in COVID-related systems because of air quality and filtration
Gary D. Fields -- President, Chief Executive Officer and Director
I think we're on the early part of that, Joe. And let me tell you, Asra is our industry resource for research and development. And it's done on a all of our peers participate on these committees and on these research opportunities. And so this is a collaboration between the entire industry. And as Ray published a paper recently describing what they thought were best practices for how to handle this airborne virus, this aerosol virus and that was increased filtration levels. It's called a merv level in ERV, increased merve level filtration as well as coupling that with one of the three strategies for virus killing. So UV lights are an obvious choice for killing a virus. But the problem is, is that to have the intensity required to kill the virus at any speed as it goes through the unit and its normal speed, the intensity has to be much higher than what we were accustomed to having in the past. Most of the UV devices that the industry has been installing in their units was to kill any surface borne viruses and bacterias that might accumulate on the cooling coil. So this strategy of increasing the intensity of UV is rather new, and it's something that as Ray put in one of the recommendations. There's also some ionization type virus killing devices that are getting some attention as well as a plasma device that will kill this virus. So there's really three technologies out there that are working their way through to see which one is the most viable, which one is the best value. But you couple all of these with this higher level of filtration because when they kill that virus, you want to capture those particles in a throwaway filter.
Joe Mondillo -- Sidoti -- Analyst
I see. Very interesting. How about as far as your COVID related end market trouble spots being retail, office, hotels, they make up 40% to 50% of your revenue. Construction is overall 50% or so of your revenue how do you view maybe the positive aspects of Co bid related demand to some of the adverse effects to the pandemic in terms of those end markets?
Gary D. Fields -- President, Chief Executive Officer and Director
Well, I think what you've described is relatively accurate that some of these markets are declining. As far as new construction, they're definitely in jeopardy of declining because architecture billing index has been a great indicator, and it's four months in a row that it's been below the benchmark of 50 that says things are going in a positive direction. So there will be more emphasis on replacement business. It's something that when I came here nearly four years ago now, that I recognized was a significant market opportunity for us, and we've been putting strategies in place to increase that. And I think we're making good traction with that. Our sales channel as a whole, as we improved it, some of the characteristics of the improved partners that we selected were due to that aspect of their business that they had a focus on this aftermarket replacement solutions type business. So I think that a lot of the improvements we made in the sales channel is going to have a beneficial impact to us shifting from 50-50, 50% new construction, 50% replacement. I would look for over the next 18 months for our ratio to change somewhat and our new construction to be a smaller percentage and our replacement business to be a larger percentage. When it comes to water-source heat pumps, particularly, that is an absolute strategy that must be utilized because the new construction, some of the biggest markets for water-source heat pumps were hotels and high-rise condominiums.
Both of which I think are going to be substantially curtailed. But on the other hand, if they're not building new hotels and not build new condominiums, they've got units that have got age on that are failing that have got to be replaced. So we have have a full-time effort on increasing that business for about 18 months in the water-source heat pumps. And we've seen some configurations and equipment strategies that would make it even more make our product offering even more attractive, and we're deep into the design of these additional characteristics and features that are going to enhance that. We're looking for somewhere in Q1 to have a complete generation of equipment, water-source heat pump equipment introduced that will be specifically to address this replacement market be backwardly compatible. Then the other thing to offset some of these industries and segments that are going downwardly trending, there's some upwardly trending opportunities as well. Some of which I've talked about before in more vague terms that I can talk more specific now. Large-scale conditioned warehouses there are companies that have online ordering, online processing of ordering and home delivery that are building additional facilities across North America. We've been successful in securing one particular business of that was building six new facilities across North America.
And at this point in time, we've secured the order for four of those facilities. Each one of them is not as an individual that's not material to our business, but they're all incremental, and they're all beneficial. Then the other thing is, we've seen some on shoring or reestablishing of manufacturing here in North America. We have secured some of that work already, and we have some in our pipeline being developed. One of those projects is extraordinary. It's in the early stages of it, but it's one that we expect to be awarded within this month. And so hopefully, when we're having this call next quarter, we'll be able to tell more about that. But at this point in time, it's a little early. But there's a lot of opportunities out there to offset the downside. Now overall, the growth is going to be challenging. But I think that when you looked at some of our peers and the reporting that they've had, competitors and peers. We are gaining market share. Our value proposition is more appreciated now than ever. And I've always said, and this is something that Norman has validated for me is in these times of downturn, that's when we actually flourish because people have time to consider the value proposition, and we win that very often.
Joe Mondillo -- Sidoti -- Analyst
Okay. I just wanted to also just follow-up on sort of the backlog and the effect to what that has. And you gave sort of an indication of what you're thinking for the third quarter. I'm just trying to think sort of further out than the third quarter. Did this sort of mishap or maybe not miss that, but the issues with your absences. Did that affect where your backlog is today, which is relatively pretty high, if you look back two years ago, it's about 20%, 25% higher than where it was two years ago, even though it's down year-over-year from here. To that extent, how much did this sort of effect going into the fourth quarter? Do you think, say, you get sort of maybe flat to modest growth in orders in the third quarter? I see a recovery starting in the fourth quarter in that sort of scenario?
Gary D. Fields -- President, Chief Executive Officer and Director
I think that's reasonable to assess it that way. When we look at the commentary we're having with our sales channel partners, the general tenor is that things are improving as things began to open back up. Things are beginning to move. A good many of them believe that there's adequate opportunities out there to kind of maintain our position, but then we keep getting presented with these unique opportunities. This large manufacturing opportunity that's being presented to us right now is very lead time sensitive. And because of our increased capacity, we are absolutely able to meet their scheduled requirements. And when the discussion with some of the other contenders for the project, they're all challenged by that. They're not willing to commit to this very aggressive schedule. So when I go back to the planning we did a couple of years ago, realizing that we didn't have as much production capacity as we need it. And we started getting things rearranged, cleaned up in the plant, reutilizing some space, better utilizing it, getting more Salvani machines in here. We have when we built our new laboratory, for instance, we had an existing laboratory here in Tulsa. We have two manufacturing buildings here. The West building is our biggest footprint building. The East building was our original manufacturing building, and we build our smaller tonnage units there. And but we also had our original laboratory in there. Well, once we got the new laboratory up and going, we demoed that space. Working with our manufacturing engineering group here in the office, we devised a whole new manufacturing line for one of our most popular products one of our products that caused us to go out to an exorbitant lead time last year, 35, 40 weeks lead time.
Well, we've been able to arrest that to around 16 weeks right now, but when we get this new manufacturing line up and going, we will be able to produce these large tonnage units, the ones that are more standard configuration at 150% greater rate than we do right now. And when we look at that, that means we'll be on a regular basis. So that opportunity with that new manufacturing line, which will come on board, they're telling me sometime in December. So I'm kind of counting on it to start Q1 have that capacity available. Well, there's opportunities out there for the style units. They run I think they run 55 tons to 140 tons. Is that right, or 55 on the small yes, 55 to 140. So these fit, these larger conditioned warehouses and some data center type battery cooling areas and things like that. They fit it very well. And so we're increasing our manufacturing capacity right there. And with that reduced lead time on that, so many of these projects are very, very sensitive to lead time. When these people start planning these data centers, when they pull the trigger, they want to be done yesterday. And so we're going to be able to respond to that even better than we are today.
Scott M. Asbjornson -- Vice President of Finance and Chief Financial Officer
One thing just to make sure that we're all understanding is our backlog is expected to potentially still decline in the sense that it's supposed to represent roughly about two months' worth of our production. And that historically has been we have found to be kind of an ideal range or we don't have any questions at this time.
Joe Mondillo -- Sidoti -- Analyst
Okay, well thanks for taking my questions. I'll hop back in queue
Operator
[Operator Instructions] We have a follow-up question from the line of Joe Mondillo do. Your line is now open. Please ask your question.
Joe Mondillo -- Sidoti -- Analyst
Hi Guys. If you don't mind, I just have a couple of follow-ups.
Gary D. Fields -- President, Chief Executive Officer and Director
Sure, sure. Go ahead, Joe.
Joe Mondillo -- Sidoti -- Analyst
So just as far as capacity right now, what size backlog just so we sort of have an idea, what size backlog could you increase to where your lead times don't get extended or it doesn't cap your revenue. I'm just wondering how much revenue can this business sort of handle at this point?
Gary D. Fields -- President, Chief Executive Officer and Director
Well, it's a moving target because we continue to add manufacturing capacity. The new building in Longview, for instance, we went from 234,000 square foot original facility down there. We're building 220,000 square feet, capacity coming online Q1 and and so we'll have more capacity for Longview. Right now, if I segment lung views backlog out there, they're at about 12 weeks right now. I think we believe yes. And that's a more backlog a more lead time-sensitive product group than what we produce here in Tulsa. Ideal down these five to six weeks. Well, rather than curtail the orders, I want to increase the manufacturing capacity. So that will come on January 1. And so the ideal backlog today for Longview would be substantially less than what it is. The ideal backlog for Longview starting January 1, is going to be about where it is right now, OK? So that's that moving target. Now Longview has traditionally been, what, 10%, 12% of our revenues, hopefully, 10% to 12%. So if the Tulsa products were to become stagnant, which they won't, but if they were, then long views we're expecting good growth opportunity out of Longview in 2021. We've got multiple programs that we're working on with software development to expedite the processing and billing materials generation so we can shorten lead times to utilize that manufacturing capacity. Then here in Tulsa, we still don't have all of our Salvagnini machines installed that we ordered for accretive capacity. We've got one machine right now that looks to be probably two weeks away from coming online. So that will be some incremental capacity growth. So to answer your question, today, with the capacity I have today, the ideal backlog looks somewhere between $90 million and $100 million. But I have increasing capacity coming Ali over the next few months. So that's going to be a moving target.
Scott M. Asbjornson -- Vice President of Finance and Chief Financial Officer
One of the things we're also working on is trying to make sure that we have capacity to deal with short lead time requests in a growing effort as we move forward.
Gary D. Fields -- President, Chief Executive Officer and Director
We've got to have headroom between demand and production capacity. If we don't have that headroom, then you begin to discourage these people because they call and say, "Hey, I need this unit in this lead time. And if you have to say no, they look for either an alternative solution or they just give up altogether. And so having additional manufacturing capacity to have that headroom for that peaking. So over the last two or three years, you've not seen the bell curve that had existed through most of the life of the company. I believe in 2021, that we're more likely to see that bell curve begin to reestablish itself. And by 2022, I think it will be firmly in place. That being that Q2, Q3 have higher revenue numbers than Q1, Q4.
Joe Mondillo -- Sidoti -- Analyst
Got it. How about raw materials, about 12 to 18 months ago, your the spread between input prices and output prices, sort of squeeze your margins. And I believe that sort of started to reverse in the other direction. But now we're seeing copper is pretty high historically and some other raw materials have been rising. So where are we on price cost situation. I have a sheet that they give me from our purchasing group that has about 70% of all of our purchase materials. Rather, those are fixed I mean, finished goods, like compressors and motors or rather they're raw materials like copper or aluminum, steadied and stainless steel.
Gary D. Fields -- President, Chief Executive Officer and Director
Overall, that's quite stable right now. We've had some things go down, some things go up. As a trend, it was down just a little bit year-to-date. And we were able to lock in some pricing protection on certain aspects of that for do you remember how long we were able to lock in that, Steve. I 12 2018. Yes. So in the 12 to 18-month range on some of these materials, we've been able to lock in a buy price. So if those things begin to go up, and I've got this locked in price, and I kind of like my chances with that. I think we've done quite well. So just to summarize that, Joe, I think right now, what I'm seeing and what I've been given for the next six month outlook on material pricing is it's no impact, positive or negative. It's neutral. And then as far as the SG&A, I think I may have missed it, but was that inflated? I thought I heard maybe Scott said there was a donation in the SG&A. Yes. You did, Joe. You did miss that. So on May 12, when the Board of Directors so graciously appointed me the CEO, that is the same-day that Norm was appointed Executive Chairman. And so that's a next step for both of us. And in honor of that, the Board voted for and granted a onetime contribution to the Winefred Montana independent school district, which is where Norm was born and raised. And I'm proud to say that norm, Scott, myself and Doug Wichman went there and presented that check in person to them for $1.25 million. So that was an SG&A expense in Q2. And if you look at that, what a roughly $0.025 a share on a pre-tax basis and a little bit under $0.02 a share on an after-tax basis. Yes. Okay. So even with our absenteeism, if you'll make an allowance for that contribution, we were pretty darn close to earnings expectations. And our SG&A would have been pretty much in line with what you had previously thought.
Yes. Yes, correct. Even with taking that out though, it's the SG&A is still up 14%. But I guess, profit yes. Profit sharing, don't forget my employees. We allocate 10% of our pre-tax earnings to profit sharing. We issued the check goes out Monday, give you that exact amount, 12 $56 million I don't know the exact number off the top of my head, have a much for to get it real quick. So it was 1,686, the first quarter, and I believe the number was $12 and $56. This is per employee, all employees with the exception of $1,276.19 per eligible employees. I was sort FY 2020 into to $0.45 per regular eworks. Yes. So that profit sharing is an SG&A expense, and it's our biggest variable. The two biggest variables in our SG&A expenses typically are warranty and profit sharing. And so warranty is down and profit sharing is up. And that's the way we want it to be. Same period last year, that amount was $1,091, OK? So that's a 25% increase, almost 27% increase over last year. So at this point in time this year, on a dollars per hour basis, give me that calculation. I was $2.45 per rate. That was for the quarter. For the quarter. Year-to-date, were 280 in it. I don't remember the exact amount. Yes. Yes. So for year-to-date, our employees have gotten $2.8 an hour year-to-date in profit sharing bonus. Here on SG&A, we like to see going up. Yes. No, for sure. That definitely makes sense.
Joe Mondillo -- Sidoti -- Analyst
Well, that's all the questions I had. I appreciate you taking the extra ones and good luck with the back half of the year.
Gary D. Fields -- President, Chief Executive Officer and Director
With no further questions, I want to thank all of you for participating and listening today. We'll talk to you in November for our third quarter results. Have a nice day.
Operator
[Operator Closing Remarks]
Duration: 62 minutes
Call participants:
Gary D. Fields -- President, Chief Executive Officer and Director
Scott M. Asbjornson -- Vice President of Finance and Chief Financial Officer
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Brent Thielman -- D.A. Davidson -- Analyst
Joe Mondillo -- Sidoti -- Analyst
More AAON analysis
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends AAON. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaon Inc (NASDAQ: AAON) Q2 2020 Earnings Call Aug 7, 2020, 10:15 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Ladies and gentlemen, thank you for standing by, and welcome to the AAON, Inc. second quarter sales andearnings call [Operator Instructions] I would now like to hand the conference over to your first presenter, Mr. Gary Fields. As such, it is subject to the occurrence of many events outside AAON's control, that could cause AAON's results to differ materially from those anticipated.
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Aaon Inc (NASDAQ: AAON) Q2 2020 Earnings Call Aug 7, 2020, 10:15 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Ladies and gentlemen, thank you for standing by, and welcome to the AAON, Inc. second quarter sales andearnings call [Operator Instructions] I would now like to hand the conference over to your first presenter, Mr. Gary Fields. As such, it is subject to the occurrence of many events outside AAON's control, that could cause AAON's results to differ materially from those anticipated.
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Aaon Inc (NASDAQ: AAON) Q2 2020 Earnings Call Aug 7, 2020, 10:15 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Ladies and gentlemen, thank you for standing by, and welcome to the AAON, Inc. second quarter sales andearnings call [Operator Instructions] I would now like to hand the conference over to your first presenter, Mr. Gary Fields. As such, it is subject to the occurrence of many events outside AAON's control, that could cause AAON's results to differ materially from those anticipated.
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Aaon Inc (NASDAQ: AAON) Q2 2020 Earnings Call Aug 7, 2020, 10:15 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Ladies and gentlemen, thank you for standing by, and welcome to the AAON, Inc. second quarter sales andearnings call [Operator Instructions] I would now like to hand the conference over to your first presenter, Mr. Gary Fields. As such, it is subject to the occurrence of many events outside AAON's control, that could cause AAON's results to differ materially from those anticipated.
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10450.0
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2020-07-07 00:00:00 UTC
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Noteworthy Tuesday Option Activity: VSLR, AAON, RH
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AAON
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-vslr-aaon-rh-2020-07-07
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Vivint Solar Inc (Symbol: VSLR), where a total of 21,356 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to about 123.4% of VSLR's average daily trading volume over the past month of 1.7 million shares. Particularly high volume was seen for the $14 strike call option expiring July 17, 2020, with 5,271 contracts trading so far today, representing approximately 527,100 underlying shares of VSLR. Below is a chart showing VSLR's trailing twelve month trading history, with the $14 strike highlighted in orange:
AAON, Inc. (Symbol: AAON) options are showing a volume of 2,376 contracts thus far today. That number of contracts represents approximately 237,600 underlying shares, working out to a sizeable 113.9% of AAON's average daily trading volume over the past month, of 208,625 shares. Especially high volume was seen for the $60 strike call option expiring January 15, 2021, with 1,600 contracts trading so far today, representing approximately 160,000 underlying shares of AAON. Below is a chart showing AAON's trailing twelve month trading history, with the $60 strike highlighted in orange:
And RH (Symbol: RH) options are showing a volume of 9,641 contracts thus far today. That number of contracts represents approximately 964,100 underlying shares, working out to a sizeable 106.8% of RH's average daily trading volume over the past month, of 902,565 shares. Particularly high volume was seen for the $290 strike call option expiring July 17, 2020, with 2,029 contracts trading so far today, representing approximately 202,900 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $290 strike highlighted in orange:
For the various different available expirations for VSLR options, AAON options, or RH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $60 strike call option expiring January 15, 2021, with 1,600 contracts trading so far today, representing approximately 160,000 underlying shares of AAON. Below is a chart showing VSLR's trailing twelve month trading history, with the $14 strike highlighted in orange: AAON, Inc. (Symbol: AAON) options are showing a volume of 2,376 contracts thus far today. That number of contracts represents approximately 237,600 underlying shares, working out to a sizeable 113.9% of AAON's average daily trading volume over the past month, of 208,625 shares.
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Below is a chart showing VSLR's trailing twelve month trading history, with the $14 strike highlighted in orange: AAON, Inc. (Symbol: AAON) options are showing a volume of 2,376 contracts thus far today. That number of contracts represents approximately 237,600 underlying shares, working out to a sizeable 113.9% of AAON's average daily trading volume over the past month, of 208,625 shares. Below is a chart showing AAON's trailing twelve month trading history, with the $60 strike highlighted in orange: And RH (Symbol: RH) options are showing a volume of 9,641 contracts thus far today.
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Below is a chart showing VSLR's trailing twelve month trading history, with the $14 strike highlighted in orange: AAON, Inc. (Symbol: AAON) options are showing a volume of 2,376 contracts thus far today. Below is a chart showing AAON's trailing twelve month trading history, with the $60 strike highlighted in orange: And RH (Symbol: RH) options are showing a volume of 9,641 contracts thus far today. That number of contracts represents approximately 237,600 underlying shares, working out to a sizeable 113.9% of AAON's average daily trading volume over the past month, of 208,625 shares.
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Below is a chart showing RH's trailing twelve month trading history, with the $290 strike highlighted in orange: For the various different available expirations for VSLR options, AAON options, or RH options, visit StockOptionsChannel.com. Below is a chart showing VSLR's trailing twelve month trading history, with the $14 strike highlighted in orange: AAON, Inc. (Symbol: AAON) options are showing a volume of 2,376 contracts thus far today. That number of contracts represents approximately 237,600 underlying shares, working out to a sizeable 113.9% of AAON's average daily trading volume over the past month, of 208,625 shares.
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10451.0
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2020-07-03 00:00:00 UTC
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These 3 Stocks Are Potential Buyout Targets
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AAON
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https://www.nasdaq.com/articles/these-3-stocks-are-potential-buyout-targets-2020-07-03
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Heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON), bioprocess engineering products company Repligen (NASDAQ: RGEN), and machine vision company Cognex (NASDAQ: CGNX) are vastly different companies. But they have one thing in common: They're all highly attractive strategic assets operating within growth industries. Let's take a look at why they could be a good fit for larger companies looking to make acquisitions.
AAON
The HVAC industry has seen a remarkable amount of restructuring in recent years, and the leading U.S. players are all better placed to start consolidating. Where Johnson Controls (NYSE: JCI), Trane Technologies (NYSE: TT), and Carrier (NYSE: CARR) were previously part of much larger industrial companies, they've now been freed in order to focus on their core HVAC market.
These companies could be acquisition targets in the future. Image source: Getty Images.
Johnson Controls spun off its automotive interiors business, Adient, in 2016, and then sold its automotive battery business in 2019, with part of the rationale being to focus on HVAC. Meanwhile, Trane Technologies was created when the former Ingersoll Rand company merged its industrial business with Gardner Denver . Carrier was spun out of the former United Technologies in 2020.
Lennox International (NYSE: LII) is sometimes seen as a potential target because of its focus on the U.S. residential market, but I think high-end commercial HVAC play AAON is potentially a better option. The market cap won't deter a potential bidder, and given the company's focus on the premium end of the commercial HVAC market, it's likely to offer a potential acquirer an immediate opportunity to expand into new markets without cannibalizing existing sales.
Data by YCharts
While AAON is definitely not the cheapest industrial stock on the market, or even in its sector, recent events have highlighted the potential for the company if it was part of a larger company. For example, recent investment in new sheet metal fabrication machines had the effect of shortening the time AAON takes to manufacture equipment. As such, if AAON is to be part of a larger company, it could receive substantive future investment in order to enhance productivity. That's an idea that could attract bidders.
Data by YCharts
Repligen
The case for a Repligen takeout comes from the idea that it's a nichecompany in a fast-growing and consolidating market. Bioprocessing relates to the cultivation and purification of cells for use in the production of pharmaceuticals, foods, and chemicals. It's a process usually split into upstream bioprocessing (cell isolation and cultivation) and downstream bioprocessing (separation, filtration, and purification).
There are four major players in the market, with Merck's MilliporeSigma offering upstream and downstream equipment. Sartorius is best known for its downstream (filtration) equipment solutions, and ThermoFisher for its upstream (cell cultivation) equipment. Meanwhile, Danaher (NYSE: DHR) has recently become a bioprocessing industry leader through the addition of GE biopharma (largely upstream solutions) to its strength in downstream (membranes and filtration) equipment.
All of this leaves Repligen as a small player surrounded by some very large neighbors in a consolidating market.
Data by YCharts
Repligen competes with these companies and also counts the biopharma unit that Danaher bought from General Electric and MilliporeSigma as major customers. The company is known for its strength in downstream equipment solutions (filtration and a leading position in areas of chromatography), and its acquisition would immediately lead to an increase in equipment market share for an existing bioprocess leader or a new entrant into the industry. Repligen has good sales momentum in 2020, so don't be surprised if its peers are running the slide rule over it right now.
Cognex
It's been a difficult couple of years for this machine vision company. Like many companies with exposure to automation, its traditional core markets are automotive and consumer electronics (in Cognex's case, smartphone production). Unfortunately, both end markets have been weak in 2019 and 2020, and Cognex's revenue growth has stuttered accordingly.
Data by YCharts
That said, automotive production is set to bounce in 2021, while smartphone sales/production will bounce and also be supported by 5G rollouts. Meanwhile, Cognex continues to grow its logistics sales -- driven by e-commerce warehousing -- and its other end markets, like packaging, food, and pharmaceuticals, remain strong.
Image source: Getty Images.
In addition, the automation market is seen as being a major beneficiary of the movement toward reshoring manufacturing in the U.S. In order to be cost-competitive, manufacturers will have to look at automating production.
As such, Cognex's leading position in machine vision could attract a lot of interest from some of the far larger companies that play in the robotics and automation market, such as Siemens, ABB, Rockwell Automation, or Schneider.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and General Electric wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 2, 2020
Lee Samaha owns shares of Siemens AG (ADR) and Trane Technologies plc. The Motley Fool owns shares of and recommends AAON and Cognex. The Motley Fool recommends Repligen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON), bioprocess engineering products company Repligen (NASDAQ: RGEN), and machine vision company Cognex (NASDAQ: CGNX) are vastly different companies. Lennox International (NYSE: LII) is sometimes seen as a potential target because of its focus on the U.S. residential market, but I think high-end commercial HVAC play AAON is potentially a better option. Data by YCharts While AAON is definitely not the cheapest industrial stock on the market, or even in its sector, recent events have highlighted the potential for the company if it was part of a larger company.
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Heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON), bioprocess engineering products company Repligen (NASDAQ: RGEN), and machine vision company Cognex (NASDAQ: CGNX) are vastly different companies. Lennox International (NYSE: LII) is sometimes seen as a potential target because of its focus on the U.S. residential market, but I think high-end commercial HVAC play AAON is potentially a better option. Data by YCharts While AAON is definitely not the cheapest industrial stock on the market, or even in its sector, recent events have highlighted the potential for the company if it was part of a larger company.
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Heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON), bioprocess engineering products company Repligen (NASDAQ: RGEN), and machine vision company Cognex (NASDAQ: CGNX) are vastly different companies. Data by YCharts While AAON is definitely not the cheapest industrial stock on the market, or even in its sector, recent events have highlighted the potential for the company if it was part of a larger company. Lennox International (NYSE: LII) is sometimes seen as a potential target because of its focus on the U.S. residential market, but I think high-end commercial HVAC play AAON is potentially a better option.
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Data by YCharts While AAON is definitely not the cheapest industrial stock on the market, or even in its sector, recent events have highlighted the potential for the company if it was part of a larger company. Heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON), bioprocess engineering products company Repligen (NASDAQ: RGEN), and machine vision company Cognex (NASDAQ: CGNX) are vastly different companies. Lennox International (NYSE: LII) is sometimes seen as a potential target because of its focus on the U.S. residential market, but I think high-end commercial HVAC play AAON is potentially a better option.
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10452.0
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2020-07-02 00:00:00 UTC
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7 American Manufacturing Stocks to Buy Before Recovery
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AAON
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https://www.nasdaq.com/articles/7-american-manufacturing-stocks-to-buy-before-recovery-2020-07-02
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Institute for Supply Management supplies a monthly look at the U.S. manufacturing market. In April, that index hit an 11-year low.
But since then, the numbers have been rising. They’re not going wild, but they’re rising.
You have seen this in the housing market where new home purchases are growing — mortgage demand is increasing — and in other spots that show the consumer moving back into the economy and taking advantage of low interest rates.
This is why the consumer is so fundamental to the economy. When they are buying durable goods and housing, manufacturers benefit from the increased demand.
7 Utilities Stocks to Buy With Reassuring Dividends
These 7 American manufacturing stocks to buy now are benefiting from the expanding consumer demand for goods. And they should benefit further as the U.S. economy rights itself and starts to grow again.
Builders FirstSource (NASDAQ:BLDR)
AAON Inc (NASDAQ:AAON)
Generac Holdings (NASDAQ:GNRC)
Applied Materials (NASDAQ:AMAT)
YETI Holdings (NYSE:YETI)
Illinois Tool Works (NYSE:ITW)
Lumentum Holdings (NASDAQ:LITE)
Remember many of these stocks were hammered over the spring when investors were still expecting the worst from the COVID-19 lockdowns. And right now, all of them are a “Buy” in the Portfolio Grader tool I use to find Growth Investor plays.
Builders FirstSource (BLDR)
Source: Shutterstock
This likely isn’t a name consumers know offhand, since it’s fundamentally a supplier to the homebuilding market, supplying goods such as roof and floor trusses, vinyl windows, drywall and lumber.
But it is a Fortune 500 company and does about $7 billion worth of business across more than 400 locations around the US.
Again, you’re not going to see a lot of advertising on television for BLDR, but it is a major homebuilding supplier in the U.S. That means when housing is growing, so is BLDR.
The stock has been on a ride in the past year, growing well through the second half of 2019, only to erase much of those gains in March this year. But BLDR is up 80% in the past 3 months and still up 22% in the past 12 months.
AAON Inc (AAON)
Source: Shutterstock
This firm specializes in commercial, industrial and residential HVAC. This is another sector that goes hand in hand with an expanding economy. New facilities need new equipment.
Also, with low-cost loans available, upgrading old, inefficient equipment for more efficient HVAC can actually be cost-reducing in the long term. That also goes along with businesses that are expanding or downsizing their plants and offices.
Remember, the locksdowns have sent many people home to work, which is also an ideal time to do the necessary upgrades to HVAC units. Work-from-home, to a much greater extent than it was pre-pandemic, is here to stay, and that’s been a source of great buys for Growth Investor.
7 Utilities Stocks to Buy With Reassuring Dividends
AAON stock has stayed positive throughout the COVID-19 troubles and currently is up 10% year to date. It also offers a small 0.7% dividend, which is still better than a lot of CDs out there.
Generac Holdings (GNRC)
Source: Shutterstock
As our world becomes more gadget-centered — TVs, computers, smartphones, etcetera — it also needs reliable sources of power to supply these devices and the equipment and devices that run them.
Given that our power grid hasn’t changed much from the grid that Thomas Edison helped develop, demand is beginning to outstrip supply increasingly often. And as we recently saw in California, harsh weather combined with stresses on this antiquated system can turn catastrophic.
Many people are coming to realize that having back-up power when their utility goes down is a smart play. And that bodes well for leaders in the field such as Generac.
The stock has taken off in the past few years as consumers and industrial clients see the need and value in being able to manage ‘off the grid’. And it’s also easier and more convenient than ever before to integrate backup power into your business set-up.
GNRC is up 70% over the past year, 21% year to date. This is a long-term trend beyond the traditional business cycle.
Applied Materials (AMAT)
Source: michelmond / Shutterstock.com
Usually when you think manufacturing, you think big machines, sparks and hard hats.
Well at AMAT, it’s more about lab coats and sterile rooms.
Since 1967, AMAT has been a leading manufacturer of semiconductor equipment. They build the machines that etch, measure, inspect and conduct all other aspects of wafer production.
Most tech investors think of chipmakers as the superstars of the industry, but it’s behind the scenes players like AMAT that keep their stars burning. And being a key supplier for more than half a century in such a dynamic industry shows you that they’re every bit as cutting edge as they used to be. That’s a recipe for strong fundamentals and popularity with the “smart money” on Wall Street, which is where I find compelling opportunities for Growth Investor.
Tech remains a cyclical industry. And right now, tech is hot. The S&P 500 has even adjusted its weighting to favor tech stocks. That’s great news for AMAT.
7 Utilities Stocks to Buy With Reassuring Dividends
The stock is up 35% in the past 12 months, and still delivers a respectable 1.5% dividend.
YETI Holdings (YETI)
Source: David Tonelson / Shutterstock.com
If the pandemic lockdown did one thing beyond flattening the curve, it was to drive cabin fever to a pitch like nothing has in recent memory.
People were itching to get out of the house. And many, respecting the need for social distancing, didn’t head to the cities, but instead to mountains and lakes and beaches.
And the fact that they may have given up summer holidays or had fewer options to spend money, saw YETI as a great place to pick up on some premium outdoor recreation products.
YETI is known for its top of the line coolers, drinkware and just about anything else outdoor gear oriented. It has also become somewhat of a status symbol brand among those in the know, which is a big deal for consumers with disposable income.
The stock has been on a tear, up 136% in the past 3 months and 41% in the past year. This is the most directly consumer-driven stock of the bunch.
Illinois Tool Works (ITW)
Source: Casimiro PT / Shutterstock.com
This firm has been around since 1912 — that’s the year Woodrow Wilson beat William Taft for the presidency.
That’s a long time to be making tools. At this point, the company carries a $55 billion market cap and is diversified across a number of industries, including electronics, automotive, food, polymers and welding.
That kind of diversification is what has helped keep this giant so successful for so long. ITW isn’t a sexy company by any means, but what it lacks in sizzle it makes up for in steak.
The stock delivers a solid 2.4% dividend and has a proven record of weathering even the most catastrophic storms. Currently, it’s up 17% for the past 12 months and 27% in the past 3 months.
7 Utilities Stocks to Buy With Reassuring Dividends
This is a safe port-in-the-storm stock that continues to perform quietly and consistently. And if you’re looking for growth and income — both key ingredients for any portfolio — I’ve got more where that came from.
Lumentum Holdings (LITE)
Source: Michael Vi / Shutterstock.com
One of the most fundamental advances in our digital world was discovering how to use light to transfer data. Photo optics had a huge beginning in the 1990s when it was still fairly theoretical and didn’t have enough demand to support the expense.
The sector had its reckoning when the dotcom bubble burst. But since then, it has continued to grow and mature.
Now fiber optics are at the core of most high-power commercial and consumer telecom systems.
LITE is a core provider of optical and photonics products. That means it provides the components and subsystems that move data around the country (and world) as well as building commercial grade lasers that are helping industries as diverse as sheet metal processing, precision machining, biotech and drilling circuit boards.
The company started just 5 years ago and already has a $6 billion market cap — that’s some serious growth. In the past 12 months, LITE is up 50%, 18% in the past 3 months. This growth stock will keep its momentum through our current events.
Speaking of momentum, you’ll notice that many of these buy-rated manufacturers are serving the tech industry. That’s because there are some huge megatrends gearing up now for high demand around the world. Which brings me to the next big opportunity I have for you today:
The 5G Buildout Is an Incredible Opportunity
If you’re like me, then COVID-19 really underscored the importance of good, fast internet at home. Plenty of Americans, especially essential workers, still have to venture out to keep the country going. But many of us can conduct daily life at home, around the clock.
So, while the press releases from Big Telecom will emphasize the “cool factor” of 5G, and how it’s up to 100 times faster than 4G, I want you to think about it more practically.
5G is what’s going to keep us all connected in the modern economy. If you live somewhere without reliable (or any!) broadband access, you might have trouble keeping up with shopping or even finances in the “new normal.” That is, until ultrafast 5G wireless changes all that for you.
Mobile providers like AT&T and Verizon need 5G to maintain their edge – and get people into new smartphone contracts. But the big profits will come from the companies that help create 5G.
One such company I like now is much lesser known than the Big Telecom companies but has excellent growth prospects.
This company is already one of the biggest semiconductor equipment manufacturers in the world. These days, its products for machine learning, optics, sensors and analytics are getting deployed for all sorts of next-generation technologies: the self-driving cars, robotics, cloud computing and the larger Internet of Things (IoT).
Most importantly for a Growth Investor, this stock is a “Strong Buy” in my Portfolio Grader now.
So, if that company doesn’t sound familiar to you, I’d like to change that. This is the kind of stock that can help you profit from all the 5G infrastructure that’s popping up everywhere.
I have a complete, freshly-updated investment report on it, called The King of 5G “Turbo Button” Technology. You can secure a copy by watching my free briefing on 5G and joining us at Growth Investor today.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
The post 7 American Manufacturing Stocks to Buy Before Recovery appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Builders FirstSource (NASDAQ:BLDR) AAON Inc (NASDAQ:AAON) Generac Holdings (NASDAQ:GNRC) Applied Materials (NASDAQ:AMAT) YETI Holdings (NYSE:YETI) Illinois Tool Works (NYSE:ITW) Lumentum Holdings (NASDAQ:LITE) Remember many of these stocks were hammered over the spring when investors were still expecting the worst from the COVID-19 lockdowns. AAON Inc (AAON) Source: Shutterstock This firm specializes in commercial, industrial and residential HVAC. 7 Utilities Stocks to Buy With Reassuring Dividends AAON stock has stayed positive throughout the COVID-19 troubles and currently is up 10% year to date.
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Builders FirstSource (NASDAQ:BLDR) AAON Inc (NASDAQ:AAON) Generac Holdings (NASDAQ:GNRC) Applied Materials (NASDAQ:AMAT) YETI Holdings (NYSE:YETI) Illinois Tool Works (NYSE:ITW) Lumentum Holdings (NASDAQ:LITE) Remember many of these stocks were hammered over the spring when investors were still expecting the worst from the COVID-19 lockdowns. 7 Utilities Stocks to Buy With Reassuring Dividends AAON stock has stayed positive throughout the COVID-19 troubles and currently is up 10% year to date. AAON Inc (AAON) Source: Shutterstock This firm specializes in commercial, industrial and residential HVAC.
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Builders FirstSource (NASDAQ:BLDR) AAON Inc (NASDAQ:AAON) Generac Holdings (NASDAQ:GNRC) Applied Materials (NASDAQ:AMAT) YETI Holdings (NYSE:YETI) Illinois Tool Works (NYSE:ITW) Lumentum Holdings (NASDAQ:LITE) Remember many of these stocks were hammered over the spring when investors were still expecting the worst from the COVID-19 lockdowns. AAON Inc (AAON) Source: Shutterstock This firm specializes in commercial, industrial and residential HVAC. 7 Utilities Stocks to Buy With Reassuring Dividends AAON stock has stayed positive throughout the COVID-19 troubles and currently is up 10% year to date.
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Builders FirstSource (NASDAQ:BLDR) AAON Inc (NASDAQ:AAON) Generac Holdings (NASDAQ:GNRC) Applied Materials (NASDAQ:AMAT) YETI Holdings (NYSE:YETI) Illinois Tool Works (NYSE:ITW) Lumentum Holdings (NASDAQ:LITE) Remember many of these stocks were hammered over the spring when investors were still expecting the worst from the COVID-19 lockdowns. AAON Inc (AAON) Source: Shutterstock This firm specializes in commercial, industrial and residential HVAC. 7 Utilities Stocks to Buy With Reassuring Dividends AAON stock has stayed positive throughout the COVID-19 troubles and currently is up 10% year to date.
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10453.0
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2020-06-03 00:00:00 UTC
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Why Shares of AAON Soared in May
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AAON
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https://www.nasdaq.com/articles/why-shares-of-aaon-soared-in-may-2020-06-03
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What happened
Shares in heating, ventilation, air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 13.7% in May, according to data from S&P Global Market Intelligence. The move comes on the back of a startlingly strong set of first-quarter earnings released in on May 7.
You'd think the global economy hadn't slowed at all when looking at the industrial company's 21% year-over-year rise in net sales in the first quarter. The bumper sales increase fed through into a whopping 150% increase in net income in the quarter to $21.8 million.
Image source: Getty Images.
The reason? It comes down to a couple of key factors. First, according to the earnings release, AAON was the beneficiary of " multiple orders for temporary hospitals in the New York area" as a result of the COVID-19 pandemic. That's testimony to AAON's reputation for high-quality customized HVAC solutions.
Second, management actually reduced the average time to deliver equipment in the quarter because of the addition of several sheet metal fabrication machines. This had the impact of boosting net sales to $137.5 million, compared with $113.8 million in the same quarter of 2019.
However, the sales boost resulted in a reduction in the backlog to $119.6 million, compared with $142.7 million at the end of the first quarter of 2019 -- something that might be a cause for concern among some investors.
So what
To reassure investors that the reduced backlog didn't spell out a future reduction in growth, management noted on the earnings release, " While business continues to remain firm, evidenced by our 92% of expected order intake in the first quarter of 2020, we are closely monitoring and adapting to COVID-19-related variables."
Moreover, speaking on the earnings call on May 8, President Gary Fields said orders booked compared to expectations -- which were 92% of expectations in the first-quarter to the end of March -- were "kind of in that same range right now."
Now what
AAON has had a great start to the year, but part of it is due to a boost from COVID-19 that might not reoccur. In addition, there are some question marks around the spending plans of retail and restaurant customers in the light of the pandemic. Meanwhile, a forward P/E ratio of 40 times earnings suggests there's little room for error in the stock price. Time will tell.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends AAON. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First, according to the earnings release, AAON was the beneficiary of " multiple orders for temporary hospitals in the New York area" as a result of the COVID-19 pandemic. What happened Shares in heating, ventilation, air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 13.7% in May, according to data from S&P Global Market Intelligence. That's testimony to AAON's reputation for high-quality customized HVAC solutions.
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What happened Shares in heating, ventilation, air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 13.7% in May, according to data from S&P Global Market Intelligence. First, according to the earnings release, AAON was the beneficiary of " multiple orders for temporary hospitals in the New York area" as a result of the COVID-19 pandemic. That's testimony to AAON's reputation for high-quality customized HVAC solutions.
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What happened Shares in heating, ventilation, air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 13.7% in May, according to data from S&P Global Market Intelligence. First, according to the earnings release, AAON was the beneficiary of " multiple orders for temporary hospitals in the New York area" as a result of the COVID-19 pandemic. That's testimony to AAON's reputation for high-quality customized HVAC solutions.
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What happened Shares in heating, ventilation, air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 13.7% in May, according to data from S&P Global Market Intelligence. First, according to the earnings release, AAON was the beneficiary of " multiple orders for temporary hospitals in the New York area" as a result of the COVID-19 pandemic. That's testimony to AAON's reputation for high-quality customized HVAC solutions.
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10454.0
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2020-05-29 00:00:00 UTC
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Ex-Dividend Reminder: Avnet, AAON and Linde
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AAON
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-avnet-aaon-and-linde-2020-05-29
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Looking at the universe of stocks we cover at Dividend Channel, on 6/2/20, Avnet Inc (Symbol: AVT), AAON, Inc. (Symbol: AAON), and Linde plc (Symbol: LIN) will all trade ex-dividend for their respective upcoming dividends. Avnet Inc will pay its quarterly dividend of $0.21 on 6/17/20, AAON, Inc. will pay its semi-annual dividend of $0.19 on 7/1/20, and Linde plc will pay its quarterly dividend of $0.963 on 6/17/20. As a percentage of AVT's recent stock price of $27.45, this dividend works out to approximately 0.77%, so look for shares of Avnet Inc to trade 0.77% lower — all else being equal — when AVT shares open for trading on 6/2/20. Similarly, investors should look for AAON to open 0.35% lower in price and for LIN to open 0.48% lower, all else being equal.
Below are dividend history charts for AVT, AAON, and LIN, showing historical dividends prior to the most recent ones declared.
Avnet Inc (Symbol: AVT):
AAON, Inc. (Symbol: AAON):
Linde plc (Symbol: LIN):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 3.06% for Avnet Inc, 0.71% for AAON, Inc., and 1.92% for Linde plc.
In Friday trading, Avnet Inc shares are currently down about 0.5%, AAON, Inc. shares are down about 1.1%, and Linde plc shares are up about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If they do continue, the current estimated yields on annualized basis would be 3.06% for Avnet Inc, 0.71% for AAON, Inc., and 1.92% for Linde plc. Looking at the universe of stocks we cover at Dividend Channel, on 6/2/20, Avnet Inc (Symbol: AVT), AAON, Inc. (Symbol: AAON), and Linde plc (Symbol: LIN) will all trade ex-dividend for their respective upcoming dividends. Avnet Inc will pay its quarterly dividend of $0.21 on 6/17/20, AAON, Inc. will pay its semi-annual dividend of $0.19 on 7/1/20, and Linde plc will pay its quarterly dividend of $0.963 on 6/17/20.
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Looking at the universe of stocks we cover at Dividend Channel, on 6/2/20, Avnet Inc (Symbol: AVT), AAON, Inc. (Symbol: AAON), and Linde plc (Symbol: LIN) will all trade ex-dividend for their respective upcoming dividends. Avnet Inc will pay its quarterly dividend of $0.21 on 6/17/20, AAON, Inc. will pay its semi-annual dividend of $0.19 on 7/1/20, and Linde plc will pay its quarterly dividend of $0.963 on 6/17/20. Avnet Inc (Symbol: AVT): AAON, Inc. (Symbol: AAON): Linde plc (Symbol: LIN): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 6/2/20, Avnet Inc (Symbol: AVT), AAON, Inc. (Symbol: AAON), and Linde plc (Symbol: LIN) will all trade ex-dividend for their respective upcoming dividends. Avnet Inc will pay its quarterly dividend of $0.21 on 6/17/20, AAON, Inc. will pay its semi-annual dividend of $0.19 on 7/1/20, and Linde plc will pay its quarterly dividend of $0.963 on 6/17/20. Avnet Inc (Symbol: AVT): AAON, Inc. (Symbol: AAON): Linde plc (Symbol: LIN): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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If they do continue, the current estimated yields on annualized basis would be 3.06% for Avnet Inc, 0.71% for AAON, Inc., and 1.92% for Linde plc. Looking at the universe of stocks we cover at Dividend Channel, on 6/2/20, Avnet Inc (Symbol: AVT), AAON, Inc. (Symbol: AAON), and Linde plc (Symbol: LIN) will all trade ex-dividend for their respective upcoming dividends. Avnet Inc will pay its quarterly dividend of $0.21 on 6/17/20, AAON, Inc. will pay its semi-annual dividend of $0.19 on 7/1/20, and Linde plc will pay its quarterly dividend of $0.963 on 6/17/20.
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10455.0
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2020-05-08 00:00:00 UTC
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Aaon Inc (AAON) Q1 2020 Earnings Call Transcript
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-q1-2020-earnings-call-transcript-2020-05-08
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Image source: The Motley Fool.
Aaon Inc (NASDAQ: AAON)
Q1 2020 Earnings Call
May 7, 2020, 4:15 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon, ladies and gentlemen. Welcome to AAON Inc. first quarter sales andearnings call [Operator Instructions]
I would like to turn the meeting over to Mr. Gary Fields.
Gary D. Fields -- President and Director
Good afternoon. I'd like to start by reading a forward-looking disclaimer. To the extent any statement presented herein deals with information that is not historical, including the outlook for the remainder of the year. Such statement is necessarily forward-looking and made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. As such, it is subject to the occurrence of many events outside AAON's control that could cause Aaon's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings, including the annual report on Form 10-K and the quarterly report on Form 10-Q.
Now I'd like to turn it over to Scott Asbjornson to discuss the first quarter numbers.
Scott M. Asbjornson -- Chief Financial Officer and Vice President
Welcome to our conference call. I'd like to begin by discussing comparative results of the three months ended March 31, 2020, versus March 31, 2019. Net sales were up 20.8% to $137.5 million from $113.8 million. Net sales for the quarter are up due primarily to our increased sheet metal production from the additional Salvagnini machines that were placed into operation.
Our gross profit increased 68.9% to $42.9 million from $25.4 million. As a percentage of sales gross profit was 31.2% in the quarter just ended compared to 22.3% in 2019. We continue to see overall raw material cost decrease. The company has improved its labor and overhead efficiencies through increased production and absorption of fixed costs.
Selling, general and administrative expenses increased 11.2% to $15.2 million from $13.7 million in 2019. I additionally, as a percentage of sales, SG&A decreased to 11.1% of total sales in the quarter just ended from 12% in 2019. Income from operations increased 142.3% to $27.8 million or 20.2% of sales from $11.5 million or 10.1% of sales in 2019.
Our effective tax rate decreased to 21.5% from 23.5%. The company's estimated annual 2020 effective tax rate, excluding discrete events, is expected to be approximately 25%.
Net income increased to $21.9 million or 15.9% of sales compared to $8.8 million or 7.7% of sales in 2019.
Diluted earnings per share increased by 141.2% to $0.41 per share from $0.17 per share. Diluted earnings per share were based on 52,871,000 shares versus 52,370,000 shares in the same period a year ago.
At this time, I'll turn it over to Rebecca Thompson, our Chief Accounting Officer and Treasurer, to discuss our balance sheet.
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Thank you, Scott. Looking at the balance sheet. You'll see that we had a working capital balance of $132.8 million versus $131.5 million at December 31, 2019. Unrestricted cash totaled $35.7 million at March 31, 2020. Our current ratio is approximately 3.1:1.
Our capital expenditures were $21.9 million. We expect capital expenditures for the year to be approximately $73.2 million. The company had stock repurchases of $5.1 million during the first quarter.
Shareholders' equity per diluted share is $5.79 at March 31, 2020, compared to $5.51 at December 31, 2019.
I'd now like to turn the call over to Gary Fields, our President.
Gary D. Fields -- President and Director
I'd like to talk about some of the sales activity and some of the general environment that we're working in right now. So AAON was a company that was deemed an essential manufacturer, so we've continued to operate through some of the shutdowns that have occurred for others. Our essential nature was proven when we were tasked with providing over 4,000 tons of air conditioning units, a total of 80 50-ton units for two projects in New York. Stony Brook was one of them, and Westbury was the other one. We received the request for that equipment on the 29th of March and within nine days, all of it was on-site. So that was a rather heroic effort by all of our AAON employees and all of the sales channel participants that had to work their portion of the project.
We've continued with a total of 124 units that have gone to the specific coronavirus emergency temporary facilities. But beyond that, we're seeing some new activity recently for support facilities going into the future. We received an order just this week for a project in the state of Maine, it's called Puritan. And it's these people make the swabs that we've heard so much about from President Trump's coronavirus task force that are used in the quick turnaround testing. That project also required us to manufacture specific units for the specific application and provide those in about a week or 10 days. So the order came in just a couple of days ago, and it will go out in the next couple of days.
Now I want to talk about our water-source heat pumps a little bit. So our numbers of water-source heat pumps in Q1 were less than what they had been on a quarterly basis. We had some growing pains in that heat pump business. Some of those growing pains were related to components that we selected, some material suppliers, some of them were just the growing pains that occur when you're developing at a quick rate a new product. So we lost just a little bit of momentum. But we began to regain that. The lead time is very short, so all of this happened rather quickly. At the April bookings on water-source heat pumps strengthened considerably, so the momentum is going the right way. So we've reestablished our momentum, and we look for that to get back on track to improving.
But at the same time, we evaluated the entire team that we have here on staff at AAON, realizing that this was a product that was a bit different than our legacy product and realizing that we didn't have as broad-based of experienced and knowledgeable people in that to flesh out our entire strategic plan for that. So we've been negotiating with some people that were in the final throes of negotiating with that have extensive experience in water-source heat pumps to join our team. And we expect in the next week or 10 days to have these people join our team. And this will allow us to execute the strategic plan that we put together and achieve things that we had talked about for quite a while with this.
The next thing I want to talk about is our Norman Asbjornson Innovation Center. Those of you that have followed us for a few years know that we built a magnificent laboratory. And we've had a grand opening of it and so on and so forth. The physical facility itself is unequaled in the world. The capabilities of that are just not available anywhere else. And we had a core group of people that had been with the company for many years that had great experience with that, but they didn't have enough bandwidth in order to utilize that laboratory to its full capabilities as far as production capacity. But they for the last two years, they've been building that knowledge base in that team. And we finally got to a spot where we could spread those experienced people out time-wise and put on more shifts. So we are, in the next few days, enabling an around the clock, 7-day a week operation of the Norman Asbjornson Innovation Center.
So this goes hand-in-hand with our efforts to accelerate our footprint with water-source heat pumps. And all of it dovetails very nicely together. And I'll have to say from a timing standpoint, concerning the innovation center, that we're doing it just in time, but we didn't wait too long. There was really no effective way to do it any quicker than we did due to construction schedule and training and so on and so forth. So we're very excited about the potential of compressing our road map product development road map. The schedule that we have will be accelerated greatly by this new activity.
I've spoken with our Director of Sales, and he's pooled all of his regional sales managers and they have updated me. They maintain a very close relationship with the sales channel. And I've had a lot of personal phone calls with the sales channel myself, just seeing, where are we? This coronavirus has caused a lot of angst in the world. And so where are we at? Well, at the end of Q1, we were at 90% of our plan on booked orders. So there was a slight impact from it, but it wasn't anything substantial. When they pooled these people to see, were those projects canceled or were they delayed? The overwhelming response is, delayed, not canceled. There's been very, very few cancellations in the pipeline. We've had essentially no cancellations that I'm aware of in our backlog. It's just that the forward-looking pipeline, the forelog, if you will. There was one or two projects that I was made aware of that they had anticipated being July, August, September projects that they've delayed until 2021, but they're very insignificant in the overall scope of things.
As I read through the regional sales managers' comments, it's unanimous, market strength of commercial, healthcare, industrial is very good. Market strength for hospitality has been hit the most. We have been fortunate over the years to participate in a lot of hotels and casinos, both. And some of the casino projects that we knew were out there in the future are on hold. And some of the hotels have hit the pause button as well. I think that's very understandable. We've spoken over the last few quarters about the grow market. The grow market, according to each of the sales managers that participate with their sales channel in that remains neutral. K-12 has been neutral to increasing. And in the Northeast, things are a little bit more constrained than they are in the rest of the United States in that the schools are even at a pause right now. However, I did talk to one of the major players in our sales channel. He's in Philadelphia and Harrisburg, Pennsylvania. And he gave me notice last night that they have quite a few schools that they're about to be able to get released. So not exactly as dire as what the initial thoughts might have been. So overall, we're looking at bookings for the remainder of the year maybe not being exactly on plan, but not being substantially lower-than-planned either. There'll be off just a little bit, it looks like.
When I look at the various markets, I just told you a bit about those. The one thing that I want to emphasize that I've seen some clarity on is healthcare. In this coronavirus situation, it was recognized that while in the urban areas, they have large hospitals and they were able to construct some of these temporary facilities, either using large convention centers, the ship in the case of New York City, or the tents that we participated in. But when you got into the more distributed areas across North America, the rural areas, the suburban areas, then there was a substantial weakness. Over the last several years, there's been a lot of consolidation of healthcare facilities to these urban areas, leaving people to drive maybe as much as 150 miles to get any appropriate care. We're already seeing activity in these areas to reestablish some of those facilities that were mothballed, which gives us an opportunity to update them...
Okay. So I'm not sure how we were interrupted there. So the story on healthcare is that we're going to see a lot of facilities that were mothballed that are going to be renovated and put back in operation. Some of these have sat dormant for quite a while, and it will be a good replacement opportunity. This is an area that AAON participates in substantially with our legacy products.
So I want to talk about the backlog next. March 31, it was $119.6 million versus $166.6 million in one year ago. The $166.6 million, while it seems attractive, was actually a bit detrimental. The real crux of that was that we didn't have our production rate high enough to meet the demand and so we had accumulated and our lead times had lengthened. With the addition of all the Salvagnini machines and appropriate labor force efficiency gains, then, we have been able to increase our production rates considerably. And thus, we've been able to reduce the backlog, which is a favorable thing so that we can get it in alignment with lead time expectations. Since the beginning of Q4, we've begun reducing lead times our published lead times. We've had multiple announcements of lead time reductions. And I would say today that we're probably ranging about probably about 60% less in shorter lead times than we were a year ago. Does that look about yes. eight weeks is our goal. And we're probably we have some products that are six to eight weeks right now. But if you took the whole tranche, we're probably closer to 10 weeks right now. Is that about right, Scott? Yes. Okay. So our goal is eight weeks. While our goal is not to bring in less orders, it's to produce more. So we have put a lot of those Salvagnini machines in and in operation. We have four more yet coming throughout the year. So our production capacity has not yet peaked. And we will be monitoring the two things as they come together, the order volume and the production capacity, but it's very manageable.
So I want to talk a little bit about the supply chain. We've had some minor, I'll call them, dustups with supply chain. They've all been manageable. One of the primary things that's occurred is we have various models of compressors available in our units, going from a base model, and then there's at least 3, we'll call them, upgrade models, of various duties, while we've had a few units that we've upgraded one or two models of compressors in order to produce the equipment because of the availability of them. The other thing that we've done is we've worked with our sales channel and when we had any difficulty due to supply chain, and we've been able to help them work through the custom selections and select something that still met the project requirements. And we were able to meet the needs with the supply chain. Speaking to our purchasing department earlier today, the outlook is fairly stable, but it's not without its challenges, I'll say. But it's all manageable.
The next thing I'd like to talk about is attendance and disruptions. So at our Longview facility, early on in the kind of the row of this coronavirus, we had one employee in the office in Longview at AAON Coil Products that began to show symptoms. And that person quarantined themselves right away, and ended up being positive. And fortunately, they came through it just fine. But we contact-traced everyone that she had been in contact with, and we quarantined those people, and there were no further positive cases. So we've only experienced, knock on wood, one case, and that was in the Longview facility. Longview being one of the company's it's a separate entity, AAON Coil Products, and it has less than it has fewer than 500 employees. So the rules that the government made for that were very favorable for the employees to take off and still be paid quite nicely by these programs. Our attendance went down to a low of 42%. But as of today, we're back up to 80%, and it's been trending upward for the last two nearly well, about two weeks solid, yes. And we're expecting that to continue to trend up.
But there's one other interesting aspect of it. While we were had the opportunity to be on the television news stations to talk about our participation in these temporary hospitals, our newly appointed President of AAON Coil Products, Gene Stewart, was interviewed and they gave him the opportunity to say that we were hiring and that we needed to hire 100 people in order to meet our production requirements. Within four or five days, we had 400 applicants. Now the only problem with that is, is in this situation with social distancing and all, it's very hard to get these people interviewed and onboarded in the same manner that you would in prior to coronavirus. So we have been working on that diligently. So while we're only at 80% of our desired attendance right now, in addition to those people that we expect to be coming back, we'll be hiring more people on top of that. And that effort is going fairly well as far as I know.
Scott M. Asbjornson -- Chief Financial Officer and Vice President
Yes.
Gary D. Fields -- President and Director
Scott's verifying that for me. It's going quite well. In Tulsa, we have 0 cases of coronavirus, again, knock on wood. As of April 1, we had 95% attendance. Well, 92% to 95% is kind of our historic range. There's always people that are out for vacation, standard illnesses, just different reasons that they want to be gone. So you'll never be at 100%. So we were at 95%. Well, we had people that have extensive PTO. Scott, is the number 480 hours what we allow them to accrue?
Scott M. Asbjornson -- Chief Financial Officer and Vice President
That's the limit? Yes.
Gary D. Fields -- President and Director
Yes. So we allow them to accrue up to 480 hours of PTO time, which, as you know, that would be 12 weeks. Well, we normally manage this in a real diligent manner so that we don't have a substantial people out a number of people out at one time. But again, we're doing the right thing, with the coronavirus, if people want to take off and have the PTO time, then of course, we're granting that request. So we went to a low of 64%. I think that date was April 25, was the low. But again, these people used their PTO. They left for a little while. They're coming back. And as of today, we're at 89%. And my understanding of the prospects of coming back to more like full strength is within the next 2...
Scott M. Asbjornson -- Chief Financial Officer and Vice President
Next week.
Gary D. Fields -- President and Director
Next week. Okay.
Scott M. Asbjornson -- Chief Financial Officer and Vice President
The end of next week.
Gary D. Fields -- President and Director
The end of next week. That we're fairly confident that they're coming back. But again, we want to hire approximately 100 people here in Tulsa as well. Correct, Scott?
Scott M. Asbjornson -- Chief Financial Officer and Vice President
We're making good progress. We're down to about 55 left.
Gary D. Fields -- President and Director
Okay. When I first opened that opportunity with Scott and the HR department, it was 100. Now we're down to 55 left, he just informed me. So we're making good progress on that. So with all of that said, with the lower attendance in both operations, miraculously, April was nearly at our expectations for total production. So our efficiency has been just improving over and over and over. I'm very proud of the efficiency. Q1 financial numbers tell you that the efficiency has returned to numbers that you are accustomed to seeing from the AAON of the old. With that, I've finished everything I wanted to say, I would like to welcome Norm to have a few comments here.
Norman H. Asbjornson -- Chairman & Chief Executive Officer
Welcome. Many of you I've been speaking with for several years. I would just kind of like to refresh you and give you a little bit of feel for where we are. When we bought the John Zink Company in October 1, 1988, we bought 92 people along with it. We're doing about $10 million worth of manufacturing and about the similar amount of contract work. We were in the process of getting out of the contract business at that time. We now have slightly over 2,400 people, and you know what we're doing in the dollar. We've enjoyed some spectacular success in that other than for the first three months when we did have a losing time, we have never had another losing quarter since October 1, 1989. And we've had some of the highest success ratios of anybody in the history of the heating and air conditioning industry.
Now if you looked at what we just produced for the quarter, we have an all-time high profitability. That's due to the fact that there was a lot of things changing in the past year. We've gotten back into an inflationary environment. And while we were going through the change from one managerial group to another, we changed out a huge number of people in various levels of management. And while you can teach the new people what the fundamentals are, all the little nuances that are known by the people who have been here for a long time aren't easily transferable. And therefore, those things collectively gave us considerable problems for the past two years.
We have now gone past that. So people now that are have been the replacement people now know those little areas to avoid to cause us problems with our productivity. And so consequently, our productivity has been rising back to its historical range. And the people we have in those replacement positions, I believe, ultimately have at least as good a skill level as those the people who they replaced. And in some cases, they have better skill levels. So the company has transitioned from one generational group to another. It has dropped the average age by a considerable amount. So we now have a fairly young managerial group, whereas three or four years ago, we had a very old managerial group. So the company is much better positioned going forward.
In addition, the new people with the given vigor that is so characteristic of younger people, have moved us along a great deal in our methodologies, in our documentation of what's to be done, and our infrastructure is much stronger than it has ever been. The company has never been in as fine a condition it is with people, systems, infrastructure of all kinds, financials. In other words, we're about the top of the place we've ever been in the past. And so it gives me great pleasure as I bow out of the role of managerial and be just more of a consulting person to work with these people because I see great things potential in the future. We do recognize that we've got a formidable challenge running against the virus, and we, all of us, are somewhat new in this, and it's not going to go away, probably never for almost never. And certainly, it's not going to be contained and put into what you might call a normal sequence for some period of time until the medical community gets some better handles on a medication to control it.
So we believe we're on top of it. Well, we recognize that we could easily have flare ups. We can easily have some problems, but I have very little concern with having it get out of control. We've got too many controls. We've got too much work going on. We've got too many things going on to try and keep ourselves healthy. So I don't expect anything is going to get real bad. Undoubtedly, we are going to have some flare ups. That is for certain. But they're not going to be too detrimental to the future of the company, I guess. So if the industry and the economy holds in, and I believe it will, we came out of when the virus started, we had the strongest economy in the construction industry that we've ever had. And I'm just in the month of May, I am finishing my 60th year in this industry. So I speak with probably the most long-term knowledge in this industry of anybody who's still active.
And I can tell you that it looks very promising to me with one big question mark, and that is, how much damage is the virus doing to our economy? I certainly hope it's not going to destroy too much, but I do have the belief that with the strength that it had prior to going into that, that strength is still out there. And I think it's fairly easily reclaimable, but we do have a lot of challenges in working with it. We believe as far as AAON is concerned, we've got it under control. We know how to work with it. So speaking for one company, I think we're in great condition going forward and more than ready to get back with continued growth in the industry.
I'd like to thank all of you who have helped me make this company what as a fine company it is and look forward to being around and talking to you periodically in the future. Thank you. Bye.
Gary D. Fields -- President and Director
Okay. With that, we'd like to open it up to questions.
Questions and Answers:
Operator
[Operator Instructions] Your first question will come from the line of Mr. Brent Thielman from D.A. Davidson.
Brent Edward Thielman -- D.A. Davidson -- Analyst
Congrats on the quarter and challenging times, and congrats on the transitions, I guess, officially here as well. Yes, I guess a lot to talk about. Maybe I'll just start with the orders that were deferred, I think you only mentioned here maybe one or 2. I can't imagine that's more than a few million dollar of that. I'm just curious, when you guys see that, does that stay in the backlog, do you keep it in the backlog for something that shifts out kind of beyond the year? How the mechanics of that work?
Gary D. Fields -- President and Director
The ones that I talked about deferred were not in the backlog. Those were in the pipeline for the sales channel. They were talking about them that they were pending orders. We had one small order for a grow facility that they had had it in the backlog and had put a hold on it long before coronavirus. And I don't know what their actual difficulty was. I told them it was time to either fish or cut bait here about three weeks ago. And they decided to cancel that order, and then that representative immediately replaced it with two more. So that's the only cancellation that I'm aware of. It was an order for I think, it was about $500,000, if I remember right. Does that right a bell with...
Scott M. Asbjornson -- Chief Financial Officer and Vice President
I don't recall the number.
Gary D. Fields -- President and Director
Okay. Yes. My recollection was it was about $500,000. But again, he replaced it within a couple of days with another one. So the only order in our backlog canceled is just that I'm aware of, is that one order.
Scott M. Asbjornson -- Chief Financial Officer and Vice President
There are some orders which have been delayed due to shutdowns in construction in various states. And those, because the equipment has not left our facility and has not been shipped, still are reflected within our backlog.
Brent Edward Thielman -- D.A. Davidson -- Analyst
Right. And can you guys remind me, I guess this is really more specifically to new construction projects, kind of the timing of when someone comes to you with an order, is it preceding when there's a hole in the ground or sometime after that? Just trying to kind of understand the time line there.
Gary D. Fields -- President and Director
Well, so it varies just a bit based on the pace of the project. If it is new construction, like you just asked for, then the traditional process is the owner solicits bids from general contractors or construction managers, they solicit bids from subcontractors who then solicit bids simultaneously from our sales channel. So pretty much all the bids come together on the same day. It usually takes them the 30- to 45-day time frame to analyze those bids. Then when they're awarded, we go through a submittal process, which is about another 45 days. So about 90 days after bid is when there's an award. And then usually within about 30 to 45 days of that, is when we get a release to manufacture. So somewhere in this award time, some of the trade starts, and it's usually the excavation. And if it's a slab on grade kind of a building, single story, like our plant that we're building in Longview, then we're going to get an order for equipment about the time the slab is in place. If it's a high-rise building where you're putting units on, say, every floor, the timing is the same. But if it's a high-rise building, say, a 10-storey building that your unit goes up on the very top floor, then a lot of times, you'll see three to four floors of steel or structure that are up before we see the order.
Brent Edward Thielman -- D.A. Davidson -- Analyst
Okay. Okay. That's helpful, Gary. And then it sounds like January and February I mean just thinking about the last call, things were trending along fine. It sounds like you might have seen a relatively steep drop in March, but it sounds like April has kind of returned to normal. Just from an order intake perspective. Is that the right way to characterize it, Gary?
Gary D. Fields -- President and Director
It's not quite normal. It's just a little bit short of that. But yes. It's not a drastic change but it's beginning to we could feel when people started reopening their states because things became more efficient. Now all of our sales channel partners, when we talked to them said, we didn't quit working. We have been working remotely from home, but it's very inefficient with time because it's hard to get everyone together in those scenarios to make those decisions. So it just strings out the process. For instance, I was talking to one of the sales channel partners yesterday, that they had intended on sending us orders for a bunch of K-12 schools for the replacement of units for the summertime activity. They had intended on having those into us in early April. Yet, we got the first of them this week, and they said, by next week, we'd have all of them. So their paperwork is running, say, 20 to 30 days behind schedule.
Brent Edward Thielman -- D.A. Davidson -- Analyst
Okay. Maybe one more and I'll get back in line. The hospital-related orders, what's the revenue contribution to that, Gary?
Gary D. Fields -- President and Director
I think our traditional slice of the pie is around 9% of our revenue goes to hospitals. And...
Scott M. Asbjornson -- Chief Financial Officer and Vice President
He's giving the orders.
Norman H. Asbjornson -- Chairman & Chief Executive Officer
The whole job is about $4 million.
Gary D. Fields -- President and Director
You're talking about one specific job.
Norman H. Asbjornson -- Chairman & Chief Executive Officer
On those two jobs.
Gary D. Fields -- President and Director
No, no, that's for about he's talking hospitals in general, the whole market. The whole market runs about you are talking about the whole market, not just the specific two jobs we did?
Brent Edward Thielman -- D.A. Davidson -- Analyst
Well, I guess that's helpful. You said 9% for, I think, hospitals. But the two jobs I'd be interested, too, if you're able to share.
Gary D. Fields -- President and Director
Well, those two jobs in New York, those coronavirus that we delivered in the 1-week time frame, that was $4 million.
Operator
[Operator Instructions] Presenters, your question will come from the line of Mr. Joe Mondillo from Sidoti & Company.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
So Gary, I just wanted to ask regarding your comments on attendance employee attendance and that you finished with sort of production in April meeting your expectations. Were those expectations sort of pre-COVID. So have you changed the expectations based on the economic the markets coming down and the volatility in the stock market and economic downturn? Or was that sort of a pre-COVID April expectations and they're meeting your expectations despite the employee attendance. Could you just clarify expectations that you're referring to?
Gary D. Fields -- President and Director
I am talking pre-COVID. We have not had any reslating of our expectations at this point. With our backlog the way it is, we have not reslated anything yet.
Scott M. Asbjornson -- Chief Financial Officer and Vice President
We're not to the 8-week goal yet.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Okay. So that brings me to sort of the lead times and backlog. You mentioned that your ideal or your lead time goal is eight weeks. What would your what would that translate in the sort of an ideal backlog size? I'm just trying to I want you to frame that because backlog is coming down, and so I just want to get a sense of where should backlog sort of stabilize on an ideal size, given your capacity that you have right now?
Gary D. Fields -- President and Director
It would be like 2/3 of a quarter would be the ideal backlog, and understand that our production rate is increasing. So that's a moving target. So if I took a snapshot in time today, and did 2/3 what's 2/3 of $137 million? It's about $100 million, right? And if you'll go back and look at transcripts from the past, I was asked this question maybe a year ago and said, if you had the ideal backlog when you ended 2019, what would that be? And I said at that point in time, $100 million. So we remain thinking that somewhere between $100 million and $110 million is the ideal backlog because that serves our clients best with lead time but it's also a reflection of the increased production capacity we have.
Now I want to while we're talking about backlog, I want to talk about one or two other things that you some of you might capture, some of you might not. The backlog is for units that are ordered to be built-to-suit. They're built-to-order. We also have a substantial inventory of water-source heat pumps that we sell from the inventory. Those are not in backlog because we ship them within one or two days of the order. So they are in consequential to it. The other thing is our parts business has begun to materialize as something that's fairly substantial for the company, and that doesn't go into backlog. So that's two revenue streams that you put on top of what our production capacity is.
Scott M. Asbjornson -- Chief Financial Officer and Vice President
If I could, they would appear in the backlog to the extent that the order was in-house and had not shipped at the end of the period. So they do show up in the backlog, but only for a blink of an eye, practically.
Gary D. Fields -- President and Director
Correct. That's what I was trying to say. Because of the two day all right.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Got it. And so going back to sort of your April expectations and your conversation about hiring 100 people at Tulsa, and I believe you said 100 at each facility?
Gary D. Fields -- President and Director
Yes, 100 in Longview. Yes.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
I would assume your expectations relative to pre-COVID, which I guess are maintained, would be that orders would be rising in April seasonally and they generally rise into the summer, which I suppose it's correct to imply that's why you're hiring into May and June to handle that increase in order rates. Is that fair?
Gary D. Fields -- President and Director
Well, it the order rate has been stable, but it's we're working on an awful lot of overtime, particularly in Longview. For in excess of a year, we've been running the plant floor probably 20%-plus overtime? Yes, Scott's nodding his head, yes in excess of 20% overtime. So we'd like to gain the efficiency of these people working a standard 40-hour week and have more people rather than wearing them out. Because after people work over time for so long, then their productivity goes down. Tulsa has some overtime as well, and we're trying to eliminate that. But we're still trying to increase capacity, yes.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Okay. So I guess that would bring me to the gross margins, which finally on track, I guess, congratulations, finally getting there. One of your best quarters in a long time. So how would that sort of translate into gross margin? You're bringing on more people, but then your overtime is coming down. And then, I guess, essentially, hopefully, your productivity actually increases. So how are you thinking about the gross margin at this point in time, especially relative to you were talking about a goal of 32% in a seasonally light gross margin quarter being the March quarter, you are almost there. So how do you think about that?
Gary D. Fields -- President and Director
Well, I have said that I was working for a range of 28% to 32%, that that was the historic range of the company, that I actually targeted 30% as being ideal. So we've already gotten beyond what's ideal. And but we're going to see that stabilize. It will go up and down just a little bit. But like I talked about adding some overhead staff in order to develop more water-source heat pump product, for instance. So if I can gain some efficiency by doing away with some overtime and trade that for some people that can develop product for the future, I could probably keep my goal of 30% pretty solidified. So I got a teeter totter here I'm trying to keep balanced. I'm trying to add some assets to the company that will provide for future growth, but I'm also trying to fund them by making this thing more efficient.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Got it. So also, I wanted to ask about the revenue that you saw in the first quarter relative to, I guess, maybe near-term expectations because usually, we see the head and shoulder shape where the out quarters are sort of slightly down and the June and September quarter are a little higher. Is this an abnormal year? You mentioned you stated that orders are sort of stable, and is this a little bit of an abnormal year where maybe the June quarter is comparable to the first quarter? Or do you think you could still see that typical seasonality that you generally see historically?
Gary D. Fields -- President and Director
No, you categorized it first by calling it abnormal. So we've been in an abnormal situation for a couple of years now. We've had more orders than we could produce. So we went into the first day of 2020 with a backlog that was much higher than what was ideal and conducive to good lead times and best practices. So we were able to keep the throttles full. And we went into Q4 the same way because Q4, we typically start turning down. Q4 and Q1 are the two that are usually lower and Q2 and Q3 are usually the top ones that you're talking about. So because we were still gaining capacity, we were able to keep the throttles full forward in Q4 and full forward in Q1. So I would say that if we were so lucky as to duplicate Q1 and Q2, then I would call that a great achievement. Normally, you would say Q2 would be larger, but having some labor challenges just a little bit, and this, that and the other, I don't want to get our hopes up that Q2 is going to outrun Q1 because I just don't see that happening. But I also don't see any substantial decline. I mean it's going to be nip and tuck Q2, possibly looking similar to Q1.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Okay. Yes, I just wanted to clarify that because I wasn't sure. I have one more question. Well, I have a few more questions, but I'll one more question.
Gary D. Fields -- President and Director
No. You go ahead.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
The CARES this is for Scott, I guess. The CARES Act benefit that I read in the 10-Q, I guess this is a tax benefit where you can retroactive full depreciation or something related to going back to 2018. And so I thought your tax rate would benefit, but you stated sort of a guidance of 25%, which is, I think, what you've sort of been talking about over the past year or so. Is there a chance that is lower than 25%?
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
No. What we would be doing is getting accelerated depreciation on the qualified improvement property. So it'll just be a timing difference between our current payable and our deferred tax liability. So it doesn't really impact our overall effective tax rate. It's just the timing of when we would be paying those taxes.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Okay. So your cash taxes? Okay.
Operator
And presenters, your next question will come from the line of Mr. Brian Gaines from Springhouse Capital.
Brian Gaines -- Springhouse Capital Management -- Analyst
I just you had a nice quarter in terms of pricing of the rooftop units. Is are we kind of through the cycle of price increases? You're kind of catching up to where you had to be to get to the margin? Or is there still further pricing to come?
Gary D. Fields -- President and Director
We have not announced any further price increases. We don't see any need to on the near-term horizon. Some raw materials, I just got an analysis from my purchasing department today. We track nine substantial materials that we purchase, copper, steel, aluminum, stainless steel, heat exchanger tubes, coils and compressors. And anyhow, these nine things, they were down 0.8% as a tranche versus a year ago. But they also make up about 70% of all the materials that we purchase. So the other 30% of materials we purchase are harder to scrutinize to that same level, but our feeling is that they are up just a little bit. So I would say our material cost is flat.
Now the one thing I do want to say about price increases is on we had two categories of equipment that we had a price increase on in December of 2019. One of those categories was the equipment that we build in our Longview facility. And since we have a shorter lead time, that didn't fully get into Q1 but part of it did. But Longview is only about, what, 10% to 12% of our revenue. So even if they got a little bump, it's not going to be anything that's going to show up very much. Then another product group that comprises another 10% to 12%. That's our very, very large tonnage units. It got a price increase at the same date. But it's lead time's a little longer, so we're probably looking at a very, very small tweak of that product entering the production floor some time in Q2. And so there is just a very small adjustment yet to be had at the bottom line because of that, but there's nothing further on the horizon.
Brian Gaines -- Springhouse Capital Management -- Analyst
Got it. And you feel pretty good competitively? I know you've had big price increases, but I imagine the industry has as well, so you've kind of just kept up?
Gary D. Fields -- President and Director
Yes. We've done quite well. We had a what we call a rep council meeting. We have six regions, and we select two or three representative organizations from each region, and then we have at least an annual, if not semiannual conference with these people. And that way, we can explore good feedback from the field as a big group. Are we seeing any pricing pressures? We just had that meeting last week, virtually, by the way. Normally, we have it at a nice resort, but the resort's closed and we're all social distancing. So we had it virtually. There was one rep that talked about a little bit of competitive pressure on one particular solid unit. And the rest of the group kind of chimed in and told him how he could position himself better to overcome at that he really didn't need a discount. So I would say the pressure for discounts, the pressure on pricing is very quiet. Our primary driver has been lead time. Until we got this lead time down to a desirable number, and we're nearly there, not quite, I don't think pricing is an issue at all.
Brian Gaines -- Springhouse Capital Management -- Analyst
Okay. And is there any way you can, kind of, give dollar value of orders in March and April, of what it is kind of year-over-year?
Gary D. Fields -- President and Director
No. That's kind of forward-looking information that we don't talk about.
Brian Gaines -- Springhouse Capital Management -- Analyst
Okay. Can you give any kind of expectation for 2Q, kind of, overall, what you're thinking?
Gary D. Fields -- President and Director
Well, I already did when I when Joe was asking questions, maybe you overlooked that. Historically, before I got here, the company had a swing that Q4 and Q1 were usually somewhere in the range of 10% to 20% lower than Q2 and Q3. And so you always saw a 10% to 20% swing between those. And so since I've been here, we've got more orders in, we've lagged on production. So we've kept the production throttles full forward. So we've not seen that same bell curve. So Joe, a minute ago, was asking, do we think the bell curve's back? In other words, you did really good Q1, but is Q2 going to go up 10% or 20%? And I said, no. If we were able to duplicate Q2 what we did in Q1, I think that would be more than a reasonable expectation. And I think it's a possibility, but it's not a promise.
Brian Gaines -- Springhouse Capital Management -- Analyst
No, no. I heard that. I was talking more orders and less, kind of, revenue.
Gary D. Fields -- President and Director
Orders, orders, yes, they have also been most affected by lead time. As we brought lead times down, then orders were beginning to gather some momentum. Then the coronavirus came along and kind of nip that in the bud. And so basically, at the end of March, we were at 92% of our plan or our expectations on orders booked. And we remain kind of in that same range right now.
Brian Gaines -- Springhouse Capital Management -- Analyst
Okay. And is it fair to say, were you kind of heading into COVID into at the end of February, were you at 100% of plan or you're well ahead of plan?
Gary D. Fields -- President and Director
We were really close to plan.
Operator
And presenters, you do have a follow-up question from Mr. Brent Thielman from D.A. Davidson.
Brent Edward Thielman -- D.A. Davidson -- Analyst
Gary, the water-source heat pump sounds like a category, it sounds like you've obviously made some changes, appreciate the comments and what you're trying to do there. I don't think you mentioned this, but are you expecting that product line to get back to kind of growth mode here in the coming quarter? Or is it you're going to take a few more quarters to get there?
Gary D. Fields -- President and Director
I'm going to tell you, it's going to take a little while for this reason, coronavirus probably affected that product category as much and more so than anything. Because the largest target market for us with our current product offering has been high-rise condominiums and hotels, which both are going to be under substantial pressure going forward. But I do have the story of why we got into water-source heat pumps and how we thought we would leverage our legacy product to sales of these. Our sales representative in Albuquerque, New Mexico, also covers El Paso, Texas. Earlier this week, he sent in a very, very nice order for water-source heat pumps, and it was half of the total order volume roughly was our legacy product configured as water-source heat pumps. But these were unique operating characteristics. They were 100% outside air called dedicated outside air water-source heat pumps that were roof-mounted. But it was coupled with a good group of the indoor units that are what we call the WH and WV models, which are the new ones that we've had all this commentary about. Well, all along, the strategy was that those rooftop-style units, we are unique in that there's very few people that make those, if anyone, there are certain operating strategies and certain sizes that we're the only ones that make. That when we have that, that very often they were accompanied by this other water-source heat pump. Well, prior to us going to this effort and putting this new product together, other manufacturers on their line sheet were getting that business. So now they're beginning to give that business to us. And so I was very, very pleased to see this. They did a case study on it on their LinkedIn page. That's how I discovered it, and then I went and looked up the order and saw what a nice deal it was.
Brent Edward Thielman -- D.A. Davidson -- Analyst
Got it. Maybe one quick follow-up. I mean this goal target lead times that you guys want to get it to, do you think you'll be there in the second quarter?
Gary D. Fields -- President and Director
It's going to be really close, really close. I walk the plant floor nearly every day. The people that are out there are working very hard even though we're a little understaffed. And like I said, they met our very close to met our expectations in April. So that helps a lot. Being the orders slowed down to about the 92% level, that's going in the wrong direction for that. But now those orders are going to start coming in. As I said, we've got school orders and things that are beginning to accelerate as the world opens back up. But at the same time, I noticed that we had another new Salvagnini machine that I was quite pleasantly surprised to see that it was here. It was in place. The Salvagnini people were here commissioning it. And they told me that by the end of this week, I would have that. Well, each Salvagnini machine adds appreciably to our production capability. So we're going to have increasing production capability. If we can get these people back in here and get to work, which I think we're going to do, everything's pointing very nicely to that, that by the end of Q2, I think our demand and our production capability will come in alignment to get that lead time right where we want it.
Brent Edward Thielman -- D.A. Davidson -- Analyst
Okay. And by virtue of that, I mean then the sales line is probably going to mimic the order line a little closer, I mean, versus what we've seen.
Gary D. Fields -- President and Director
That would be ideal. That would be ideal.
Operator
[Operator Instructions] Presenters, you also have a follow-up question from Mr. Joe Mondillo from Sidoti & Company.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
So I first wanted to ask about SG&A. It's down year-over-year, but the big thing that I noticed when I looked at the Q, when you add up, I guess, it's profit sharing, salaries and stock comp, you add up those three line items, and they have increased pretty substantially as a percent of sales over the last four or five quarters. Is that just standard sort of wage compensation inflation? And should that sort of stabilize? And I guess, just in a more broad question, just as a whole of SG&A, should we expect SG&A as a usually, you tend to see SG&A as a percent of sales decline as your revenue, you can leverage that. Should we expect that?
Gary D. Fields -- President and Director
Well, I'm going to pick one out of the three that you asked about. I'm going to let Scott or Rebecca handle the other 2. Profit sharing is the one I'm going to pick. Profit sharing is a fixed formula. It's 10% of our profit goes to pre-tax profit, goes to our employees. I'm very proud to say that on Monday, we will be issuing checks for $1,643 per employee that qualifies for our profit sharing. That's for this quarter.
Scott M. Asbjornson -- Chief Financial Officer and Vice President
Virtually everybody.
Gary D. Fields -- President and Director
Virtually everyone except the C-suite. I mean there's some qualifications as to how long you have to be here, but it's roughly, what, six months, roughly?
Scott M. Asbjornson -- Chief Financial Officer and Vice President
Six to nine months.
Gary D. Fields -- President and Director
Sixto nine months depending on when you onboarded. So virtually, anyone that's been here six months-plus is eligible for that profit sharing. So that's $1,643 per employee that are getting that. So that's 10% of our pre-tax profit that goes to that. So that number will always vary with the profit. So as our sales become more profitable, then and sale the profit is a bigger percentage, then that will be as well. And then one other thing to keep in mind is we have a 175% match on their 401k. And so if they'll put in 6%, we'll put in 10.5%. So that also goes for another $172 for all of those employees that are in that 6% category, which again, I walked the plant floor this morning because we announced profit sharing, and I was asking people about it, I did not find one employee that did not contributed the full 6%. So they're all getting that $172. All of them I talked to. Now Scott, would you like to talk about the other two items?
Scott M. Asbjornson -- Chief Financial Officer and Vice President
I will. If you'll notice, our stock comp, what we issued out this first quarter was substantially less than what it was same time last year. As we reduced these volume of options that we issued out, a large part of that was driven by our changes in base wages for our entry-level personnel as we converted more of their total compensation package at the entry-level of the organization into a cash basis and a little bit less of it into the equity platform. So you did see actually our grants decline. But that's the overall comp program that we have. And our base pay is seeing some upward pressure in terms of wages up in all positions. And that was mostly driven by last year. This year, we're already seeing some indications within our database that says that wages are going to back off from the growth rate that they had last year. We're not quite sure how that will play out as the year progresses, but we're already starting to see that inflation rate on the data set declining.
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Okay. Got it. I also wanted to ask about going out, essentially, your independent sales reps and selling the product over the last month or 1.5 months, given sort of the shutdowns and people social distancing, you sort of indicated that your orders have stabilized or whatnot. But, I mean, I would have thought they would have been down even more. And I guess the read-through should be that as it the read-through should be a really good positive, I think, just the fact that your orders are stable and not down. So how have they been able to sell the product without seeing their customers? Or...
Gary D. Fields -- President and Director
I'm going to well, there's several ways. Some of them are pretty crafty. Our representative in Chicago, Windy City reps, led by Jim Wilson. He called me and said, "Gary, I want to share this story with you, and I want you to share this story with some others." He said, we had sales presentation seminars to our community. And we did it by Webex, but we gave them a Grubhub voucher, where we bought their lunch, but they had a Grubhub voucher. So these people, if they logged in, then they validated their Grubhub voucher. They got their lunch brought to them. Now I thought that was pretty clever. I don't remember the exact participation numbers he had, but it was substantial. But that keeps the early part of the sales process rolling. That's the design part of the process you do with consulting engineers. Then as I've heard others speak, other than the very largest projects that require an on-site interview of the contractors. So you're midsized to smaller projects, which tend to be more in our wheelhouse anyhow. Those projects are still being awarded, absent of a long interview process that you might see on a very, very large project.
So it's not as efficient time-wise as it is person to person. But over the years, we've evolved into a business method where with mobile phones and Internet and Webex and Zoom and all these other things, we've been conducting business this way to some degree all along, but not as intensely as we're doing now. So like I say, there's some places that have slowed up a bit more, and there's some that have slowed up a bit less. When I look at it, Pennsylvania, for instance, prior to coronavirus in their region in the Northeast, they were one of the top performers as far as percentage of expectation, and they've fallen back just a little bit. But again, I talked to them yesterday, and they've got school orders coming in to me right away. So they still managed to do the work. It's just it's difficult, but I'm going to fall back to one thing that I've told many of you. We have the finest sales channel partners in the industry, unequivocally. There is no other sales channel that's as good as our guys. They are aggressive. They are innovative, and they are they're just great performers. And so I'm very proud of them. Very proud to be associated with them. And our performance on bookings is a testament to that.
Operator
And presenters, there are no further questions at this time. Please continue.
Gary D. Fields -- President and Director
Well, we want to thank you for joining us. We will talk to some of you again next week when we have our annual meeting of our stockholders on May 12. Until then, have a nice week. Stay safe. Bye-bye.
Operator
And again, thank you, everyone, for participating. This concludes today's conference. You may now disconnect. Have a lovely day, and stay safe.
Duration: 70 minutes
Call participants:
Gary D. Fields -- President and Director
Scott M. Asbjornson -- Chief Financial Officer and Vice President
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Norman H. Asbjornson -- Chairman & Chief Executive Officer
Brent Edward Thielman -- D.A. Davidson -- Analyst
Joseph Logan Mondillo -- Sidoti & Company -- Analyst
Brian Gaines -- Springhouse Capital Management -- Analyst
More AAON analysis
All earnings call transcripts
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends AAON. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaon Inc (NASDAQ: AAON) Q1 2020 Earnings Call May 7, 2020, 4:15 p.m. Welcome to AAON Inc. first quarter sales andearnings call [Operator Instructions] I would like to turn the meeting over to Mr. Gary Fields. As such, it is subject to the occurrence of many events outside AAON's control that could cause Aaon's results to differ materially from those anticipated.
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Davidson -- Analyst Joseph Logan Mondillo -- Sidoti & Company -- Analyst Brian Gaines -- Springhouse Capital Management -- Analyst More AAON analysis All earnings call transcripts {%sfr%} 10 stocks we like better than AAON When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Aaon Inc (NASDAQ: AAON) Q1 2020 Earnings Call May 7, 2020, 4:15 p.m. Welcome to AAON Inc. first quarter sales andearnings call [Operator Instructions] I would like to turn the meeting over to Mr. Gary Fields.
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While we were had the opportunity to be on the television news stations to talk about our participation in these temporary hospitals, our newly appointed President of AAON Coil Products, Gene Stewart, was interviewed and they gave him the opportunity to say that we were hiring and that we needed to hire 100 people in order to meet our production requirements. Aaon Inc (NASDAQ: AAON) Q1 2020 Earnings Call May 7, 2020, 4:15 p.m. Welcome to AAON Inc. first quarter sales andearnings call [Operator Instructions] I would like to turn the meeting over to Mr. Gary Fields.
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Aaon Inc (NASDAQ: AAON) Q1 2020 Earnings Call May 7, 2020, 4:15 p.m. Welcome to AAON Inc. first quarter sales andearnings call [Operator Instructions] I would like to turn the meeting over to Mr. Gary Fields. As such, it is subject to the occurrence of many events outside AAON's control that could cause Aaon's results to differ materially from those anticipated.
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10456.0
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2020-03-11 00:00:00 UTC
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AAON Makes Notable Cross Below Critical Moving Average
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AAON
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https://www.nasdaq.com/articles/aaon-makes-notable-cross-below-critical-moving-average-2020-03-11
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $49.71, changing hands as low as $48.63 per share. AAON, Inc. shares are currently trading off about 5.9% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $40.89 per share, with $60 as the 52 week high point — that compares with a last trade of $48.83.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $49.71, changing hands as low as $48.63 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $40.89 per share, with $60 as the 52 week high point — that compares with a last trade of $48.83. AAON, Inc. shares are currently trading off about 5.9% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $49.71, changing hands as low as $48.63 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $40.89 per share, with $60 as the 52 week high point — that compares with a last trade of $48.83. AAON, Inc. shares are currently trading off about 5.9% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $49.71, changing hands as low as $48.63 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $40.89 per share, with $60 as the 52 week high point — that compares with a last trade of $48.83. AAON, Inc. shares are currently trading off about 5.9% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $49.71, changing hands as low as $48.63 per share. AAON, Inc. shares are currently trading off about 5.9% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $40.89 per share, with $60 as the 52 week high point — that compares with a last trade of $48.83.
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10457.0
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2019-12-13 00:00:00 UTC
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The 12 Best-Performing Industrial Stocks of the Decade
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AAON
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https://www.nasdaq.com/articles/the-12-best-performing-industrial-stocks-of-the-decade-2019-12-13
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It's almost the end of the decade, which makes it an apt time to reflect on which investment themes and stocks performed best over the last 10 years, and to ponder which ones might do best over the next 10.
The 2010s didn't just mark a calendar decade. It's been almost precisely a decade since the U.S. climbed out of the Great Recession -- an event that looms large in this article. As you are about to see, most of the companies to be discussed below were blessed with significantly favorable changes in their end markets over this period. Let's take a look at them, and see if they can give some clues as to what stocks to buy for the next decade.
Image source: Getty Images.
The 2010s best-performing industrial stocks
Data source: Ycharts.
Aerospace flying high
Aerospace giant Boeing and component manufacturers TransDigm and HEICO are essentially geared plays on their industry. The astonishing share price performances of the latter two have largely been a consequence of a combination of good execution and their mutual strategy of being highly acquisitive during the long bull market for aerospace.
Meanwhile, Boeing has made acquisitions, invested in developing Boeing Global Services, and expanded its manufacturing activities.
All three have benefited from a never-before-seen step change in the profitability of the worldwide airline industry and ongoing passenger growth -- a pair of trends driven by deregulation, the scaling back of government subsidies, and the rise of budget airlines. It appears that the Great Recession led to substantive changes in how the industry works.
Data source: International Air Transport Association
Composite material technology company Hexcel has also been a major beneficiary of increased aircraft production, as well as the fact that manufacturers are using more carbon fiber composites (lighter and stronger than aluminum) in their newer aircraft, particularly in wide-body planes.
Spending in the defense sector has also been strong in the last decade, and Boeing, Northrop Grumman, and Teledyne Technologies have benefited. That said, that industry still relies on one major customer, the U.S. government, and investing in the defense sector is always somewhat subject to a view on political matters.
Comebacks for the housing market and the U.S. consumer
The recovery in the housing market had a huge impact on a number of the companies that made this list. As the chart below illustrates, the home-building industry was in a dark place after the recession, but it has been in fairly steady growth mode for a decade.
US Housing Starts data by YCharts
That's been great news for outdoor decking manufacturer Trex, heating ventilation and air conditioning company (HVAC) Lennox International -- 64% of its earnings come from the residential heating and cooling market -- and Sherwin-Williams, the global leader in the architectural paint industry. Indeed, the housing industry's rise goes a long way toward explaining why Sherwin-Williams has outperformed its more industrially focused peers.
SHW data by YCharts
Another company that has benefited from stronger conditions in housing is Patrick Industries. The bulk of its earnings come from making components for recreational vehicles -- furniture, lights and exterior parts. That market does well when recreational spending rises, and when U.S. consumers feel like they have more wealth -- as they do when the prices of their homes are rising -- they tend to spend more. Management believes that spending among the key 35- to 44-year-old demographic is poised for long-term growth after having bottomed out in 2014.
Two outliers
Premium commercial HVAC company AAON is a company seen by many pundits as a potential takeover target in an industry ripe for consolidation. And infrastructure maintenance machinery manufacturer Alamo Group has, along with its peer Federal Signal Corporation (NYSE: FSS) seen strong growth in revenue as a result of the ever-more-urgent need to maintain and upgrade U.S. infrastructure.
ALG Revenue (TTM) data by YCharts
Looking back and looking ahead
Recognizing the directions of long-term trends like those discussed above can translate into stellar returns for investors. So what can we expect looking ahead?
Provided that the global economy remains in growth mode, it's likely that airline passenger growth will too, and the moderate pace of the recovery in U.S. housing suggests an extended period of growth is possible. Meanwhile, the need for infrastructure spending in the U.S. won't go away anytime soon. In other words, some of the trends that drove super stock performance in the last decade should also apply in the next one.
Among the stocks considered here, Boeing looks like it has recovery potential assuming it can resolve its 737 MAX troubles soon; Hexcel could benefit from a pickup in wide-body plane demand; infrastructure spending should give a boost to Alamo Group; and the ongoing recovery in U.S. housing should help Sherwin-Williams, Patrick Industries and Trex.
10 stocks we like better than Boeing
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2019
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends TransDigm Group and Trex. The Motley Fool recommends Heico and Sherwin-Williams. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two outliers Premium commercial HVAC company AAON is a company seen by many pundits as a potential takeover target in an industry ripe for consolidation. It's almost the end of the decade, which makes it an apt time to reflect on which investment themes and stocks performed best over the last 10 years, and to ponder which ones might do best over the next 10. The astonishing share price performances of the latter two have largely been a consequence of a combination of good execution and their mutual strategy of being highly acquisitive during the long bull market for aerospace.
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Two outliers Premium commercial HVAC company AAON is a company seen by many pundits as a potential takeover target in an industry ripe for consolidation. Data source: International Air Transport Association Composite material technology company Hexcel has also been a major beneficiary of increased aircraft production, as well as the fact that manufacturers are using more carbon fiber composites (lighter and stronger than aluminum) in their newer aircraft, particularly in wide-body planes. US Housing Starts data by YCharts That's been great news for outdoor decking manufacturer Trex, heating ventilation and air conditioning company (HVAC) Lennox International -- 64% of its earnings come from the residential heating and cooling market -- and Sherwin-Williams, the global leader in the architectural paint industry.
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Two outliers Premium commercial HVAC company AAON is a company seen by many pundits as a potential takeover target in an industry ripe for consolidation. US Housing Starts data by YCharts That's been great news for outdoor decking manufacturer Trex, heating ventilation and air conditioning company (HVAC) Lennox International -- 64% of its earnings come from the residential heating and cooling market -- and Sherwin-Williams, the global leader in the architectural paint industry. Among the stocks considered here, Boeing looks like it has recovery potential assuming it can resolve its 737 MAX troubles soon; Hexcel could benefit from a pickup in wide-body plane demand; infrastructure spending should give a boost to Alamo Group; and the ongoing recovery in U.S. housing should help Sherwin-Williams, Patrick Industries and Trex.
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Two outliers Premium commercial HVAC company AAON is a company seen by many pundits as a potential takeover target in an industry ripe for consolidation. The 2010s best-performing industrial stocks Data source: Ycharts. SHW data by YCharts Another company that has benefited from stronger conditions in housing is Patrick Industries.
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10458.0
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2019-11-13 00:00:00 UTC
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Noteworthy Wednesday Option Activity: DUK, GTLS, AAON
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AAON
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-duk-gtls-aaon-2019-11-13
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Duke Energy Corp (Symbol: DUK), where a total volume of 13,683 contracts has been traded thus far today, a contract volume which is representative of approximately 1.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 48.8% of DUK's average daily trading volume over the past month, of 2.8 million shares. Especially high volume was seen for the $80 strike call option expiring January 17, 2020, with 4,070 contracts trading so far today, representing approximately 407,000 underlying shares of DUK. Below is a chart showing DUK's trailing twelve month trading history, with the $80 strike highlighted in orange:
Chart Industries Inc (Symbol: GTLS) saw options trading volume of 2,165 contracts, representing approximately 216,500 underlying shares or approximately 48.5% of GTLS's average daily trading volume over the past month, of 446,170 shares. Particularly high volume was seen for the $60 strike call option expiring December 20, 2019, with 705 contracts trading so far today, representing approximately 70,500 underlying shares of GTLS. Below is a chart showing GTLS's trailing twelve month trading history, with the $60 strike highlighted in orange:
And AAON, Inc. (Symbol: AAON) saw options trading volume of 660 contracts, representing approximately 66,000 underlying shares or approximately 47.3% of AAON's average daily trading volume over the past month, of 139,635 shares. Particularly high volume was seen for the $40 strike put option expiring April 17, 2020, with 290 contracts trading so far today, representing approximately 29,000 underlying shares of AAON. Below is a chart showing AAON's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for DUK options, GTLS options, or AAON options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $40 strike put option expiring April 17, 2020, with 290 contracts trading so far today, representing approximately 29,000 underlying shares of AAON. Below is a chart showing GTLS's trailing twelve month trading history, with the $60 strike highlighted in orange: And AAON, Inc. (Symbol: AAON) saw options trading volume of 660 contracts, representing approximately 66,000 underlying shares or approximately 47.3% of AAON's average daily trading volume over the past month, of 139,635 shares. Below is a chart showing AAON's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for DUK options, GTLS options, or AAON options, visit StockOptionsChannel.com.
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Below is a chart showing GTLS's trailing twelve month trading history, with the $60 strike highlighted in orange: And AAON, Inc. (Symbol: AAON) saw options trading volume of 660 contracts, representing approximately 66,000 underlying shares or approximately 47.3% of AAON's average daily trading volume over the past month, of 139,635 shares. Particularly high volume was seen for the $40 strike put option expiring April 17, 2020, with 290 contracts trading so far today, representing approximately 29,000 underlying shares of AAON. Below is a chart showing AAON's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for DUK options, GTLS options, or AAON options, visit StockOptionsChannel.com.
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Below is a chart showing GTLS's trailing twelve month trading history, with the $60 strike highlighted in orange: And AAON, Inc. (Symbol: AAON) saw options trading volume of 660 contracts, representing approximately 66,000 underlying shares or approximately 47.3% of AAON's average daily trading volume over the past month, of 139,635 shares. Particularly high volume was seen for the $40 strike put option expiring April 17, 2020, with 290 contracts trading so far today, representing approximately 29,000 underlying shares of AAON. Below is a chart showing AAON's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for DUK options, GTLS options, or AAON options, visit StockOptionsChannel.com.
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Below is a chart showing GTLS's trailing twelve month trading history, with the $60 strike highlighted in orange: And AAON, Inc. (Symbol: AAON) saw options trading volume of 660 contracts, representing approximately 66,000 underlying shares or approximately 47.3% of AAON's average daily trading volume over the past month, of 139,635 shares. Particularly high volume was seen for the $40 strike put option expiring April 17, 2020, with 290 contracts trading so far today, representing approximately 29,000 underlying shares of AAON. Below is a chart showing AAON's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for DUK options, GTLS options, or AAON options, visit StockOptionsChannel.com.
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10459.0
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2019-10-31 00:00:00 UTC
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Aaon Inc (AAON) Q3 2019 Earnings Call Transcript
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-q3-2019-earnings-call-transcript-2019-11-01
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Image source: The Motley Fool.
Aaon Inc (NASDAQ: AAON)
Q3 2019 Earnings Call
Oct 31, 2019, 4:15 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon ladies and gentlemen. Welcome to AAON Inc.'s Third Quarter Sales and Earnings Call. There will be a question-and-answer period after management's brief presentation. This call will last approximately 45 minutes to an hour.
I would like to turn the meeting over to Mr. Gary Fields. Please go-ahead Mr. Fields.
Gary D. Fields -- President and Director
Good afternoon I'd like to read a forward-looking disclaimer to begin with. To the extent any statement presented herein deals with information that is not historical including the outlook for the remainder of the year such statement is necessarily forward-looking and made pursuant to the safe harbor provisions of the Securities and Litigation Reform Act of 1995. As such it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings including the annual report on Form 10-K and the quarterly report on Form 10-Q. So now
I'd like to turn it over to Scott Asbjornson to discuss the financial results.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Welcome to our conference call. I'd like to begin by discussing the comparative results of the three months ended September 30 2019 versus September 30 2018. Net sales were up 0.5% to $113.5 million from $112.9 million. Net sales for the quarter are up due to our price increases from 2018 and 2019 along with increases in our part and water-source heat pump sales. Our gross profit decreased 16.4% to $27.4 million from $32.8 million. As a percentage of sales gross profit was 24.1% in the quarter just ended compared to 29% in 2018. During the quarter we experienced machine downtime that led to decreased sheet metal production and thus lower unit production and efficiency. Selling general and administrative expenses decreased 1.5% to $13.0 million from $13.2 million in 2018. Additionally as a percentage of sales SG&A decreased to 11.4% of total sales in the quarter just ended from 11.7% in 2018. Income from operations decreased 26.5% to $14.4 million or 12.7% of sales from $19.6 million or 17.3% of sales in 2018. Our effective tax rate decreased to 3.9% from 28.2%. The company's estimated annual 2019 effective tax rate excluding discrete events is expected to be approximately 24.2%. The decrease in our effective tax rate was the result of favorable return to provision adjustments on our R&D credit along with additional credits we received upon filing amended Oklahoma returns.
Net income decreased to $13.8 million or 12.2% of sales compared to $14.1 million or 12.5% of sales in 2018. Diluted earnings per share decreased by 3.7% to $0.26 per share from $0.27 per share. Diluted earnings per share were based on 52722000 shares versus 52627000 shares in the same period a year ago. The results of the nine months ended September 30 2019 versus September 30 2018. Net sales were up 7.8% to $346.8 million from $321.6 million. Net sales for the nine months ended are up mainly due to price increases we implemented in 2018 and '19. Our gross profit increased 10.1% to $83.4 million from $75.7 million. As a percentage of our sales gross profit was 24% as compared to 23.5% in 2018. Material costs have started to decline while the company continues to improve its labor and overhead efficiencies. Selling general and administrative expenses increased 2.7% to $37.5 million from $36.5 million in 2018. As a percentage of sales SG&A decreased to 10.8% of total sales as compared to 11.3% in 2018.
The company's warranty expense continues to improve. Income from operations increased 16.1% to $45.6 million or 13.1% of sales from $39.3 million or 12.2% of sales. Our effective tax rate decreased to 17.4% from 23.8%. The company's estimated annual 2019 effective tax rate excluding discrete events is expected to be approximately 24.2%. As already mentioned our 2018 sic 2019 effective tax rate was lower-than-expected due to favorable return to provision adjustments and additional credits. That is 2019 -- I'm sorry for the year. Net income increased to $37.7 million or 10.9% of sales compared to $30.0 million or 9.3% of sales in 2018. Diluted earnings per share increased by 26.3% to $0.72 per share from $0.57 per share. Diluted earnings per share were based on 52625000 shares versus 52715000 shares in the same period a year ago. At this time
I'll turn the call over to Rebecca Thompson our Chief Accounting Officer and Treasurer.
Rebecca A. Thompson -- Chief Accounting Office and Treasurerr
Thank you Scott. Looking at the balance sheet you'll see that we had a working capital balance of $116.7 million versus $92.8 million at December 31 2018. Cash totaled $28.4 million at December 30 2019. Our current ratio is approximately 3.2:1. Our capital expenditures were $30.8 million for the nine months. We expect capital expenditures for the year to be approximately $48.3 million. The company had stock repurchases of $15.4 million to-date. Shareholders' equity per diluted share is $5.31 at September 30 2019 compared to $4.70 at December 31 2018.
I'd now like to turn the call back over to Gary Fields our President.
Gary D. Fields -- President & Director
Good afternoon. So the price increases have not yet all made it into the production floor. Some of those are still in the backlog because of our extended lead time. We did get some of the price increases in and we look for that to continue to improve. The backlog, as you can see is is reduced a little bit versus last quarter, but it's still up versus 2018. Orders have slowed down very very slightly due to the extended lead time. So we're working on reducing those lead times. I'll talk about that more in just a minute. Water-source heat pumps are doing quite well however. So water-source heat pumps at this time year-to-date are 58% more units than this time in 2018. Quarter over -- similar quarter the Q3 '19 versus Q3 '18 they are up 13%. We've seen recently that water-source heat pump business is beginning to strengthen for us even more so we look to finish the year very nicely. Looking at the Q we're at $21417000 thus far this year. We had forecast something around $25 million for the year and it looks like we should achieve that just fine. We've put in a new parts store. We had one parts store here in Tulsa at the plant. We started another parts store. Its grand opening was June 1 and that was a little bit of a soft opening but we did get it opened then. Right now that parts store is running just slightly behind our legacy parts store gaining every day.
Our parts business continues to be a very strong growing business for us. Our representative firms have increased their parts stores -- number of stores effectiveness of stores and so we're looking for that to continue to grow. We're working on updating and modernizing for 2023 efficiency standards trying to meet those ahead of times. 2018 efficiency standards were somewhat increased and we were easily above those benchmarks. 2023 is a little bit more challenging. I was just in a meeting with one of our major component suppliers and they are going -- bringing to us some new prototype materials because of our NAIC test lab facility and our ability to quickly test these prototype parts. And those should take us to some new high water benchmark efficiency levels. The replacement market continues to be an area of focus. We're making some progress on growing that replacement market beyond. Historically it has been a 50% component of our overall market and we're working on growing that. We believe that there's a lot to be had in that market that our sales channel wasn't addressing as aggressively as they could. And we've put some specialists in place in our sales process to help them become more aggressive at that.
So all of our products are growing pretty equally in the legacy products. And like I said the water-source heat pump is growing at a rate that is far in excess of anything but it's' a start-up business still. 2018 versus '17 it doubled. And 2019 like I said it's up 58%. So we're doing well with that. Not seeing any real change in the markets we're serving. I've mentioned Canadas and data centers in the past and those remain at about the same percentage as they have in the past. So I don't see any real change in what markets we're serving at this point. So the backlog September 30 2019 is $165.3 million. And that is versus $126.8 million September 30 2018. So if we had more sheet metal capacity in Q3 then we would have reduced that backlog even further which is what we're striving to do. But we had sheet metal capacity problems through part of Q3. And what that really was down to was -- is we had a couple of machines that while they were producing they weren't producing at the rate that we needed. So we demoed those machines out in order to make room for new machines. New machines were put in their place and began producing at an initial level in September but they won't be at full speed until probably next week. So we had declining production from -- through the summer boding then out in August and then turning around in September. And we ended September not much short of what our expected run rate was and we've continued to increase that run rate. So we're making headway on it.
We've got several more sheet metal machines yet to install. So we'll be adding capacity to our production capacity. And we've already proven on the plant floor that when we get the sheet metal parts built that we have a good staff on the plant floor to get the units built. We had a grand opening of our new R&D lab earlier this week and it was a resounding success. I'm sure that if you look at any of the industry publications that you've seen coverage of that ASHRAE AHRI the Tulsa newspapers and so on and so forth. This laboratory is going to propel our innovation long into the future. The capacity for innovation we have now is exponential compared to before that was available. Another thing that you may have seen recently was a press release about the new markets tax credit that we attained for the new facility we're building in Longview. This was a very favorable incentive for us.
We appreciate all those that helped us to attain that. And that facility while we haven't done anything other than the ceremony of break ground at this point in time we intend to start moving dirt within the next 30 days. And one year from right now we intend to be building units in that new building. That will give us considerable expansion capabilities of our products that we build in Longview Texas. It also frees up a considerable amount of space here in Tulsa that we had used to warehouse coils that we build in Longview. And that space will be reutilized for additional sheet metal manufacturing equipment here. So building the building there not only increases their revenue capability when it comes online but it also allows for further revenue expansion here in the existing facility in Tulsa.
So with that Norm do you have any comments today?
Norman H. Asbjornson -- Founder Chairman & Chief Executive Officer
Yes. I'd like to make a couple comments. Those of you -- many of you have been with us for quite some time. And I'd tell you this is kind of where I see us being at this point in time. We've made the transition from my management over to Gary's. And while I was the manager some of the long-term managers who were working with us elected to stay on and we were going to try and make it more of a total management changeover which is what occurred. A lot of them stayed. When I turned reins over to Gary they retired. That presented us with 2 things. First of all gave Gary a chance to staff the organization with his people and not have a lot of older people who were ready for retirement to contend with. They were gone. It also presented us with a lot of problems for while we had a lot of young people who were being groomed for those positions they didn't had much experience. I think we've at least equaled the capability of the new management staff but short some experience. We paid a penalty for that shortness of experience over the last couple three years but those days now are rapidly dwindling and going behind us. I see us going back into another period like we ran for so many years earlier in our history where we were getting very fine growth both in volume as well as profitability. Everything is lining up very nicely. I feel very happy and comfortable with what has taken place as we've gone through this. I've been unpleasant and unhappy with momentary times for the past couple three years but those times are all pretty well behind us. So thank you for staying with us. I think we are going to deliver and meet your expectations going forward.
Turning the mic back over to you for questions and answers.
Questions and Answers:
Operator
[Operator Instructions] Your first question comes from Brent Thielman from D.A. Davidson. your line is open.
Brent Thielman -- DA Davidson -- Analyst
Good afternoon. your Congratulations on the opening of the R&D lab. I know there's a lot of work behind that. I guess first on that any updated thoughts. I know it won't be much in terms of contribution this year. But is that -- is up and running? And how we can kind of think about the contribution from that into 2022 to the revenue and earnings line?
Gary D. Fields -- President & Director
Well it has made some contribution in 2019 in that there were 3 projects that were very critical performance either operating strategy or acoustical performance. The design team was not comfortable with any manufacturer that didn't have these testing capabilities. So we were awarded 3 separate contracts that were each fairly significant so that these would be tested. One of those was the Jacob Javits Convention center addition in New York City. We were awarded a contract for 26 very large units 3 medium-size units so 29 units total. And this was based on our ability to prove acoustical performance and thermal performance and airflow performance all simultaneously under load. It's something that's unique to our lab in that the largest unit was 77 feet long 12 feet wide and 8.5 feet tall and it had a capacity of about 180 tons of air conditioning capacity. And so no one else in the world is able to test that unit to those test conditions they requested. And so that was paramount an asset landing that order. We were competing against one of the legacy top players in the market that has we'll say political connections that we do not have in New York City. So we won it strictly based on our technological capabilities with this lab. Another project was Nike.
We had completed a project for them a couple of three years ago for their world headquarters. It was a prototype design from not only the equipment design but also the system type design. It really haven't ever been done before. So there was a lot of in-the-field learning in the commissioning process. When it came time for their next addition on that campus there in Portland it was called the Merch building. We were awarded that because we were able to bring those units into our laboratory and test them at 14 different points of operation. And these were again large units larger than the environmental chambers of any of our competitors. So we were able to do that and land that project again a very very substantial project. The final one is called One Willoughby tower. It's a high-rise office building in Manhattan.
And again this was because of our acoustical capabilities along with our airflow and thermal performance capabilities in our laboratory to be able to do that simultaneously. So there's 3 significant projects that contributed to 2019 revenue that I can identify from the lab. The go-forward on the lab -- there is 3 primary purposes. Each will have their own contribution. Some will be very tangible and measurable. Some will be a little less so. So this witness testing like I described for Javits One Willoughby and Nike. We're assigning a value of about 1/3 of the utilization of the lab in chamber time for that type of activity. 1/3 of the activity we are scheduling for development of new innovative ideas. As I mentioned earlier in the call we have various component manufacturers that manufacture things like fans and compressors and coils that are bringing new innovative ideas to us because of the qualified staff that we have because of the qualified laboratory that we have and the capabilities we have to get that done that don't exist elsewhere in the world. So that will propel our products to maintain our leading position as the greatest value equipment in the HVAC industry. And then the third and final use of the laboratory is the vast majority of our products are certified by AHRI. And AHRI test these units from time to time. There's a certain percentage of every product model type that they pull to test in their lab. So it's incumbent upon us to -- for us to test those things also to make sure that we're in compliance with our published ratings on the equipment. So that kind of sums up what we're going to do with the lab.
Brent Thielman -- DA Davidson -- Analyst
Okay. I guess my next question would just be -- I mean I think you had some recent materials cost tailwinds here. Recognize you still have got some of that old pricing in the backlog. Is there a way to kind of sort out either in dollar terms or percentage terms what the drag was from production and efficiencies versus presumably some tailwinds from materials cost front in the quarter? Just so we can get a better feel of kind of the underlying business going forward.
Gary D. Fields -- President & Director
Sure. About 65% of all the materials we purchase are 90 basis points lower cost today than they were a year ago. The other percentage -- we don't have as good a tracking metrics because there is just a myriad of small purchases. It feels like those are stable though. Our cost has been increased. Salaries and wages has been one significant issue in this low unemployment I guess you'd call it environment that we're operating in. What are we here Scott 3%?
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
3.2%.
Gary D. Fields -- President and Director
3.2% and so we're competing for workers. So we've raised our entry-level wage considerably this year. What is that percentage Scott?
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Well I remember it was 9%.
That's what I recall as well about 9%. And that entry-level position is roughly half of the people on the plant floor. So there's a considerable number of people that got a 9% wage increase. And of course as you go up through the ranks nobody is standing there without some wage increase. So that's put some pressure on us. The real burden in Q3 was that we didn't meet revenue projections revenue goals because of the production status of some of the sheet metal equipment. So we didn't get great absorption on some of the fixed cost. So now that we have -- we actually bottomed out in August with the lowest production rate on a daily basis that we had all year and we finished September at nearly the peak of what we had ever done and we continue to accelerate pass that. And so as we keep adding more of these sheet metal machines we'll be able to increase the revenue. And when we increase revenue we'll get more absorption. So I think that the wage rates will be somewhat offset by the materials when you look at everything in the proper proportion. And so that will stabilize going forward. And so the additional price increases that we get that are in the backlog that are not yet produced those will be accretive to the bottom line.
Brent Thielman -- DA Davidson -- Analyst
Okay. And I guess given the challenges this last quarter but the fact that you've got -- it seems like you've got more things in order here. Would you expect a sequential step up in revenue?
Gary D. Fields -- President & Director
Yes. Yes. Monitoring on a daily basis we've restored to our peak level production and begin to accelerate past that. And so from a revenue standpoint yes we look to have a step up there. So that will get some better absorption of those fixed cost. Plus we're getting more of the price increased backlog out on the plant floor.
Brent Thielman -- DA Davidson -- Analyst
Okay. All right. My final question is just more -- I'm curious from call it your boots on the ground. What do you hear about the end markets? How is kind of quotation activity bidding activity out there? And so you general sense on the nonres markets.
Gary D. Fields -- President & Director
I'm so glad you asked that. I don't know how it is for our competitors. But for us the demand outstrips our ability to produce and that's why we've got such a strong emphasis on getting our production capabilities increased. That's why we've got the capex for the new building. That's why we've got the capex for new sheet metal equipment. We believe that there is a lot of runway left out in front of us with our sales channel that we have. They tell us how much that we've missed this year because of lead times. So as we are able to bring lead times in they're all confident that we can recapture that going forward. So I'm very strong on what's going to happen for 2020. Now this election and impeachment talks and all of that can certainly have an effect. But when we're sitting there with $165 million backlog that represents about four to five months of production and orders haven't quit coming in the door. So the backlog's kind of stabilized around that point or really close to it at this point in time. So I think it's going to be a seesaw battle. As we increase production and shorten lead times I think more orders are going to come. And so that backlog's just going to ebb and flow a little bit. I don't know what the equilibrium is going to be.
Brent Thielman -- DA Davidson -- Analyst
I appreciate that.
Operator
[Operator Instructions] Your next question comes from Joe Mondillo from Sidoti & Company. Your line is now open
Gary D. Fields -- President and Director
Hello, Joe. How you doing today?
Joe Mondillo -- Sidoti & Company -- Analyst
Hi, guys. Good. Doing good. How you guys doing?
Gary D. Fields -- President & Director
Good.
Joe Mondillo -- Sidoti & Company -- Analyst
So just to jump on that last line of questioning. When I look at the AHRI shipment data it looks like you ordered a 200 to 800 ton shipments recently which I believe is sort of your sweet spot. It looks like that market -- the shipments in the market have been actually flat to down actually. And your orders in this quarter were up I believe 25% the orders were up and the backlog's up 30%. So I'm just wondering what -- in terms of your opinion how are you able to generate such strong 25% 30% growth when the market is flat to down seemingly?
Gary D. Fields -- President & Director
That's been our secret sauce for a long time Joe. I think that the years that I spent in the sales channel have equipped me to know exactly what appeals to not only the end-user customer and their markets so that I can help us position our products accordingly but it also helps me to understand what people that we should ally with as our sales channel partners. As we've had discussion before I spent years for the company as a consultant helping them with the sales channel. And then when -- tomorrow is my third anniversary as President. And as I have gone along these three years I've continued to refine that sales channel. And right now my opinion is and I know about the independent sales channel for a lot of manufacturers there are no manufacturers that have a sales channel as good as ours period. I'll put our's up against anyone's. And I think that's a big part of it. So we give them the tools they need to win things like the new laboratory the NAIC laboratory. That gives them tools to win. I just earlier told you about 3 projects in particular. Well our sales channel partners they use those as case studies when they're talking to their customers. You're out there trying to sell a complex project with acoustical considerations and they hand the case study of Jacob Javits to their prospective clients say well they met Jacob Javits Convention Center requirements. I think we can meet yours. So the confidence level swells. So again we're giving them a lot of great tools to be successful with but we also have the very best players in that arena.
Joe Mondillo -- Sidoti & Company -- Analyst
All right. And I just wanted to also get an update on -- I assume given the inefficiencies that continued through the third quarter that lead times continue to be extended if not maybe extended a little further than earlier in the year. I'm just curious given these extended lead times that we've seen for a while what's the update with customer feedback customers going elsewhere? What's the update there?
Gary D. Fields -- President & Director
Well of course you can find a story for just about any way you wanted to spin it. There is no doubt customers have gone to other manufacturers as a compromise because we couldn't meet their needs. But more so -- and again I attribute our sales channel and their competency. For instance our school business normally we don't start seeing much spool up in orders until sometime in February maybe March. For the upcoming summer season we've already begun to see orders. And next week I've got several people coming in here with their customers to sit down and talk schedules when they need to have their orders in in order to meet their schedules. So they are becoming longer-term planners so they've worked around that. But I'm proud to tell you that 2 weeks ago we announced a reduction in lead time because we've turned that production right around and increased production. So about half of the units that we produce we reduce the lead time 2 weeks and that was -- that took place 2 weeks ago. We review that every week for applicability. And I'm going to say that over the next 6 weeks that we will have other announcements on reducing lead time again because of the increased production capability that is coming into play. So it's been manageable. It's been difficult. And yes there's been some lost opportunity. But there's been an awful lot of creativity in the sales channel and with their end-user customers that are very loyal AAON customers that say "Hey it's worth waiting for and let's just make sure we're ordering it soon enough."
Joe Mondillo -- Sidoti & Company -- Analyst
Yes. Well it certainly seems like it's coming through with the orders in backlog. So it doesn't seem like it's affected it too much. In terms of -- just to clarify where you are with production operational efficiencies with the new Salvagnini machines and capacity and such. Did you say September was running at the highest efficiency of the year?
Gary D. Fields -- President & Director
No just short of. We are currently running at the highest efficiency of the year and dollars going out the door and we're doing it with one. So we peaked clear back in April. Our best dollars per day going out of the plant here in Tulsa occurred in April. And then we had some deterioration in May and it just continued to deteriorate as we were trying to push those machines. And then when we finally took the machines out it bottomed out in August. Then we got that activity kind of cleared out. We got some new machines in place. By mid-September we had partial use of the first ones. And there were 3 machines put in place. And as of today we've got about 1.75 machine capability with the full 3 machine capability forecast to be next week. So then we're adding about one machine per month to add 5 more machines. So in the month of October we're back at our peak -- slightly above the peak that we established in April and we're doing it with 100 fewer people as well. So there's been a lot of efficiency gain.
Joe Mondillo -- Sidoti & Company -- Analyst
Something that I've been thinking about also is with the higher capacity the higher volumes do you have to bring on new personnel going into 2020? And if so does that create any lingering inefficiencies as you have to sort of train new personnel? Is that a factor at all?
Gary D. Fields -- President and Director
Well we have a very slight turnover at the entry level a few people per week. So we'll maintain that. For several months now -- about how many months Scott have we been at that stable number we're at right now probably?
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
I'll say three months since stable.
Gary D. Fields -- President & Director
Yes 3 to 4.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
And the turnover has been on a downward trend. So we think we've seen the worst of our turnover problems. But we do have substantial overtime in our Longview Texas operations which we're replacing with some headcount increase.
Gary D. Fields -- President & Director
Yes. So in the Oklahoma operations we've already proven when we get the sheet metal out to the plant floor that we have additional production capability with those people. And we will have to add a few but it's not anything consequential. It's not like we need to add a huge percentage. We will have some slight headcount growth as we get sheet metal production growth. But it's not anything that is out of the ordinary that it's going to be difficult to overcome.
Joe Mondillo -- Sidoti & Company -- Analyst
Okay. And then so last question for me and I'll hop back in queue. What would your -- if you had to sort of think of something what's the biggest risk of getting back to sort of the 30% 31% gross margins in 2020?
Gary D. Fields -- President and Director
Well we've got overhead that we didn't have in those 30% 31% days. We've got overhead with a start-up business in the water-source heat pump. We still don't have -- even if what looks like is going to be about $25 million this year that's still not enough revenue to absorb the overhead of depreciation and other things on that line. So that one dilutes us a little bit. The new laboratory that one dilutes us a little bit as well. Now there's an intangible long-term benefit that I described earlier that helps propel that growth. So you have to invest in order to grow. Those are investments. We believe we're targeting 28% to 32% as the range that we're going to manage this too. And once we achieve -- we're at 24% right now. Wasn't it? If not what this quarter was? Yes. We were 24% now. We've got some price increases that haven't yet hit the plant floor. It was a 5% price increase which we got -- it was in June. We got part of it in the third quarter. So I want to say that maybe 3% to 4% would be accretive.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
In December.
Gary D. Fields -- President and Director
In the December numbers. And then in December...
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
We have a small increase.
Gary D. Fields -- President & Director
Yes. We have a small price increase on select items coming up in December. So we're trying to manage to get to that 28%. And then as we absorb this fixed cost overhead with the additional production capability then I think we'll hone this knife. And if we were to gradually go from 28% up through the year of 2020 then that's a reasonable expectation but it's not going to be wake up tomorrow and it's here.
Joe Mondillo -- Sidoti & Company -- Analyst
Well, good luck. Thanks a lot. appreciate you taking my question.
Gary D. Fields -- President and Director
Thank you, Joe.
Operator
Your next question comes from Chuck Myers from Myers Family Office. Your line is open.
Chuck Myers -- Myers Family Office -- Analyst
I got your time again today.I was hoping -- I had a couple quick questions. One was on the last call you were nicely able to give us what the real-time backlog was. Can you do that again today? What is the backlog as of today?
Gary D. Fields -- President & Director
I was told that I'm not supposed to be doing that actually. That's forward-looking. So I'm not going to do that again. I got scolded the last time actually.
Chuck Myers -- Myers Family Office -- Analyst
Well well OK. What...
Gary D. Fields -- President & Director
I will tell you that...
Chuck Myers -- Myers Family Office -- Analyst
As of today but OK.
Gary D. Fields -- President and Director
Well I will tell you that it's not had a substantial change from the end of the quarter. How is that?
Chuck Myers -- Myers Family Office -- Analyst
Okay. Fair enough. I wanted to make sure I was understanding this correct as it pertains to Joe's question because clearly the backlog is still up substantially year-over-year which is great. Though it looks like in this last quarter obviously it was down about $14 million from the end of Q2 which if you impute that as to how much sales were written in the quarter it was just about $100 million or maybe slightly below if my calculations are correct. Is that -- is there -- is it your sense in Q4 is there any seasonality? Meaning is Q3 usually -- is there any seasonality to sales written in general or not?
Gary D. Fields -- President and Director
Historically there has been seasonality. The anomaly occurred when I came here and there were a lot of things that we were able to put together that we'll call it stored energy in the flywheel that I was able to get out. And so we didn't have the seasonality up until now. And so now the curve looks more traditional looking back for the last many years. There has been some seasonality to it.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
In this backlog four years out we expect that.
Gary D. Fields -- President and Director
Yes. So right. As Scott was pointing out if this backlog starts to burn down then we will put it back up. The luxury we have now that we have not gone into Q4 and Q1 of the following year we have in the past is we've always gone in at kind of a precarious level where you had to be careful you didn't burn off so much backlog that you didn't have anything to build. We don't have that problem. There is an intent to burn the backlog down to get the lead times shorter because our lead times in general are about 2x what they need to be.
Chuck Myers -- Myers Family Office -- Analyst
Okay. Because I was just looking at the sales written for each of the last 4 quarters starting in Q4 of 2018 and it was about $137 million then $128 million then $132 million last quarter and then down to what $99 million this quarter. Based on what you're saying is it reasonable to think that sales written in Q4 would be higher or lower than the $99 million we did this quarter?
Gary D. Fields -- President and Director
They're going to be slightly higher for the reason that we shortened up some lead times. And like I said earlier in the call we've got some customers that in the face of the longer lead times are trying to get their orders in sooner.
Chuck Myers -- Myers Family Office -- Analyst
Okay. And then my last question just going back to -- I think this is one of Joe's questions -- on the gross profit margin. It just seems like you're going to end this year just based on where the first three quarters were at something like 24% 25% something like that. And obviously we're all expecting some reasonably large sales gains over the next year as long as something doesn't strange happen in the economy etc.. But based on what you just said in response to the last question it sounded unreasonable to me to think that we would be back at 30% gross margins for next year and that it's going to take maybe a few years to get there. Did I understand that correctly or did I misunderstand and actually 30% gross margins might be achievable next year?
Gary D. Fields -- President and Director
Well for the year as a whole I don't believe we can do that. If you look at it quarter-by-quarter and said are we going to incrementally increase the gross margins such that we end the year in the range of 30% I think that might be reasonable to expect.
Chuck Myers -- Myers Family Office -- Analyst
And just to make sure we understand the order of magnitude -- this will be my last question. So if you expect that -- we did I think 24% 25% gross margins this quarter. Let's say they go up 1% or 1.5% every quarter getting to 30% by the end of next year so you average out at I don't know 28% or something for next year. What sort of run rate revenues do you think you need to be at to get to that gross margin?
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
I think we can get to the gross margin what you're talking about with our current revenue rate simply because we have the price increases going into effect. And we have a good control over our labor cost at this point and have seen that kind of stabilize. Certainly if we're able to increase revenue on a quarter-over-quarter basis in the coming year we might improve faster than we anticipate as we absorb our overhead.
Chuck Myers -- Myers Family Office -- Analyst
Okay. Great. I appreciate the clarification on the gross profit margin just so we're sort of all on the same page and no one's disappointed as we sort of ramp slowly to that 30% goal over time.
Gary D. Fields -- President and Director
Yes. So I'm going to add to one more question for you that you've asked about the Q4 bookings orders in the door. I just had a young lady hand me a note what we booked today and kind of how we finished out the month. So I'm very confident in the statement that Q4 bookings will be higher than Q3. We've already seen the effect of shortening the lead times and we've also given some indication to our sales channel that we're potentially going to shorten lead time some more so they're engaging with some more commitments. What we've booked through today is very nice.
Chuck Myers -- Myers Family Office -- Analyst
very, very nice. Okay, thank you so much for your time.
Operator
We have no further questions. I turn the call back over to the presenters.
Gary D. Fields -- President and Director
All right. I'd like to thank you for participating in the call today. We'll talk to you in February of 2020 for our Q4 '19 results. Have a nice day.
Operator
[Operating Closing Remarks]
Duration: 49 minutes
Call participants:
Gary D. Fields -- President and Director
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Rebecca A. Thompson -- Chief Accounting Office and Treasurerr
Gary D. Fields -- President & Director
Norman H. Asbjornson -- Founder Chairman & Chief Executive Officer
Brent Thielman -- DA Davidson -- Analyst
Joe Mondillo -- Sidoti & Company -- Analyst
Chuck Myers -- Myers Family Office -- Analyst
More AAON analysis
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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Aaon Inc (NASDAQ: AAON) Q3 2019 Earnings Call Oct 31, 2019, 4:15 p.m. Welcome to AAON Inc.'s Third Quarter Sales and Earnings Call. As such it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated.
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Operator [Operating Closing Remarks] Duration: 49 minutes Call participants: Gary D. Fields -- President and Director Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer Rebecca A. Thompson -- Chief Accounting Office and Treasurerr Gary D. Fields -- President & Director Norman H. Asbjornson -- Founder Chairman & Chief Executive Officer Brent Thielman -- DA Davidson -- Analyst Joe Mondillo -- Sidoti & Company -- Analyst Chuck Myers -- Myers Family Office -- Analyst More AAON analysis All earnings call transcripts 10 stocks we like better than AAON When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Aaon Inc (NASDAQ: AAON) Q3 2019 Earnings Call Oct 31, 2019, 4:15 p.m. Welcome to AAON Inc.'s Third Quarter Sales and Earnings Call.
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Operator [Operating Closing Remarks] Duration: 49 minutes Call participants: Gary D. Fields -- President and Director Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer Rebecca A. Thompson -- Chief Accounting Office and Treasurerr Gary D. Fields -- President & Director Norman H. Asbjornson -- Founder Chairman & Chief Executive Officer Brent Thielman -- DA Davidson -- Analyst Joe Mondillo -- Sidoti & Company -- Analyst Chuck Myers -- Myers Family Office -- Analyst More AAON analysis All earnings call transcripts 10 stocks we like better than AAON When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Aaon Inc (NASDAQ: AAON) Q3 2019 Earnings Call Oct 31, 2019, 4:15 p.m. Welcome to AAON Inc.'s Third Quarter Sales and Earnings Call.
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Operator [Operating Closing Remarks] Duration: 49 minutes Call participants: Gary D. Fields -- President and Director Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer Rebecca A. Thompson -- Chief Accounting Office and Treasurerr Gary D. Fields -- President & Director Norman H. Asbjornson -- Founder Chairman & Chief Executive Officer Brent Thielman -- DA Davidson -- Analyst Joe Mondillo -- Sidoti & Company -- Analyst Chuck Myers -- Myers Family Office -- Analyst More AAON analysis All earnings call transcripts 10 stocks we like better than AAON When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Aaon Inc (NASDAQ: AAON) Q3 2019 Earnings Call Oct 31, 2019, 4:15 p.m. Welcome to AAON Inc.'s Third Quarter Sales and Earnings Call.
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10460.0
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2019-10-02 00:00:00 UTC
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AAON Crosses Below Key Moving Average Level
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AAON
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https://www.nasdaq.com/articles/aaon-crosses-below-key-moving-average-level-2019-10-02
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $44.61, changing hands as low as $42.97 per share. AAON, Inc. shares are currently trading down about 5.8% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $31.55 per share, with $53.27 as the 52 week high point — that compares with a last trade of $43.14.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $44.61, changing hands as low as $42.97 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $31.55 per share, with $53.27 as the 52 week high point — that compares with a last trade of $43.14. AAON, Inc. shares are currently trading down about 5.8% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $44.61, changing hands as low as $42.97 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $31.55 per share, with $53.27 as the 52 week high point — that compares with a last trade of $43.14. AAON, Inc. shares are currently trading down about 5.8% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $44.61, changing hands as low as $42.97 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $31.55 per share, with $53.27 as the 52 week high point — that compares with a last trade of $43.14. AAON, Inc. shares are currently trading down about 5.8% on the day.
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In trading on Wednesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $44.61, changing hands as low as $42.97 per share. AAON, Inc. shares are currently trading down about 5.8% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $31.55 per share, with $53.27 as the 52 week high point — that compares with a last trade of $43.14.
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10461.0
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2019-08-05 00:00:00 UTC
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Aaon Inc (AAON) Q2 2019 Earnings Call Transcript
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-q2-2019-earnings-call-transcript-2019-08-05
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Image source: The Motley Fool.
Aaon Inc (NASDAQ: AAON)
Q2 2019 Earnings Call
Aug. 01, 2019, 4:15 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon, ladies and gentlemen. Welcome to the AAON Incorporated Second Quarter Sales and Earnings Call. There will be a questions-and-answers period after the management's brief presentation. This call will last approximately 45 minutes to an hour.
I'll like to turn the conference over to Mr. Gary Fields. Please go ahead, sir.
Gary D. Fields -- President
Good afternoon, and welcome to the AAON 2019 second quarterearnings call
I'd like to read a forward-looking disclaimer. To the extent any statement presented herein deals with information that is not historical, including the outlook for the remainder of the year, such statement is necessarily forward-looking and made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings, including the annual report on Form 10-K and the quarterly report on Form 10-Q.
So now I'd like to turn it over to Scott Asbjornson, our CFO, to discuss the financial numbers.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Thank you, Gary. Welcome to our conference call.
I'd like to begin by discussing the comparative results of the three months ended June 30th, 2019, versus June 30th, 2018. Net sales were up 9% to $119.4 million from $109.6 million. Net sales for the quarter are up due to our price increases from 2018 and '19 along with increases in our part and water-source heat pump sales. Our gross profit increased 9.4% to $30.2 million from $27.6 million. As a percentage of sales, gross profit was 25.3% in the quarter just ended compared to 25.2% in 2018.
Selling, general and administrative expenses increased 3% to $13.5 million from $13.1 million in 2018. However, as a percentage of sales, SG&A decreased to 11.3% of total sales in the quarter just ended from 11.9% in 2018.
Income from operations increased 15.1% to $16.7 million or 14% of sales from $14.5 million or 13.2% of sales in 2018. Our effective tax rate increased to 22.6% from 19.8%. The Company's estimated annual 2019 effective tax rate, excluding discrete events, is expected to be approximately 27%. Our effective tax rate in 2018 was lower than expected due to the various tax law changes.
Net income increased to $13 million or 10.9% of sales, compared to $11.7 million or 10.7% of sales in 2018. Diluted earnings per share increased by 13.6% to $0.25 per share from $0.22 per share. Diluted earnings per share were based on 52,747,000 shares versus 52,718,000 shares in the same period a year ago.
The results of the six months ended June 30th, 2019 versus June 30th, 2018. Net sales were up 11.8% to $233.3 million from $208.7 million. Net sales for the six months ended are up mainly due to the price increases we implemented in 2018 and 2019. Our gross profit increased 30.2% to $56 million from $43 million. As a percentage of sales, gross profit was 24% as compared to 20.6% in 2018. Material costs have maintained while the Company continues to improve its labor and overhead efficiency.
Selling, general and administrative expenses increased 5.1% to $24.5 million from $23.3 million in 2018. As a percentage of sales, SG&A decreased to 10.5% of total sales as compared to 11.2% in 2018. The Company's warranty expense continues to improve.
Income from operations increased 58.5% to $31.2 million or 13.4% of sales from $19.7 million or 9.4% of sales. Our effective tax rate increased to 23.6% from 19.5%. The Company's estimated annual 2019 effective tax rate, excluding discrete events, is expected to be approximately 27%. As already mentioned, our 2018 effective tax rate was lower than expected due to changes in the tax law. Net income increased to $23.9 million or 10.2% of sales compared to $16 million or 7.6% of sales in 2018. Diluted earnings per share increased by 50% to $0.45 per share from $0.30 per share. Diluted earnings per share were based on 52,590,000 shares versus 52,754,000 shares in the same period a year ago.
At this time, I'll turn the call over to Rebecca Thompson, our Chief Accounting Officer and Treasurer, to discuss our balance sheet.
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Thank you, Scott.
Looking at the balance sheet, you'll see that we had working capital balance of $109.7 million versus $92.8 million at December 31, 2018. Cash and investments totaled $17.7 million at June 30, 2019. Our current ratio is approximately 2.9:1. Our capital expenditures were $16.8 million. We expect capital expenditures for the year to be approximately $48.3 million. The Company had stock repurchases of $11.2 million year-to-date. Shareholders' equity per diluted share is $5.03 at June 30, 2019, compared to $4.70 at December 31, 2018. We continue to remaining debt free.
I'd now like to turn the call over to Gary Fields, our President.
Gary D. Fields -- President
Good afternoon. So first thing I'd like to discuss is the order bookings. Order bookings have slowed slightly here recently. This is a normal cyclical thing but I think it's compounded by our extended lead times. We're seeing quite a lot of pressure because of that.
Even in light of both of those, we're still in excess of 90% of what we had forecast going back for our plan for 2019 as far as bookings coming in the door. That's why you saw the backlog continue to increase this quarter over last quarter and this quarter versus a year ago. So the backlog on June 30 was $179.6 million versus $156.6 million a year ago.
The detriment to that is the longer lead times. So it was all within our abilities to build more, but we run up on some difficulties with the sheet metal equipment in the form of in past years we had a Q1 and a Q4 that would be slightly lower production rate than Q2 and Q3 and it gave us more time to get ahead of the maintenance. While we have this robust economy and the improved performance of our sales channel partners, we've not seen any turndown in Q1 or Q4 of orders coming in. So we've run with the throttles full -- wide open and it's begun to take its toll.
So we revised some of our maintenance strategies. We're getting additional Salvagnini machines. You saw the announcement of four additional machines that were ordered as a result of our 2018 planning activities. And then mid-year this year, we placed an order for an additional four machines. And this will get us ahead of where we're at with our sheet metal equipment.
Scott and his group with the HR have done a great job of getting people in the door, and so we're no longer looking at a shortage of people. Now we're looking at a shortage of sheet metal. And like to say, we recognized this over a year ago that we were going to be coming upon this, and we placed an order for the four machines and just seeing things trending the same direction, we increased it.
So the next thing I'd like to discuss is that backlog of $179.6 million. I've given a little bit of an analysis on the backlog in the past and I'll have an update on that analysis. We are currently 20% of our backlog as of today is at a pricing level that was prior to our March 6, 2019 price increase. So that backlog that we built on in Q2 was predominantly prior to December. So Q3 is going to be predominantly on the December price and easing into the March price.
The remaining backlog, 54% of it, is the March price up until June 5th, when we had an additional 5% price increase. And 26% of our backlog is at the June 5th price level or newer. So what that kind of runs down to is, Q3 will be built at approximately a 4% higher price than was Q2. And Q4, part of the quarter will be built at an additional 2% above that. So we will see some accretion in the gross margin and the bottom line.
The pricing that we have on materials at this point has stabilized. However, I understand that there was additional announcements of more tariffs yet to come just today. We have no idea yet what impact that will have on us but we anticipate that it very well could have some impact. And so I don't want to take all of these price increases being accretive at this point in time because we could see some additional pricing pressures.
Now, let's look at our markets. We continue to have very good distribution across all the segments of the markets that we have traditionally served, commercial retail, office building, medical healthcare, education, manufacturing, lodging, municipalities, data centers and grow facilities. The grow facilities are continued to be another outlook that's improving.
And data centers have kind of stabilized for us, I'm not seeing any additional growth over what we had seen, but it's a stable portion of our business. But grow facilities, it seems to be spreading further and further. Initially, we saw two or three states that we were having some success with grow facilities and now it's multiple states, plus all of Canada. Our representative in the Eastern half of Canada, multiple representatives, they've all participated a significant portion of their order entry this year has been for grow facilities.
For the remainder of the year, we're going to be working on increasing our sheet metal capacity. As I said, we have been adding Salvagnini machines, which our first one arrived about two-and-a-half weeks ago now, and it takes between 30 days and 45 days to get one of those machines put into operation. And we're getting essentially one machine per month for the rest of the year. So we will be increasing that capacity.
Water-source heat pump production has done very good. Do you have the numbers in front of you, Rebecca? I'll circle back to that because I've got the numbers in the 10-Q on that. The R&D lab has come along quite well. It's not 100% complete, but the marquee portion of the new Norman Asbjornson Innovation Center has come into use. We have now tested two units successfully, by the way, for the Jacob Javits Center that we've talked about before. These were tested for acoustical, thermal and air flow performance all simultaneously, something that cannot be accomplished by any other laboratory in the world. One of these units was 130 tons capacity and one was 180 tons capacity. That laboratory has the ability to test a unit all the way to 300 tons capacity. So I was very proud of our engineering department, the fact that what they have been modeling for years and not have the ability to measure empirically with a facility like this, they now have that ability and their modeling proved very solid. So this is something that's going to be beneficial to us in many ways.
The laboratory, we have tasked it with essentially three primary activities. One-third of its operation is for developing new products, innovative new products. We know that acoustics and energy efficiency are both demands out there in the marketplace, and we will be able to -- we're already ahead of the market in a lot of aspects with that. We will be able to move that even further ahead and prove the concept. So that's one-third of the activities.
One-third of the activities planned are for testing projects such as Nike that we've talked about before and Jacob Javits and One Willoughby center, which is a high-rise office building in Manhattan. So we can test these facilities and prove to these people that our equipment does what we say it will do.
And the third activity is that the vast majority of our equipment we produce is certified and rated by AHRI. And so we test this equipment to make sure we're in accordance with our AHRI certification and ratings. So those are the three primary activities for the lab. And I'm very happy to report that the lab is mostly in utilization. There is one chamber yet to be completed. It will be completed late this fall. So we look at somewhere between January and February having 100% utilization of all 10 chambers in our new laboratory.
I'm going to circle back to the water-source heat pumps. And year-to-date, we have produced $6.822 million worth of water-source heat pumps, compared to $2.741 million same period 2018. So we've more than doubled the dollar volume of the water-source heat pump business in 2019. The number of units, 12,666 units as compared to 7,128 units. So some of the units we're building now are at higher dollars per unit obviously, because we didn't quite double the number of units, but we're staying on that pace. We're finally on pace to meet our expectations with the water-source heat pump.
Gross profit. We're still working on improvements. I told you about the price increases that are in the backlog, the expectation is that a significant portion of the price increase will reach the gross margin line. There are some unknowns, as we say, with these new tariffs that are coming, and there's other pricing pressures that could occur that we've not yet seen.
Capital expenditures for the year, we had originally thought we were going to spend around $38 million to $40 million this year. As I said, I went back to the Board in June and asked to purchase four more of the Salvagnini machines. So now with what we think we'll spend on those with Salvagnini's commitment on when to ship them, it's looking like $48 million.
So now, Norm, do you have any comments you'd like to contribute today?
Norman H. Asbjornson -- Chief Executive Officer
No. I'll just say that I'm very pleased that many of you have been with me for a long time. And I'm staying and what we're seeing and helping along and my job requirement's diminishing every day as everybody comes up to speed. And this was a bigger changeover than just replacing my efforts. A lot of the people who have been with the Company from the beginning and even before, when it was owned by other people have retired. And so we've had an enormous transition from a lot of 60- and 70-year-old people to a bunch of 25- and 30- and 35- and 40-, 50-year-old people.
Largely haven't transitioned to people in their 50s or likewise. We've made an almost two generation jump. So this is an organization, which not only is getting all of these manufacturing facilities in continually better condition, more capable, we've made an enormous jump with this laboratory which gives us capabilities that don't exist anywhere in the world. They are significant. We're not talking about marginal additional capabilities, we're talking about very huge additional capabilities, and we're starting to get the benefits from that.
That's going out into the marketplace. People are understanding that we do have this capability. And we do have this credibility and it's going to be materializing in additional business and growth for the Company and our ability to maintain our pricing and get what we want. So we did have a transition problem, which we've gone through for the past couple of years, but we're coming out of the transition problem and we're now fine-tuning back up to historical price levels that we've been running. And we're moving forward with new product and increased capabilities and volume.
I very much appreciated working with many of you for very many years. And I feel very comfortable, very happy because being the largest shareholder, I too am concerned with how it's operating, and I'm most satisfied with the direction it's taking. Thank you.
Gary D. Fields -- President
With that, we'll take any questions from the callers.
Questions and Answers:
Operator
[Operator Instructions]
Gary D. Fields -- President
Do we have any questions?
Operator
Your first question comes from the line of Joe Mondillo.
Gary D. Fields -- President
Hello, Joe.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Hi guys, good afternoon.
Gary D. Fields -- President
Thank you for [Speech Overlap].
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Thanks. I don't know what happened there to be honest. I don't know if you guys had silence in your end as well, but that's -- I can't hear anything.
Norman H. Asbjornson -- Chief Executive Officer
We knew we were that good.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
So I wanted to see if you have any idea or could quantify the effect of the downtime in machinery in the quarter.
Gary D. Fields -- President
Well, obviously, we missed our revenue projection. I will say that May, we were on track to exceed the revenue projection. June, it looked like we were going to be right on it and then it just started falling in June. And I think that on one particular little time frame there, we just had -- we had run the machines so hard and our maintenance personnel were working as hard as they could to keep up with it, but it began to be more than PM, it began to be firefighting.
And so I would say that, again, April was actually on target. May was a little ahead of target and then June fell off. So I would say that if the machinery had held up for us as it did in April and May, then we would have met or possibly even exceeded revenue expectations. So that looks like what the impact was.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
And could you quantify sort of what, I guess, your expectations maybe were if you think you would have been right around there?
Gary D. Fields -- President
I think we would have been plus $5 million for sure if we could have kept the machines running at the same rate they were in April and the better part of May. I think it cost us somewhere around $5 million in revenue in June.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay.
Gary D. Fields -- President
Now, we've gotten ahead of that to some degree and we got the new machine. We got new machines here that will supplement some of these machines that are needing a break, if you will. And you would think that a machine wouldn't need to take a break, but it does. These things are extremely complex, and it's nothing major that shuts them down. They have a lot of hydraulic pumps and hydraulic lines and things like that going to the shears and the punches and so forth. And that's probably been what's most problematic is you just haven't had time to shut it down and service those things, not like we used to do when we had this off-peak time.
So getting these additional machines will keep us from running into what I call the service factor on these. So right now, we're running a bit into the service factor because the demand is so high. And when you do that, eventually, you're going to -- it's going to stack up on you. And I think June, it stacked up on us pretty good. July, we began to get ahead of it. We didn't get entirely ahead of it but we made good progress.
I got a report about an hour ago that we're in as good a shape as we've been in several months on the number of machines that are actually running at their full capability. And then we're within probably three more weeks of having one new machine come online, and then every 30 days after that, we're going to have a new machine coming online for the next seven months.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. So it sounds like July was...
Gary D. Fields -- President
Go ahead, Joe.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
I was just going to sort of sum up. It sounds like July sounds like there was still a little bit of an issue, maybe not as bad as June, maybe a slight issue carrying into August but really not that significant and should be all fine by September. Is that a good way to sum it up?
Gary D. Fields -- President
That's very right. I've got milestones for completion dates for either significant overhauls, repairs, machine additions and so forth that reflect exactly what you just said. And they've been meeting all the milestones for me. We have a very good [Speech Overlap].
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. And then just looking at the operations as a whole, I mean, you sort of addressed a little bit that there's been issues over the last several quarters. How about labor issues in terms of the turnover that you guys were challenged with last year? Any other operational issues? Could you update us on all the rest of the operations and challenges that you've had in 2018?
Gary D. Fields -- President
In 2019? So...
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Well, the issues that you had in 2018, but...
Gary D. Fields -- President
Yes. Okay. All right. So as of today, we have an ideal headcount, actually somewhat surplus by just a handful of people, because the sheet metal machines haven't kept up. So I'm seeing -- when I go down the plant line, rather than seeing units that are nose-to-tail solid with no gaps in between them, some of the product lines, especially in June, I would see gaps between them and that was because the people were assembling them faster than we were able to produce the parts to assemble. And so they were waiting on parts.
So we had a little inefficiency due to that because we had assembly people out there that didn't have an adequate supply of parts. So as we resolved these sheet metal machines, we resolved that. I think Scott and his group have done a stellar job of getting the people in here we need, we're getting the turnover rate reduced. We're getting these people trained better. And so we're in a good position, as these sheet metal machines begin producing more sheet metal, we're in a good position to assemble that. So I think that is not something that's staring at us with any kind of difficulty like it had been.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. And then just in general, aside from the machinery and it sounds like headcount is in a pretty good spot, how are the operations just in terms of efficiencies? How do you see them today compared to a year ago or just in general, how do you see them? Any comment on that?
Gary D. Fields -- President
They're improving. I think there's various struggles throughout these efficiencies that we continue to look at and address and hone. Norm, he went on a little vacation, and he came back, this morning was his first morning back, and he hadn't talked to anybody in the plant. He just looked at what was going on. And he and I sat and had about an hour-and-a-half, two-hour chat this morning. And he says, Gary, he says I think you've got problems in these areas, and I said, OK, I'm working on those but let me go investigate a bit further. So I got production control, I got manufacturing. I said tell me your viewpoint of what's going on out there and they did. And I said, so how many of you have talked to Norm today? And they said, none of us. Why? I said, well, he came in here cold turkey, all fresh from his vacation and told me exactly what was wrong. Now that's pretty stellar right there.
So that's the kind of things that Norm is still doing for us, is he's helping to find where we're not seeing clearly what the issues are. And there's a lot of things that I was able to see that other people weren't and we've been able to resolve those in the sales channel partners, the sales process, the warranty resolution, some of those things. But when it got down to the manufacturing, of course that wasn't my strength. That was a steep learning curve for me. And I've been three years nearly now climbing this hill, on this curb.
And we've done pretty good but not great. And he did great for so many years. I mean, it's quite a bar to jump up to hit the efficiency that he had it running at. But we're getting there, and it was really just quite a revelation to me when he tells me what he believes was the issue. And then when we got to peeling the onion layers back to see where is this occurring, he nailed it exactly. That makes it just awful, by the way.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Certainly seems like a -- more of a mountain than a hill, but seems like things are headed in the right direction.
Gary D. Fields -- President
Well, we have a backlog like we've never had in the history of the Company. We have orders coming in like it's never come in, in the history of the Company. We're only slightly behind what our forecast bookings rate were, and it's because of the long lead times. If we could solve the problems with the lead times, shorten them by getting this production up, meeting our goals for revenue, our lead times would come down and the order bookings would flow again at the rates that we had forecast.
We know precisely why those have turned -- it has nothing to do with the market. I've got sales channel partners all across North America saying, Gary, if you can deliver these units on this date, I've got this order. But when I start adding all that up, heck, I'm ahead of forecast if I could satisfy all of those.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Great. Could you -- just last question for me, and I'll let someone else have a chance. Just the order levels looking at April, May, June, July, how did those trends -- how did the order trends occur over the four months, the last four months?
Gary D. Fields -- President
Up until the second half of June, we were running at 98% to 101% of forecast. And starting about the third week in June, we've begun to retreat slightly versus our forecast to drag us back to about 90% of forecast or a little better right now, 90%, 91% of forecast. So that's when lead time became more and more sensitive, was a lot of these projects that they wanted to order in June, they wanted delivery in August, which in historical times we were able to do. We're just not able to do that right now. Our average lead time right now is much more than the eight to 10 weeks that it had been in the past.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. And just a follow-up I make on that, when do you -- so do you have projections in terms of getting lead times down, in terms of getting these Salvagninis in place and, I guess, also getting your workforce and operations in place? What's your sort of -- what are the lead times right now, and when do you think you'll get them down to, I don't know, it's normal or lower? What are your thoughts on that?
Gary D. Fields -- President
We have put planning together all the way through the end of 2020, monthly planning in both facilities. So one of the things that we did is on Friday, we had a Board meeting, and we -- the Board approved the construction of 195,000 square foot addition to our Longview facility. And let me give you some proportions there.
Longview currently has 234,000 square feet. And this is Phase 1 of a building that has a total plan of 422,000 square feet. But I got authorization on Friday to build 195,000 square feet. That building will not be of any use to us until January 1, 2021. But that's the planning process we're doing. So let's go back to that.
We have in Longview, we have recently relocated a product that we were building in Tulsa. We've relocated it to Longview because they have more capacity to build it there and it fit their product portfolio better than it did here. It's an indoor vertical self-contained water cooler product. So we moved that product down to Longview, which gave us more capabilities here because we weren't disturbed by a product that didn't fit the portfolio so well. So that was a little optimization.
So with that being said, we have forecast our production capabilities month-by-month, actually day-by-day, all the way through 2020. And we will see continuous growth. And at the same time, we're going to be drawing back the lead times. To ultimately answer your question, I think that we will be first quarter before we've got lead times reduced anything materially. And when we've reduced them materially, I think the order intake could outrun that again, and the backlog could go back up. It's going to be a seesaw battle all the way through the end of 2020.
As we gain manufacturing capacity, as we shorten the lead times, it will open up more opportunities. They will fill that lead time and they will fill that capacity. We don't have any issues forecast for getting orders in the door. It's all a matter of managing what's going out the door. And as we get more out the door, there'll be more opportunity for coming in. Does that answer your question, Joe?
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Yes, now it does. I appreciate the color, Gary. I'll hop back in queue and let someone else have a chance. Thanks.
Operator
And your next question comes from the line of Jon Braatz.
Gary D. Fields -- President
Hello, Jon.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Good afternoon, everybody.
Norman H. Asbjornson -- Chief Executive Officer
Hello, Jon.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Hi Norm, how are you?
Norman H. Asbjornson -- Chief Executive Officer
Good.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Gary, as you talk about extended lead times and some production issues and so on, are you hearing from your sales force, your distributors that you've lost some orders? Have they simply walked away or are these -- they keep the orders with you and sort of bite the bullet?
Gary D. Fields -- President
Well, the reason our backlog is big as it is -- is large as it is, is because they bit the bullet on a lot of these and not used them as aggressively as possible and so have we. But we had still lost a tremendous opportunity. I've got a email box full of emails from sales channel partners saying I can't take this order because I can't meet delivery. And so we have failed to book opportunities as a result of lead time, there is no doubt whatsoever. Now what the magnitude of that is, it will be pure speculation but it's material.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Does it -- do you think it -- the failure to your ability to meet some of these lead times or deliver the product, do you think that has legs and that customer -- potential customer won't come back to you or will they come back to you as things improve?
Gary D. Fields -- President
Well, I'm going to tell you that you could pick any one customer and you could grow a case any way you wanted to. You could say there's going to be a customer out there that says, I won't do this again. You could have a customer out there that says, well, I'll have to think about it again. And then when you show them all -- when they've been a longtime AAON customer, they know all of the advantages of AAON, and they're feeling this pressure, then those people will always be loyal to you, they'll always be there. The other thing is, as we upgraded the sales channel, those people that we have on Board, and I'm very pleased with the vast majority of our sales channel at this point in time.
We've worked on refining it for several years now. I started participating clear back in 2013 on helping improve the sales channel. And we've revised it and tweaked on it to the point now where I'm very, very happy with the vast majority of them. Well, these people are the best in the business that if anybody can help us recover from this issue, I believe they can.
Now there was a time when we had some weaker sales channel partners that would absolutely use this as an excuse as to why they were not performing.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Okay. Okay. Good. Gary, with the additional eight new machines you're installing, what kind of a capacity increase is that? What -- how much of additional production capacity will you have now? And I assume they're not replacing the old ones, if these are net new additions.
Gary D. Fields -- President
Well, there's some of both.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Okay.
Norman H. Asbjornson -- Chief Executive Officer
[Indecipherable].
Gary D. Fields -- President
Yes. They will easily keep us in front of our bookings rate that we've seen so far. I mean, it is a significant...
Norman H. Asbjornson -- Chief Executive Officer
[Indecipherable].
Gary D. Fields -- President
Yes, there'll be something else that will show up that will keep us from realizing all of the capacity available by the sheet metal equipment. We're already looking down the road at two or three items that could be the next hurdles, trying to make sure we're prepared. But after we cut and break and bend the sheet metal, then a vast majority of it goes to a foam process to make a double-wall foam panel.
Last year and the year before, we put in new foam presses, additional foam presses. We believe we're ahead of that. But just to make sure, we got more foam presses on the way in both locations, here and there.
Then the next thing is going to be the copper that we bend on these CNC computerized copper benders. Well, just today, I signed purchase orders for two more of those. So we're looking down the road whereas we're not capacity constrained anywhere other than sheet metal now. We're doing a better job of overall manufacturing planning that we've done since I've been here. I got better people in place with better thought processes, starting with Jeff McGee that we were able to get from Salvagnini, last October. He's really helped a lot with this. And he leads our manufacturing planning process. So we're looking at all of the infrastructure. As I told you, we're looking all the way out to the demand. We have a plan all the way up to 2023 as to how this -- we believe it's going to unfold and we're making those preparations. That's what our strategic -- written strategic plan is. And that's why we're ahead of the game, getting the new building going for Longview, moving the product down there.
So to answer your question empirically, it's significant percentage increase because whereas we're replacing some machines -- and this is another reason we went backwards just a little bit. The machines that, in order to replace them, you've got to take them totally out of service, get them out of the way in order to put in a new one in their place.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Sure.
Gary D. Fields -- President
When I look immediately west of my office here, there's a big blank area. It's about 100-foot wide and probably 400-foot east to west that we're just now putting the new machines in. Well, those old machines have some capacity. So we lost a little capacity while we're putting the new machines in there. But then we have accretive machines going in that we had to prepare space for.
So one of the things in this facility planning we had to do, we go through here and find additional meaningful and effective space to put additional machines. It wasn't like we just have a couple of hundred thousand square foot of blank space sitting.
Norman H. Asbjornson -- Chief Executive Officer
[Indecipherable].
Gary D. Fields -- President
Yes, some of it was relocating this product to move it to the new building in Longview. Doing that made space for two Salvagnini machines right there. So I'm going to say it's considerably accretive. Exact percentage, I don't have a figure in my head right now.
Jon Braatz -- Kansas City Capital Associates -- Analyst
But I guess, importantly, it sounds like, as you look forward, you don't see any production bottlenecks, serious production bottlenecks, assuming the demand for the product continues to be strong.
Gary D. Fields -- President
That is correct, Jon. I said to people, we got about a 60-day knothole that we got to squeeze through here. And in about 60 more days, we're going to come through that knothole, we're going to be able to improve lead times, we're going to be able to improve on-time delivery performance and we're going to have additional manufacturing capacity.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Okay. And one last question. Gary, in your commentary, you talked about a couple of unknowns and maybe cost, if you want to call it cost unknowns. You mentioned tariffs, but you also referenced maybe some cost increases in other areas. And you really didn't say anything specific, is there something on your mind about some cost pressures elsewhere?
Gary D. Fields -- President
Well, common sense tells me that if there was a tariff -- let me give you an example.
Vast majority of our compressors come from Emerson Technologies, Copeland. So, the vast majority of those come from either Lebanon, Missouri or somewhere up in Ohio. So you'd say, well, the tariff doesn't affect that. Well, it does. There's two or three parts inside that compressor that are made in China that now have a tariff on them potentially.
So I've not gotten an announcement from Emerson of any additional price increase. But it wouldn't surprise me if any moment they don't say, you know what, we're building these two or three components in China and they just got an additional tariff put on them, so here's your price increase on your compressor. So I just think there's going to be a ripple effect that I cannot put my thumb on right now and give you a definitive this went up or that went up. I think that's where I'm speculating that there's going to be some inflationary pressures on some of these components.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Okay. I think one of your component suppliers is Baldor, if I remember correctly. Would...
Gary D. Fields -- President
That is correct.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Would they have the same -- potentially the same issues in terms of parts coming from China?
Gary D. Fields -- President
They do.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Okay.
Gary D. Fields -- President
And then, we use a lot of variable frequency drives or electronically commutated motors. But the solid-state electronic components for those, by and large, come from China. So there's some little contributory parts and some larger finished components that I believe are going to affect the price of those larger finished components.
Jon Braatz -- Kansas City Capital Associates -- Analyst
Okay, very good. Gary, thank you very much.
Gary D. Fields -- President
Thank you, Jon.
Operator
And your next question comes from the line of Chuck Myers [Phonetic].
Chuck Myers -- Myers Family Office -- Analyst
Hi, guys. Thanks so much for your time.
Gary D. Fields -- President
Yes, sir. Chuck, how are you today?
Chuck Myers -- Myers Family Office -- Analyst
Good. Just a few, I think, relatively quick questions and maybe one or two longer ones. You mentioned that you are seeing some orders written slowdown recently. I'm curious, can you give us a real-time backlog number versus the $179 million from a little over a month ago?
Gary D. Fields -- President
Sure. Let me pull up my daily dashboard and tell you what it was this morning. Take me just a second here to find it. It comes in at 3:30 in the morning, well, I came in at 3:25 this morning. Our backlog, as of this morning is $173,793,355.
Chuck Myers -- Myers Family Office -- Analyst
Perfect. Thank you. My second question is it seems like given what we're seeing with sales each quarter and the back -- changes in the backlog, that your order intake is something like $130 million, $135 million a quarter, which it would have -- if that's right, it appears that you're adding enough capacity to meet that demand and then start working down the backlog over the next quarter or two. Is that sort of a right guestimate?
Gary D. Fields -- President
And then some. That's exactly right. When we sat down -- I had been doing a rolling 12-month forward forecast and I extended that to 18 just so -- because the lead time from when -- when I go to the Board and say, I need equipment. By the time I get that approval, by the time I order it, by the time I get it in here and by the time I install it, I'm looking at close to a year. So when I was only looking with good solid numbers 12 months out, I didn't have enough time to respond.
So I extended that planning process on distinct activities out to 18 months. Now we have a five-year strategic plan and we've kept that in mind. When we're doing things like building the building in Longview, that 195,000 square foot is forecast to take us deep into 2023. But then we said wait a minute, what's going to happen after that? So we've got plans already drawn to take that building, we can add 65,000 square foot or 70,000 square foot at a time if we choose or if the market demand's strong enough, we can just jump out there and finish it at 422,000 square foot.
So whereas we got slightly behind the curve on manufacturing capacity and this demand was much stronger than we thought it was going to be with the original thought process when I came here and we thought we were kind of in line with it, but the demand has exceeded that. So now we have retooled our thinking not only to catch up with what the current demand is but to get ahead of it and stay ahead of it.
Chuck Myers -- Myers Family Office -- Analyst
Got it. And if I look back at the last peak margin year, it was 2016, you guys did just under 21% EBIT margins and just around 24% EBITDA margins. It's looking like 2020 might sort of be the peak year in this cycle. And who knows where the economy is going, but let's just assume that's the case. Given the product mix changes that you've had over the last few years and assuming that everything sort of goes as you think, do you think that the blended margin of this business in -- looking at 2020 will be above, at or below the 2016 peak margins?
Gary D. Fields -- President
Well, I'm targeting 2016. That was a stellar year. And so I'm targeting those kinds of margins. What we have stated is that we are now managing this business aggressively for a gross margin between 28% and 32%. And then we're doing everything we can to contain cost below that gross margin number, the SG&A.
But understand, one variable to the SG&A, as our profit goes up, our profit sharing goes up. So it's kind of a management issue there. But it's my expectation that we have the abilities, barring any unforeseen circumstances to restore this business to 28% to 32% gross margin range and contain our cost for the SG&A other than the profit sharing that I mentioned. So we should be able to manage back to EBITDA very close to what you've stated.
Chuck Myers -- Myers Family Office -- Analyst
Okay. So that would be at sort of the high end, it sounds like, that would be a goal but it certainly sounds like...
Gary D. Fields -- President
It is definitely the high -- the high end...
Chuck Myers -- Myers Family Office -- Analyst
But it doesn't sound like there's much ability to get beyond that in this business, though.
Gary D. Fields -- President
No, but if we're increasing the revenue at those percentages, we're increasing the dollars to the bottom line. So our earnings per share is going to continue to increase and that's the ultimate goal. Put more cash in the bank.
Chuck Myers -- Myers Family Office -- Analyst
Got it. And two last quick questions. This quarter, I think your tax rate effective was on 22.5% and you keep saying around 27%. I assume there's just some discrete items in the quarter. But going forward, is 27% sounds like the right tax rate for the next few years if nothing changes?
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
That would be correct. Our discrete items are typically the excess tax benefit on our stock awards, which as our stock price goes up, the benefit is typically bigger. But yes, it should be 27%, excluding those discrete items.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
And we also have been using equity more aggressively in the last few years. So the possibility of that continuing to be an issue is certainly present.
Chuck Myers -- Myers Family Office -- Analyst
Okay. And then on the share repurchase, obviously I think you have a lot of fans on the call. You've built a great company here, but at some price, buying back shares probably isn't a great use of capital, just given where the multiple on the stock is. Do you guys -- can you just give us 30 seconds on how you think about at what price the price is too high?
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Well, let's put it this way. From my perspective, this is Scott Asbjornson, we're using equity as a significant part of our compensation. Typically, it's going out in the form of a stock option which requires our employees to buy it at the price at which that option is issued. Therefore, I would tend to say that it would not be unreasonable for the Company to be in the market reabsorbing those shares that are being issued at some price relative to what those people are receiving as an option.
We certainly don't want to dilute our existing shareholders. So we are watching our outstanding share count carefully and going to be trying to maintain a flat to slight decline over time.
Chuck Myers -- Myers Family Office -- Analyst
Great. Thanks, guys.
Operator
Your next question comes from the line of Brent Thielman.
Gary D. Fields -- President
Hello, Brent.
Operator
Brent, your line is open.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Brent, we are having technically difficulties with your line it seems like.
Operator
Your next question comes from the line of Matt McGeary.
Gary D. Fields -- President
Hello, Matt, how are you doing today?
Matt McGeary -- Eagle Asset Management -- Analyst
Good. Thank you. Thanks for the time, I appreciate it. Just a couple of quick ones. I was glad to hear that you've made good progress on the labor front. I'm just curious, maybe some commentary on how you've been managed to do that given the challenges in the economy broadly on that front, one.
Two, I'm hoping you could give us a little more color on the end market. Is there particular areas of strength that you're seeing? And I'm also curious what percentage of your business now roughly is that -- the grow facilities. Thank you.
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
So, this is Scott. Relative to the personnel, probably one of the biggest things we did earlier this year was we determined that the economy was going very well for the entry-level workers. And so we raised our entry-level wage somewhat aggressively to try to make sure that we were as competitive and attractive as we could be to those incoming employees. We believe we've got a good mix at this point to be competitive. And then we're doing obviously some additional on-boarding efforts to try and make those people feel welcome and a part of our team when they join us.
Gary D. Fields -- President
Yes. So what was his -- after the onboard -- after the labor issue, what is your next question, Matt?
Matt McGeary -- Eagle Asset Management -- Analyst
Just curious if you could provide a little bit more color on -- you made some comments about various end markets. I'm just sort of curious if you can give us a little more flavor on which areas are particularly strong. And I'm curious specifically about the grow facilities and how big of a part of your business that is today.
Gary D. Fields -- President
Grow facilities at the end of 2019 could very well account for close to 10% of our revenue. So that's come from two years ago, it was 0%. So that's pretty significant. The other markets have all appreciated at about an even level to get us to where we're at today. So there's been no other outlier that's been a significant increase. They'd just all come up at about -- it's like the tide brought all of them up together. The grow facility, like I say, is one that it's very likely to approach 10% of our revenue. And the good thing is, is that our representatives have done a great job of distributing that across all of our products.
We have products that are built in Longview that they've applied to grow facilities, we've got water-source heat pumps they'd applied to grow facilities as well as packaged rooftop units. So they've been very creative with what they've done and how they've done it. But the real overlying thing there is, is that we have an operating strategy available in all three of those product styles. The split system, indoor air handler, outdoor condensing unit, the water-source heat pump and the packaged rooftop. We have operating strategies that are favorable for that grow facility unlike a lot of our competitors.
Matt McGeary -- Eagle Asset Management -- Analyst
Thank you.
Operator
And your next question comes from the line of David Durman [Phonetic].
David Durman -- -- Analyst
Yes. Hello.
Gary D. Fields -- President
Hello, David, how are you doing?
David Durman -- -- Analyst
I'm well. Thanks for this call guys. A couple of questions here. One of the previous questioners said they were looking at sales and the change in backlog and were concluding that the Company was generating orders of, I think, they said $130 million to $135 million, which I think you guys concurred with. I understand there are a lot of puts and takes, but is it fair to assume that the Company's goal, since that sort of net order number has sort of flatlined around that $130 million to $135 million...
Gary D. Fields -- President
That's per quarter.
David Durman -- -- Analyst
Per quarter, thank you. You're trying to get your production to be in line with that level? Is that a [Speech Overlap]?
Gary D. Fields -- President
I need it greater than that, because if I was able -- the first month that we have put out as much as we brought in was July. And it was because July orders turned down as I said. So, if we can keep narrowing that gap to where -- if we can build more than that's coming in, then the lead times will shorten, then the opportunities will reemerge. So it's going to be a seesaw between the two.
So right now, I think that $134 million, $135 million per quarter is a very accurate number of what's been coming in the door. I just looked at what we've gotten, that's very accurate. And of course, we've only been putting out $119 million, $120 million, out the door. So that's why the backlog has grown, very easy math, it's very public there.
We have got -- we have got to get the backlog reduced in order to reduce our lead time, and so we've got to get the production rate up. If we were capable of running $150 million a quarter at this point in time, if I could just wave a magic wand, the demand is there, we can run $150 million a quarter, no problem, from orders coming in to support that. We just haven't yet been able to reach that level. But that's what all this planning is for, is to try and get to that kind of capability.
David Durman -- -- Analyst
That makes sense. I was interested to learn, as you explained, that grow facilities are maybe going to approach an exit rate of 10% of the business. Could you remind us, you said they were near zero, was it -- did you say a couple of years ago?
Gary D. Fields -- President
Yes, I'm going to say -- the first time that they hit my radar screen at all was a few months -- I became the President November of '16, and I'm going to say that there was a person came in here in early '17 that wanted to make a deal with us, that he was going to focus on grow facilities, he wanted to have the ability to go approach it on a national basis.
We knew nothing about the grow facility industry, how to approach it. He was our first entree to that. And he started off on that quite successfully. He continues to run at a very nice rate. But then as time has gone by since early to mid-2017, as time's gone by, we've seen that become more widespread. But we've also seen the adoption of legal cannabis in more states and then the legalization across the entire country of Canada in this time frame as well. So...
Norman H. Asbjornson -- Chief Executive Officer
The build-out of the industry.
Gary D. Fields -- President
Yes, the build-out of the industry. Last count I had, there was something around 19 or 20 states that had, in one form or another, legal cannabis, whether it was recreational or medical. If you drive across the turnpike in Oklahoma right now, all the billboards you see is about cannabis facilities. It's astounding. And so this is a fast-emerging business. And I don't know where it's going to flesh out. But I would forecast that within the next three to five years, it will be legal in all 50 states in one form or another. And then the federal government is going to have to address it.
And this could -- we could be on the very leading edge of what's happening here. It could take a substantial upturn until it reaches its saturation level, which could be several years down the road.
David Durman -- -- Analyst
Yes. Well, it's interesting. I'm curious, you mentioned both the sales here in the States and I think you mentioned earlier in the call, Eastern Canada. Do you have a rough sense for how large the Canadian piece of that business is relative to the business here in the US?
Gary D. Fields -- President
Year-to-date, it's been close to half of our opportunity.
David Durman -- -- Analyst
Understood. Well, I appreciate your enthusiasm for it. I'd say obviously there comes some risks with that as well as you sort of went outside yet federally legal, but we'll see where things go. I appreciate it. It's very interesting. Thank you for the time.
Gary D. Fields -- President
Yes.
Operator
[Operator Instructions] And there are no further questions at this time.
Gary D. Fields -- President
Well, thank you for participating in the call today. We'll speak to you again in November for our third quarter results. Have a nice day.
Operator
That does conclude today's conference. Thank you for participating. You may now disconnect.
Duration: 64 minutes
Call participants:
Gary D. Fields -- President
Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer
Rebecca A. Thompson -- Chief Accounting Officer and Treasurer
Norman H. Asbjornson -- Chief Executive Officer
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Jon Braatz -- Kansas City Capital Associates -- Analyst
Chuck Myers -- Myers Family Office -- Analyst
Matt McGeary -- Eagle Asset Management -- Analyst
David Durman -- -- Analyst
More AAON analysis
Transcript powered by AlphaStreet
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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Aaon Inc (NASDAQ: AAON) Q2 2019 Earnings Call Aug. 01, 2019, 4:15 p.m. Welcome to the AAON Incorporated Second Quarter Sales and Earnings Call. Gary D. Fields -- President Good afternoon, and welcome to the AAON 2019 second quarterearnings call I'd like to read a forward-looking disclaimer.
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Duration: 64 minutes Call participants: Gary D. Fields -- President Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer Rebecca A. Thompson -- Chief Accounting Officer and Treasurer Norman H. Asbjornson -- Chief Executive Officer Joe Mondillo -- Sidoti & Company, LLC -- Analyst Jon Braatz -- Kansas City Capital Associates -- Analyst Chuck Myers -- Myers Family Office -- Analyst Matt McGeary -- Eagle Asset Management -- Analyst David Durman -- -- Analyst More AAON analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Aaon Inc (NASDAQ: AAON) Q2 2019 Earnings Call Aug. 01, 2019, 4:15 p.m. Welcome to the AAON Incorporated Second Quarter Sales and Earnings Call.
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Duration: 64 minutes Call participants: Gary D. Fields -- President Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer Rebecca A. Thompson -- Chief Accounting Officer and Treasurer Norman H. Asbjornson -- Chief Executive Officer Joe Mondillo -- Sidoti & Company, LLC -- Analyst Jon Braatz -- Kansas City Capital Associates -- Analyst Chuck Myers -- Myers Family Office -- Analyst Matt McGeary -- Eagle Asset Management -- Analyst David Durman -- -- Analyst More AAON analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Aaon Inc (NASDAQ: AAON) Q2 2019 Earnings Call Aug. 01, 2019, 4:15 p.m. Welcome to the AAON Incorporated Second Quarter Sales and Earnings Call.
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Duration: 64 minutes Call participants: Gary D. Fields -- President Scott M. Asbjornson -- Vice President, Finance, and Chief Financial Officer Rebecca A. Thompson -- Chief Accounting Officer and Treasurer Norman H. Asbjornson -- Chief Executive Officer Joe Mondillo -- Sidoti & Company, LLC -- Analyst Jon Braatz -- Kansas City Capital Associates -- Analyst Chuck Myers -- Myers Family Office -- Analyst Matt McGeary -- Eagle Asset Management -- Analyst David Durman -- -- Analyst More AAON analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Aaon Inc (NASDAQ: AAON) Q2 2019 Earnings Call Aug. 01, 2019, 4:15 p.m. Welcome to the AAON Incorporated Second Quarter Sales and Earnings Call.
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10462.0
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2019-05-29 00:00:00 UTC
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Ex-Dividend Reminder: CenturyLink, Clearway Energy and AAON
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AAON
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-centurylink-clearway-energy-and-aaon-2019-05-29
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 5/31/19, CenturyLink Inc (Symbol: CTL), Clearway Energy Inc (Symbol: CWEN), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. CenturyLink Inc will pay its quarterly dividend of $0.25 on 6/14/19, Clearway Energy Inc will pay its quarterly dividend of $0.20 on 6/17/19, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/1/19. As a percentage of CTL's recent stock price of $10.21, this dividend works out to approximately 2.45%, so look for shares of CenturyLink Inc to trade 2.45% lower — all else being equal — when CTL shares open for trading on 5/31/19. Similarly, investors should look for CWEN to open 1.30% lower in price and for AAON to open 0.35% lower, all else being equal.
Below are dividend history charts for CTL, CWEN, and AAON, showing historical dividends prior to the most recent ones declared.
CenturyLink Inc (Symbol: CTL):
Clearway Energy Inc (Symbol: CWEN):
AAON, Inc. (Symbol: AAON):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 9.79% for CenturyLink Inc, 5.20% for Clearway Energy Inc, and 0.70% for AAON, Inc..
In Wednesday trading, CenturyLink Inc shares are currently up about 0.8%, Clearway Energy Inc shares are down about 1.3%, and AAON, Inc. shares are off about 1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If they do continue, the current estimated yields on annualized basis would be 9.79% for CenturyLink Inc, 5.20% for Clearway Energy Inc, and 0.70% for AAON, Inc.. Looking at the universe of stocks we cover at Dividend Channel, on 5/31/19, CenturyLink Inc (Symbol: CTL), Clearway Energy Inc (Symbol: CWEN), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. CenturyLink Inc will pay its quarterly dividend of $0.25 on 6/14/19, Clearway Energy Inc will pay its quarterly dividend of $0.20 on 6/17/19, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/1/19.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/31/19, CenturyLink Inc (Symbol: CTL), Clearway Energy Inc (Symbol: CWEN), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. CenturyLink Inc will pay its quarterly dividend of $0.25 on 6/14/19, Clearway Energy Inc will pay its quarterly dividend of $0.20 on 6/17/19, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/1/19. CenturyLink Inc (Symbol: CTL): Clearway Energy Inc (Symbol: CWEN): AAON, Inc. (Symbol: AAON): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/31/19, CenturyLink Inc (Symbol: CTL), Clearway Energy Inc (Symbol: CWEN), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. CenturyLink Inc will pay its quarterly dividend of $0.25 on 6/14/19, Clearway Energy Inc will pay its quarterly dividend of $0.20 on 6/17/19, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/1/19. CenturyLink Inc (Symbol: CTL): Clearway Energy Inc (Symbol: CWEN): AAON, Inc. (Symbol: AAON): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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If they do continue, the current estimated yields on annualized basis would be 9.79% for CenturyLink Inc, 5.20% for Clearway Energy Inc, and 0.70% for AAON, Inc.. Looking at the universe of stocks we cover at Dividend Channel, on 5/31/19, CenturyLink Inc (Symbol: CTL), Clearway Energy Inc (Symbol: CWEN), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. CenturyLink Inc will pay its quarterly dividend of $0.25 on 6/14/19, Clearway Energy Inc will pay its quarterly dividend of $0.20 on 6/17/19, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/1/19.
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10463.0
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2019-05-20 00:00:00 UTC
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The Best Value Stock in a Hot Sector
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AAON
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https://www.nasdaq.com/articles/best-value-stock-hot-sector-2019-05-20
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nan
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nan
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It's been a great 2019 so far for stocks in the heating, ventilation, and air-conditioning (HVAC) sector. Despite a recent dip, stocks like AAON (NASDAQ: AAON), Johnson Controls (NYSE: JCI) and probably the pick of the bunch, Ingersoll-Rand (NYSE: IR), are up by nearly a third, while Lennox International (NYSE: LII) and Carrier owner United Technologies (NYSE: UTX) are also up 20% plus. Despite its strong stock price rise and a superficially weakening order book, Ingersoll-Rand still looks like the best way to get exposure to HVAC for investors. Here's why.
An industry set for consolidation
When you are looking across the HVAC sector, one thing becomes apparent: The industry is ripe for consolidation. Johnson Controls has recently sold its power solutions business for net cash proceeds of $11.6 billion, partly in order to make strategic initiatives in HVAC. Meanwhile, Carrier will be spun off of United Technologies, giving its management freedom to possibly pursue mergers and acquisitions.
Image source: Getty Images.
Furthermore, Ingersoll-Rand's announcement that it will spin off its industrial businesses and then combine them with Gardner Denver (NYSE: GDI) is going to create a highly focused HVAC company likely to be looking at acquisitions in the sector. The subject comes up on almost every presentation, as it did in Ingersoll-Rand'searnings call with CEO Mike Lamach affirming his view that it could happen over time.
In this context, it's easier to understand the kind of valuation at which smaller companies like Lennox International and AAON trade.
In the table below, EV is enterprise value (market cap plus net debt) and EBITDA is earnings before interest, taxes, depreciation and amortization -- a useful way to compare companies with different debt loads.
IR EV to EBITDA (TTM) data by YCharts. TTM = trailing 12 months.
Lennox's heavy exposure to North American residential HVAC helped make it one of the five top-performing stocks in the last year and makes it attractive for any company looking to buy market share in the U.S. But it's fair to say a lot of optimism is built into its price.
Meanwhile, AAON's high margin and position as a premium provider of commercial HVAC solutions make it suitable as a bolt-on acquisition for a larger company. But again, its valuation looks to be supported by speculation.
Johnson Controls and United Technologies
It's far from clear what Johnson Controls will do next, particularly as the cash proceeds from the sale of its power solutions have been earmarked for debt repayment and share buybacks. United Technologies is an attractive stock in its own right, but its prospects also depend on conditions in aerospace and Otis Elevators' prospects in China. In addition, Carrier's margin performance continues to disappoint, particularly when compared with Ingersoll-Rand's Trane.
Why Ingersoll-Rand remains the best stock in the sector
All of which leaves Mike Lamach's company as the best way to get exposure to the investing theme. There are three key reasons.
First, recent results saw the company raising full-year earnings expectations from a range of $6.15 to $6.35 per share to "approximately $6.35." That puts it on a forward P/E of 19.1. And given that full-year guidance for free cash flow (FCF) remains at $1.6 billion, the stock trades on an attractive forward market cap to FCF multiple of 18.3.
Second, as you can see below, Ingersoll-Rand's climate segment (which tends to generate around 80% of total company profit) and total company organic growth has been 6% or above for the last six quarters. Combined with strong bookings growth in 2018, it's possible that management's guidance for organic revenue growth of 5% to 6% will prove too conservative.
Data source: Ingersoll-Rand presentations.
Third, the company's underlying growth prospects remain strong. Climate bookings declined 3% in the first quarter, but management took the time to explain that it was largely due to coming up against extraordinary bookings growth in its transport refrigeration business in 2018.
According to CFO Susan Carter on theearnings call "we booked 1.5 years of trailer unit orders and two years of auxiliary power unit orders resulting in record transport backlog at the end of the year. With the record backlog, and an underlying healthy market of revenue, outlook for transport is healthy into 2020."
The volatility in transport orders, Carter said, masks the fact that "HVAC organic bookings were strong with mid-single to high-single-digit growth rates for commercial HVAC North America and Europe and for residential HVAC" in the first quarter.
A stock to buy
Despite being part of a sector buoyed by acquisition speculation, Ingersoll-Rand still looks like a good value, and management's recent steps will create an even more HVAC-focused company. All told, it looks like there's still room to run with its stock price.
10 stocks we like better than Ingersoll-Rand
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*Stock Advisor returns as of March 1, 2019
Lee Samaha owns shares of Ingersoll-Rand. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite a recent dip, stocks like AAON (NASDAQ: AAON), Johnson Controls (NYSE: JCI) and probably the pick of the bunch, Ingersoll-Rand (NYSE: IR), are up by nearly a third, while Lennox International (NYSE: LII) and Carrier owner United Technologies (NYSE: UTX) are also up 20% plus. In this context, it's easier to understand the kind of valuation at which smaller companies like Lennox International and AAON trade. Meanwhile, AAON's high margin and position as a premium provider of commercial HVAC solutions make it suitable as a bolt-on acquisition for a larger company.
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Despite a recent dip, stocks like AAON (NASDAQ: AAON), Johnson Controls (NYSE: JCI) and probably the pick of the bunch, Ingersoll-Rand (NYSE: IR), are up by nearly a third, while Lennox International (NYSE: LII) and Carrier owner United Technologies (NYSE: UTX) are also up 20% plus. In this context, it's easier to understand the kind of valuation at which smaller companies like Lennox International and AAON trade. Meanwhile, AAON's high margin and position as a premium provider of commercial HVAC solutions make it suitable as a bolt-on acquisition for a larger company.
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Despite a recent dip, stocks like AAON (NASDAQ: AAON), Johnson Controls (NYSE: JCI) and probably the pick of the bunch, Ingersoll-Rand (NYSE: IR), are up by nearly a third, while Lennox International (NYSE: LII) and Carrier owner United Technologies (NYSE: UTX) are also up 20% plus. In this context, it's easier to understand the kind of valuation at which smaller companies like Lennox International and AAON trade. Meanwhile, AAON's high margin and position as a premium provider of commercial HVAC solutions make it suitable as a bolt-on acquisition for a larger company.
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Despite a recent dip, stocks like AAON (NASDAQ: AAON), Johnson Controls (NYSE: JCI) and probably the pick of the bunch, Ingersoll-Rand (NYSE: IR), are up by nearly a third, while Lennox International (NYSE: LII) and Carrier owner United Technologies (NYSE: UTX) are also up 20% plus. In this context, it's easier to understand the kind of valuation at which smaller companies like Lennox International and AAON trade. Meanwhile, AAON's high margin and position as a premium provider of commercial HVAC solutions make it suitable as a bolt-on acquisition for a larger company.
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10464.0
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2019-04-19 00:00:00 UTC
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3 Things to Look Out for When United Technologies Reports Earnings
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AAON
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https://www.nasdaq.com/articles/3-things-look-out-when-united-technologies-reports-earnings-2019-04-19
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nan
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nan
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The investment case for buying United Technologies (NYSE: UTX) stock has long been that the sum of the parts of its businesses was at a significant discount to what they traded at under the umbrella of the parent company. Moreover, the idea of giving investors differentiated investments (in terms of end markets and investment profile) is seen as beneficial to investors and management alike -- it's a key reason so many industrial conglomerates are breaking up. That said, United Technologies' different businesses still need to perform in order to release value, so let's take a look at what to expect in the upcoming results.
Pratt & Whitney and Collins Aerospace
It's long been known that the aerospace businesses -- to be combined in the event of the separation -- are the strength of the company, and investors will be expecting another solid performance in the first quarter. The International Air Transport Association expects worldwide airline profit to improve by nearly 10% to $35.5 billion in 2019 with passenger departures expected to increase by 6.1%.
United Technologies needs a good performance from Otis in China. Image source: United Technologies.
That's a very good backdrop for Pratt & Whitney and Collins Aerospace aftermarket sales. Management's guidance for commercial aftermarket organic sales growth in 2019 stands at mid-single digits for Pratt & Whitney and low to mid-single digits for Collins Aerospace.
Meanwhile, Collins Aerospace is expected to increase commercial original equipment (OE) sales by mid-single digits, with Pratt & Whitney expected to increase commercial OE sales in the high single digits thanks to its geared turbofan engine (GTF) on the Airbus A320neo.
Investors will get a sneak preview of what to expect from the aerospace aftermarket when Honeywell International gives earnings in the week preceding United Technologies results. OE sales can be lumpy, but the key thing to follow here will be management's commentary on GTF production and unit cost of production cuts on the GTF -- something that could help the company overcome the negative engine margin implied in a ramp in production.
Carrier
Putting aerospace to one side, the key swing factors in the company's performance in 2019 are likely to be its commercial businesses Otis (elevators) and Carrier (heating, ventilation and air conditioning, or HVAC, fire & security products and refrigeration). There are two things to look out for.
First, as you can see below, Carrier's margin performance has been disappointing for some time. Management puts it down to product mix, geographic mix, new product sales margin, and, of course, the rising input costs that hurt many industrial companies in 2018.
However, CFO Akhil Johri argued that "volume-related drop-through, pricing and productivity should more than offset input cost headwinds in 2019," so investors will be hoping for some margin improvement from Carrier in 2019.
Data source: Company presentations. Chart by author.
Second, there's plenty of market speculation around the idea that the HVAC industry is set for significant consolidation, and, as a leading player set to be spun off, Carrier is obviously part of that discussion.
While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too.
AAON EV to EBITDA (TTM) data by YCharts
Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think.
Otis
In common with Carrier, Otis felt the pinch from rising input costs last year. In addition, the company's exposure to China -- the largest market for new elevator equipment in the world -- is front and center of investors' concerns. In recent years, management has been willing to forego pricing in favor of winning back market share it lost due to previous rigidity on pricing.
Data source: Company presentations. Chart by author.
However, as Johri pointed out on the lastearnings call "China new equipment is projected to be up high single digit as the higher 2018 year-end backlog converts to sales. We also expect a stable new equipment market in China in 2019 and a faster conversion of new orders into sales." VP of Investor Relations Carroll Lane said, "Operating profit at Otis was up 7% at constant currency, marking the first quarter of earnings growth since Q3 2015."
Overall, Johri expects "flattish" margin performance for Otis in 2019 and before currency effects adjusted operating profit at Otis is expected to increase by $25 million to $75 million.
Given the deterioration in the growth outlook in the China economy in 2019, it will be interesting to see if all these expectations are maintained.
United Technologies first-quarter earnings
All told, it's reasonable to expect ongoing strength from the aerospace businesses, and Carrier could see some relative margin improvement. Otis's prospects look less certain, even though the last quarter saw tangible improvement.
If the company really is going to release value in its overall portfolio, it will need to demonstrate that all three business areas are making progress in 2019.
10 stocks we like better than United Technologies
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 1, 2019
Lee Samaha owns shares of Honeywell International. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. The investment case for buying United Technologies (NYSE: UTX) stock has long been that the sum of the parts of its businesses was at a significant discount to what they traded at under the umbrella of the parent company.
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While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. Management's guidance for commercial aftermarket organic sales growth in 2019 stands at mid-single digits for Pratt & Whitney and low to mid-single digits for Collins Aerospace.
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While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. Meanwhile, Collins Aerospace is expected to increase commercial original equipment (OE) sales by mid-single digits, with Pratt & Whitney expected to increase commercial OE sales in the high single digits thanks to its geared turbofan engine (GTF) on the Airbus A320neo.
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While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. That said, United Technologies' different businesses still need to perform in order to release value, so let's take a look at what to expect in the upcoming results.
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10465.0
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2019-04-19 00:00:00 UTC
|
3 Things to Look Out for When United Technologies Reports Earnings
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AAON
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https://www.nasdaq.com/articles/3-things-look-out-when-united-technologies-reports-earnings-2019-04-19-0
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nan
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nan
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The investment case for buying United Technologies (NYSE: UTX) stock has long been that the sum of the parts of its businesses was at a significant discount to what they traded at under the umbrella of the parent company. Moreover, the idea of giving investors differentiated investments (in terms of end markets and investment profile) is seen as beneficial to investors and management alike -- it's a key reason so many industrial conglomerates are breaking up . That said, United Technologies' different businesses still need to perform in order to release value, so let's take a look at what to expect in the upcoming results.
Pratt & Whitney and Collins Aerospace
It's long been known that the aerospace businesses -- to be combined in the event of the separation -- are the strength of the company, and investors will be expecting another solid performance in the first quarter. The International Air Transport Association expects worldwide airline profit to improve by nearly 10% to $35.5 billion in 2019 with passenger departures expected to increase by 6.1%.
That's a very good backdrop for Pratt & Whitney and Collins Aerospace aftermarket sales. Management's guidance for commercial aftermarket organic sales growth in 2019 stands at mid-single digits for Pratt & Whitney and low to mid-single digits for Collins Aerospace.
Meanwhile, Collins Aerospace is expected to increase commercial original equipment (OE) sales by mid-single digits, with Pratt & Whitney expected to increase commercial OE sales in the high single digits thanks to its geared turbofan engine (GTF) on the Airbus A320neo.
Investors will get a sneak preview of what to expect from the aerospace aftermarket when Honeywell International gives earnings in the week preceding United Technologies results. OE sales can be lumpy, but the key thing to follow here will be management's commentary on GTF production and unit cost of production cuts on the GTF -- something that could help the company overcome the negative engine margin implied in a ramp in production.
Carrier
Putting aerospace to one side, the key swing factors in the company's performance in 2019 are likely to be its commercial businesses Otis (elevators) and Carrier (heating, ventilation and air conditioning, or HVAC, fire & security products and refrigeration). There are two things to look out for.
First, as you can see below, Carrier's margin performance has been disappointing for some time. Management puts it down to product mix, geographic mix, new product sales margin, and, of course, the rising input costs that hurt many industrial companies in 2018.
However, CFO Akhil Johri argued that "volume-related drop-through, pricing and productivity should more than offset input cost headwinds in 2019," so investors will be hoping for some margin improvement from Carrier in 2019.
Second, there's plenty of market speculation around the idea that the HVAC industry is set for significant consolidation, and, as a leading player set to be spun off, Carrier is obviously part of that discussion.
While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too.
AAON EV to EBITDA (TTM) data by YCharts
Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think.
Otis
In common with Carrier, Otis felt the pinch from rising input costs last year. In addition, the company's exposure to China -- the largest market for new elevator equipment in the world -- is front and center of investors' concerns. In recent years, management has been willing to forego pricing in favor of winning back market share it lost due to previous rigidity on pricing.
However, as Johri pointed out on the last earnings call , "China new equipment is projected to be up high single digit as the higher 2018 year-end backlog converts to sales. We also expect a stable new equipment market in China in 2019 and a faster conversion of new orders into sales." VP of Investor Relations Carroll Lane said, "Operating profit at Otis was up 7% at constant currency, marking the first quarter o f earnings growth since Q3 2015."
Overall, Johri expects "flattish" margin performance for Otis in 2019 and before currency effects adjusted operating profit at Otis is expected to increase by $25 million to $75 million.
Given the deterioration in the growth outlook in the China economy in 2019, it will be interesting to see if all these expectations are maintained.
United Technologies first-quarter earnings
All told, it's reasonable to expect ongoing strength from the aerospace businesses, and Carrier could see some relative margin improvement. Otis's prospects look less certain, even though the last quarter saw tangible improvement.
If the company really is going to release value in its overall portfolio, it will need to demonstrate that all three business areas are making progress in 2019.
10 stocks we like better than United Technologies
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 1, 2019
Lee Samaha owns shares of Honeywell International. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. The investment case for buying United Technologies (NYSE: UTX) stock has long been that the sum of the parts of its businesses was at a significant discount to what they traded at under the umbrella of the parent company.
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While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. Management's guidance for commercial aftermarket organic sales growth in 2019 stands at mid-single digits for Pratt & Whitney and low to mid-single digits for Collins Aerospace.
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While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. Meanwhile, Collins Aerospace is expected to increase commercial original equipment (OE) sales by mid-single digits, with Pratt & Whitney expected to increase commercial OE sales in the high single digits thanks to its geared turbofan engine (GTF) on the Airbus A320neo.
|
While antitrust issues probably make a deal with Ingersoll-Rand's Trane a nonstarter, a deal with Johnson Controls is not out of the question, and the elevated valuation's of Lennox International -- one of the best-performing industrial stocks in the last year -- and commercial HVAC company AAON suggest that someone else thinks they are in play too. AAON EV to EBITDA (TTM) data by YCharts Look out for any management commentary with regard to Carrier's future, because investors might find the value released from United Technologies portfolio sooner than they think. That said, United Technologies' different businesses still need to perform in order to release value, so let's take a look at what to expect in the upcoming results.
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10466.0
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2019-04-07 00:00:00 UTC
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Why AAON Stock Soared Nearly 16% in March
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AAON
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https://www.nasdaq.com/articles/why-aaon-stock-soared-nearly-16-march-2019-04-07
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nan
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nan
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What happened
Shares of heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 15.9% in March, according to data from S&P Global Market Intelligence. The move continues a strong run for the stock, which is now up more than 30% on a year-to-date basis.
A quick look at the price chart reveals a steady uptrend in March, and the earnings report at the start of the month helped. However, it's hard not to think AAON's stock price is being supported by a fair amount of takeover speculation. After all, it trades at a forward P/E of more than 36.
The heating, ventilation and air conditioning market is hotting up. Image source: Getty Images.
AAON is a small company competing in the commercial HVAC market with some much larger competitors, including Lennox International, Johnson Controls, Ingersoll-Rand, and United Technologies' (NYSE: UTX) Carrier. There are three key reasons the company could be taken over.
First, AAON's market cap of $2.4 billion is unlikely to deter its larger peers. Second, its position as a premium provider of commercial HVAC makes it attractive as a bolt-on acquisition for a larger company because it brings good exposure to the replacement market -- a good place to be if the economy starts to slow. Moreover, there's likely to be less cannibalization of sales of an acquirer, because AAON trades at the premium end of the market.
The third point, and arguably the most important, is that the industry is ripe for consolidation.
So what
The takeover talk isn't just hot air. For example, Johnson Controls is selling its power solutions business partly to "capture strategic opportunities in the HVAC industry," according to CEO George Oliver in a press release. Meanwhile, Carrier will be spun off from United Technologies, and its management will now have more latitude to make portfolio changes in the future.
In addition, when Ingersoll-Rand CEO Mike Lamach was asked about industry consolidation during a conference at the start of March, he said he believed it could come over time but would probably be focused on small HVAC companies.
Now what
Putting potential bid talk aside, AAON is planning on a return to what management calls "normal levels" of gross profit margin in 2019, following a year when it declined to 23.9% from 30.5% in 2017 -- something CEO Norman Asbjornson put down to "labor issues and increased costs in raw materials." In addition, he said, the fourth quarter was affected by "production inefficiencies."
Asbjornson believes a combination of price increases and management initiatives will address these issues, but it's still in the early days. No matter, though: The market is giving AAON the benefit of the doubt, and given the potential or consolidation in the industry, the company is a viable candidate for a takeover.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON is a small company competing in the commercial HVAC market with some much larger competitors, including Lennox International, Johnson Controls, Ingersoll-Rand, and United Technologies' (NYSE: UTX) Carrier. What happened Shares of heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 15.9% in March, according to data from S&P Global Market Intelligence. However, it's hard not to think AAON's stock price is being supported by a fair amount of takeover speculation.
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What happened Shares of heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 15.9% in March, according to data from S&P Global Market Intelligence. However, it's hard not to think AAON's stock price is being supported by a fair amount of takeover speculation. AAON is a small company competing in the commercial HVAC market with some much larger competitors, including Lennox International, Johnson Controls, Ingersoll-Rand, and United Technologies' (NYSE: UTX) Carrier.
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What happened Shares of heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 15.9% in March, according to data from S&P Global Market Intelligence. AAON is a small company competing in the commercial HVAC market with some much larger competitors, including Lennox International, Johnson Controls, Ingersoll-Rand, and United Technologies' (NYSE: UTX) Carrier. No matter, though: The market is giving AAON the benefit of the doubt, and given the potential or consolidation in the industry, the company is a viable candidate for a takeover.
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AAON is a small company competing in the commercial HVAC market with some much larger competitors, including Lennox International, Johnson Controls, Ingersoll-Rand, and United Technologies' (NYSE: UTX) Carrier. What happened Shares of heating, ventilation, and air conditioning (HVAC) company AAON (NASDAQ: AAON) rose 15.9% in March, according to data from S&P Global Market Intelligence. However, it's hard not to think AAON's stock price is being supported by a fair amount of takeover speculation.
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10467.0
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2019-03-28 00:00:00 UTC
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Top-Ranked Stocks to Fill in the Sweet 16 Bracket
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AAON
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https://www.nasdaq.com/articles/top-ranked-stocks-fill-sweet-16-bracket-2019-03-28-0
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The frenzy surrounding the National Collegiate Athletic Association (NCAA) Men's Division I Basketball Tournament is not limited to the game enthusiasts but spreads to the investment world as well. It fuels growth in various corners. Millions of Americans look to capitalize on this opportunity by enthusiastically filling in the brackets that could lead to handsome returns from the stocks that are wagered on.
Popularly hailed as "March Madness," the NCAA is underway with the champion slated to be crowned on Apr 8 at U.S. Bank Stadium in Minneapolis, MN. Since the basketball tournament has advanced to the Sweet Sixteen level (to be played on Mar 28), let's fill in 16 stock brackets first and then compare those like we do for March Madness to get to the real winner.
How to Pick the Sweet 16 Stocks
Akin to the basketball championship, we have chosen four sectors - business services, computer and technology, oils & energy and construction - out of 16 Zacks sectors that have been outperforming this year. We have picked the four best industries (within the top 45%) from each sector with the help of the Zacks Industry Rank .
Then, we have picked one stock having a Zacks Rank #1 (Strong Buy) or 2 (Buy) from each industry with the highest market capitalization in order to get the Sweet Sixteen stocks. Top-ranked stocks indicate rising earnings estimates. Stocks with strong earnings momentum are more likely to outpace the market. This was a cakewalk all thanks to the Zacks Stock screener .
You can see the complete list of today's Zacks #1 Rank stocks here .
Once the stocks were zeroed in on, their one-year performance was considered for the qualifiers to the Elite Eight. Notably, the stocks with the highest industry ranks will matchup with the stocks having low industry ranks.
Business Services
The four top industries and their best stocks in the business services sector are as follows:
1. Government Services: Rank in the top 3%; Stock - Booz Allen Hamilton Holding Corporation BAH
2. Business - Office Products: Rank in the top 5%; Stock - Herman Miller Inc. MLHR
3. Auction and Valuation Services: Rank in the top 17%; Stock - Copart Inc. CPRT
4. Staffing: Rank in the top 23%; Stock - Robert Half International Inc. RHI
BAH vs. RHI: Here, BAH wins over RHI as it has returned nearly 53% in a year compared with a gain of 13% for the latter.
MLHR vs. CPRT: Copart beats Herman Miller in the same period by thin margin, gaining 17.2% compared with 17.1% for MLHR.
Computer and Technology
The four top industries and their best stocks in the computer and technology sector are as follows:
1. Instruments - Scientific: Rank in the top 2%; Stock - MTS Systems Corporation MTSC
2. Fiber Optics: Rank in the top 5%; Stock - Ciena Corporation CIEN
3. Industrial Automation And Robotics: Rank in the top 5%; Stock - iRobot Corporation IRBT
4. Electronics - Connectors: Rank in the top 5%; Stock - Methode Electronics, Inc. MEI
MTSC vs. MEI: Here, MTS Systems has outpaced Methode Electronics as it gained about 7% in a year against a decline of 27% for MEI.
CIEN vs. IRBT: iRobot Corporation is clearly the winner as it has returned more than 76% in a year compared with a gain of about 44% for Ciena.
Oil & Energy
The four top industries and their best stocks in the oil & energy sector are as follows:
1. Solar: Rank in the top 7%; Stock - JinkoSolar Holding Company Limited JKS
2. Oil and Gas - Refining and Marketing - Master Limited Partnerships: Rank in the top 14%; Stock - NGL Energy Partners LP NGL
3. Coal: Rank in the top 16%; Stock - Consol Energy Inc. CEIX
4. Oil And Gas - Integrated - Emerging Markets: Rank in the top 17%; Stock - CNOOC Limited CEO
JKS vs. CEO: CNOOC Limited has outpaced JinkoSolar with a gain of 28% against loss of 7% for the latter.
NGL vs. CEIX: NGL has gained 52%, much higher than 21.2% returned by Consol Energy in the same period.
Construction
The four top industries and their best stocks in the construction sector are as follows:
1. Building Products - Air Conditioner and Heating: Rank in the top 5%; Stock - AAON, Inc. AAON
2. Building Products - Lighting: Rank in the top 17%; Stock - Orion Energy Systems, Inc. OESX
3. Building Products - Concrete and Aggregates: Rank in the top 32%; Stock - Summit Materials Inc. SUM
4. Building Products - Heavy Construction: Rank in the top 40%; Stock - Great Lakes Dredge & Dock Corporation GLDD
AAON vs. GLDD: GLDD wins over AAON by a wide margin as it gained 111% in the past year compared with 19% rise of the latter.
OESX vs. SUM: Orion Energy easily defeated Summit Materials by climbing 9% against 50% decline for the latter.
The winners of each industry group will compete against each other in the Elite Eight.
Elite Eight (Mar 30)
Among the eight winning stocks, the highest average positive earnings surprise over the past four quarters was used to decide the winners of each sector that should advance to the Final Four.
BAH vs. CPRT: Booz Allen Hamilton has delivered average positive earnings surprise of 19.29% compared with 0.46% for Copart. Hence, BAH wins over CPRT.
MTSC vs. IRBT: Here, IRBT is the winner with average positive earnings surprise of 92.23% against negative surprise of 6.57% for MTS System.
CEO vs. NGL: Though both the stocks have delivered negative avera ge earnings surprise over the past four quarters, CNOOC Limited wins over NGL Energy Partners.
GLDD vs. OESX: Great Lakes Dredge & Dock wins with an average positive earnings surprise of 474.12% over the past four quarters compared with 13.49% for Orion Energy Systems.
Final Four (Apr 6)
We now have the best stocks in the four sectors. To advance to the next level, we have considered the year-over-year earnings growth for the current fiscal year. Let us once again dig into the Zacks Industry Rank of the four stocks to decide the contenders.
Booz Allen Hamilton Holding Corporation (BAH) - Zacks Industry Rank in the top 3%
iRobot Corporation (IRBT) - Zacks Industry Rank in the top 5%
CNOOC Limited (CEO) - Zacks Industry Rank in the top 17%
Great Lakes Dredge & Dock Corporation (GLDD) - Zacks Industry Rank in the top 40%
So, in the matchups, we have Booz Allen Hamilton and Great Lakes on one side, and iRobot Corporation and CNOOC Limited on the other.
Booz Allen Hamilton Holding Corporation vs. Great Lakes Dredge & Dock Corporation: Booz Allen Hamilton earnings are expected to grow 35.32% this fiscal year while GLDD's will likely rise 170.59%. With a higher projected earnings growth rate, GLDD wins and advances to the final round to take on the winner of IRBT vs. CEO.
iRobot Corporation vs. CNOOC Limited: Here, earnings at iRobot are expected to decline 42.4% for this year while CEO earnings will see growth of 4.57%. As a result, CEO wins and will matchup with Great Lakes Dredge & Dock for the championship.
The Championship (Apr 8)
Let's look at our VGM Score (V stands for Value, G for Growth and M for Momentum), which is simply a weighted combination of the three. The VGM score when combined with a Zacks Rank #1 or 2 offer the best upside potential with a frenzy of cheap price, robust growth and strong momentum.
CNOOC Limited finally wins over Great Lakes Dredge & Dock with a VGM Score of B against C for the latter.
Result
Based on our internal research and metrics, CNOOC Limited, having a Zacks Rank #2 and a VGM Score of B, has emerged as the winner of the 2019 March Madness contest among stocks and could be a top bet for this year. While it was exciting and fun to dribble toward the winning stock, we expect the twists and turns in the NCAA tournament to lead to some dramatic moves in the investment world.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. This outperformance has not just been a recent phenomenon. From 2000 - 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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NGL Energy Partners LP (NGL): Free Stock Analysis Report
CNOOC Limited (CEO): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
Orion Energy Systems, Inc. (OESX): Free Stock Analysis Report
Summit Materials, Inc. (SUM): Free Stock Analysis Report
Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report
Methode Electronics, Inc. (MEI): Free Stock Analysis Report
Ciena Corporation (CIEN): Free Stock Analysis Report
iRobot Corporation (IRBT): Free Stock Analysis Report
MTS Systems Corporation (MTSC): Free Stock Analysis Report
JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report
Robert Half International Inc. (RHI): Free Stock Analysis Report
Copart, Inc. (CPRT): Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report
Macy's, Inc. (M): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Building Products - Air Conditioner and Heating: Rank in the top 5%; Stock - AAON, Inc. AAON 2. Building Products - Heavy Construction: Rank in the top 40%; Stock - Great Lakes Dredge & Dock Corporation GLDD AAON vs. GLDD: GLDD wins over AAON by a wide margin as it gained 111% in the past year compared with 19% rise of the latter. Click to get this free report NGL Energy Partners LP (NGL): Free Stock Analysis Report CNOOC Limited (CEO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Orion Energy Systems, Inc. (OESX): Free Stock Analysis Report Summit Materials, Inc. (SUM): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report Methode Electronics, Inc. (MEI): Free Stock Analysis Report Ciena Corporation (CIEN): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report MTS Systems Corporation (MTSC): Free Stock Analysis Report JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report To read this article on Zacks.com click here.
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Building Products - Heavy Construction: Rank in the top 40%; Stock - Great Lakes Dredge & Dock Corporation GLDD AAON vs. GLDD: GLDD wins over AAON by a wide margin as it gained 111% in the past year compared with 19% rise of the latter. Click to get this free report NGL Energy Partners LP (NGL): Free Stock Analysis Report CNOOC Limited (CEO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Orion Energy Systems, Inc. (OESX): Free Stock Analysis Report Summit Materials, Inc. (SUM): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report Methode Electronics, Inc. (MEI): Free Stock Analysis Report Ciena Corporation (CIEN): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report MTS Systems Corporation (MTSC): Free Stock Analysis Report JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report To read this article on Zacks.com click here. Building Products - Air Conditioner and Heating: Rank in the top 5%; Stock - AAON, Inc. AAON 2.
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Click to get this free report NGL Energy Partners LP (NGL): Free Stock Analysis Report CNOOC Limited (CEO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Orion Energy Systems, Inc. (OESX): Free Stock Analysis Report Summit Materials, Inc. (SUM): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report Methode Electronics, Inc. (MEI): Free Stock Analysis Report Ciena Corporation (CIEN): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report MTS Systems Corporation (MTSC): Free Stock Analysis Report JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report To read this article on Zacks.com click here. Building Products - Air Conditioner and Heating: Rank in the top 5%; Stock - AAON, Inc. AAON 2. Building Products - Heavy Construction: Rank in the top 40%; Stock - Great Lakes Dredge & Dock Corporation GLDD AAON vs. GLDD: GLDD wins over AAON by a wide margin as it gained 111% in the past year compared with 19% rise of the latter.
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Building Products - Air Conditioner and Heating: Rank in the top 5%; Stock - AAON, Inc. AAON 2. Building Products - Heavy Construction: Rank in the top 40%; Stock - Great Lakes Dredge & Dock Corporation GLDD AAON vs. GLDD: GLDD wins over AAON by a wide margin as it gained 111% in the past year compared with 19% rise of the latter. Click to get this free report NGL Energy Partners LP (NGL): Free Stock Analysis Report CNOOC Limited (CEO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Orion Energy Systems, Inc. (OESX): Free Stock Analysis Report Summit Materials, Inc. (SUM): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report Methode Electronics, Inc. (MEI): Free Stock Analysis Report Ciena Corporation (CIEN): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report MTS Systems Corporation (MTSC): Free Stock Analysis Report JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report Robert Half International Inc. (RHI): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report To read this article on Zacks.com click here.
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10468.0
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2019-03-22 00:00:00 UTC
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Why AAON, Inc. (AAON) Stock Might be a Great Pick
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AAON
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https://www.nasdaq.com/articles/why-aaon-inc.-aaon-stock-might-be-a-great-pick-2019-03-22
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One stock that might be an intriguing choice for investors right now is AAON, Inc.AAON . This is because this security in the Building Products - Air Conditioner and Heating space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Building Products - Air Conditioner and Heating space as it currently has a Zacks Industry Rank of 16 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, AAONis actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
AAON, Inc. Price and Consensus
AAON, Inc. Price and Consensus | AAON, Inc. Quote
In fact, over the past month, current quarter estimates have risen from 8 cents per share to 24 cents per share, while current year estimates have risen from $1.28 per share to $1.31 per share. This has helped AAON to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
So, if you are looking for a decent pick in a strong industry, consider AAON. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
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Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98% , +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This has helped AAON to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position. One stock that might be an intriguing choice for investors right now is AAON, Inc.AAON . Meanwhile, AAONis actually looking pretty good on its own too.
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AAON, Inc. Price and Consensus AAON, Inc. Price and Consensus | AAON, Inc. Quote In fact, over the past month, current quarter estimates have risen from 8 cents per share to 24 cents per share, while current year estimates have risen from $1.28 per share to $1.31 per share. One stock that might be an intriguing choice for investors right now is AAON, Inc.AAON . Meanwhile, AAONis actually looking pretty good on its own too.
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AAON, Inc. Price and Consensus AAON, Inc. Price and Consensus | AAON, Inc. Quote In fact, over the past month, current quarter estimates have risen from 8 cents per share to 24 cents per share, while current year estimates have risen from $1.28 per share to $1.31 per share. One stock that might be an intriguing choice for investors right now is AAON, Inc.AAON . Meanwhile, AAONis actually looking pretty good on its own too.
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One stock that might be an intriguing choice for investors right now is AAON, Inc.AAON . Meanwhile, AAONis actually looking pretty good on its own too. AAON, Inc. Price and Consensus AAON, Inc. Price and Consensus | AAON, Inc. Quote In fact, over the past month, current quarter estimates have risen from 8 cents per share to 24 cents per share, while current year estimates have risen from $1.28 per share to $1.31 per share.
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10469.0
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2019-03-14 00:00:00 UTC
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Top Ranked Momentum Stocks to Buy for March 14th
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AAON
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https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-march-14th-2019-03-14
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Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 14th:
Digital Turbine, Inc. (APPS): This provider of media and mobile communication services has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 75% over the last 60 days.
Digital Turbine, Inc. Price and Consensus
Digital Turbine, Inc. price-consensus-chart | Digital Turbine, Inc. Quote
Digital Turbine's shares gained 4% over the last one month more than S&P 500's gain of 2.4%. The company possesses a Momentum Score of B.
Digital Turbine, Inc. Price
Digital Turbine, Inc. price | Digital Turbine, Inc. Quote
Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
Arcosa, Inc. Price and Consensus
Arcosa, Inc. price-consensus-chart | Arcosa, Inc. Quote
Arcosa's shares gained 8.4% over the last one month. The company possesses a Momentum Score of B.
Arcosa, Inc. Price
Arcosa, Inc. price | Arcosa, Inc. Quote
AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days.
AAON, Inc. Price and Consensus
AAON, Inc. price-consensus-chart | AAON, Inc. Quote
AAON's shares gained 9% over the last one month. The company possesses a Momentum Score of A.
AAON, Inc. Price
AAON, Inc. price | AAON, Inc. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here .
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 - 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Digital Turbine, Inc. (APPS): Free Stock Analysis Report
Arcosa, Inc. (ACA): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company possesses a Momentum Score of B. Arcosa, Inc. Price Arcosa, Inc. price | Arcosa, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 9% over the last one month. The company possesses a Momentum Score of A. AAON, Inc. Price AAON, Inc. price | AAON, Inc. Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here .
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Click to get this free report Digital Turbine, Inc. (APPS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of B. Arcosa, Inc. Price Arcosa, Inc. price | Arcosa, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 9% over the last one month.
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The company possesses a Momentum Score of B. Arcosa, Inc. Price Arcosa, Inc. price | Arcosa, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. Click to get this free report Digital Turbine, Inc. (APPS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 9% over the last one month.
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The company possesses a Momentum Score of B. Arcosa, Inc. Price Arcosa, Inc. price | Arcosa, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 9% over the last one month. The company possesses a Momentum Score of A. AAON, Inc. Price AAON, Inc. price | AAON, Inc. Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here .
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2019-03-13 00:00:00 UTC
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Top Ranked Momentum Stocks to Buy for March 13th
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AAON
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https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-march-13th-2019-03-13
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Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 13th:
American Assets Trust, Inc. (AAT): This real estate investment trust has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.9% over the last 60 days.
American Assets Trust, Inc. Price and Consensus
American Assets Trust, Inc. price-consensus-chart | American Assets Trust, Inc. Quote
American Assets' shares gained 4.1% over the last one month more than S&P 500's gain of 1.4%. The company possesses a Momentum Score of B.
American Assets Trust, Inc. Price
American Assets Trust, Inc. price | American Assets Trust, Inc. Quote
Inter Parfums, Inc. (IPAR): This fragrances and fragrance related products manufacturer has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.
Inter Parfums, Inc. Price and Consensus
Inter Parfums, Inc. price-consensus-chart | Inter Parfums, Inc. Quote
Inter Parfums' shares gained 9.2% over the last one month. The company possesses a Momentum Score of A.
Inter Parfums, Inc. Price
Inter Parfums, Inc. price | Inter Parfums, Inc. Quote
AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days.
AAON, Inc. Price and Consensus
AAON, Inc. price-consensus-chart | AAON, Inc. Quote
AAON's shares gained 6.2% over the last one month. The company possesses a Momentum Score of A.
AAON, Inc. Price
AAON, Inc. price | AAON, Inc. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here .
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Inter Parfums, Inc. (IPAR): Free Stock Analysis Report
American Assets Trust, Inc. (AAT): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 6.2% over the last one month. The company possesses a Momentum Score of A. AAON, Inc. Price AAON, Inc. price | AAON, Inc. Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here .
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Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report American Assets Trust, Inc. (AAT): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 6.2% over the last one month.
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The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report American Assets Trust, Inc. (AAT): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 6.2% over the last one month.
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The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. AAON, Inc. Price and Consensus AAON, Inc. price-consensus-chart | AAON, Inc. Quote AAON's shares gained 6.2% over the last one month. The company possesses a Momentum Score of A. AAON, Inc. Price AAON, Inc. price | AAON, Inc. Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here .
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10471.0
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2019-02-15 00:00:00 UTC
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Solid Growth Prospects for Air Conditioner and Heating Industry
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AAON
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https://www.nasdaq.com/articles/solid-growth-prospects-for-air-conditioner-and-heating-industry-2019-02-15
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The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers and marketers of a broad range of products for the heating, ventilation, air conditioning and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives.
Air conditioning and heating equipment is sold to residential replacement, the commercial and industrial HVAC (Heating, Ventilation and Air Conditioning) and residential new construction markets.
Let's take a look at the industry's three major themes:
Though the residential construction market slowdown in the United States has made the operating backdrop a bit difficult for the industry players, the companies are registering higher demand courtesy of a rise in disposable and per capita income, lower unemployment rate and improving consumer confidence. Higher construction spending activity in non-residential, commercial and industrial sectors is a boon to the Air Conditioner & Heating industry, boosting companies' revenues and profits.
Along with accelerated construction spending in the United States, continued investments in technologies designed to revolutionize customer-experience seem to be vital growth catalysts to the industry. Digitization of the companies' marketplace via e-commerce and iOS/Android-enabled apps, supported by the industry's comprehensive database of product information, continues to see momentum. Importantly, new investments in the expansion of distribution footprint, research and development projects as well as marketing programs are contributing significantly to the companies' top lines. The companies are also actively pursuing accretive acquisitions in order to broaden their product portfolio and expand geographic footprint as well as market share. Meanwhile, services associated with maintaining, monitoring and repairing existing equipment are also providing the industry participants a stable source of revenues. Notably, the industry generates a major share of its revenues from these services, which consumers generally cannot suspend even when the construction markets fluctuate.
On the flip side, rising raw material costs due to tariffs and trade restrictions have been hurting profit margins to some extent. Also, rising freight expenses, stiff competition and the impact of seasonality on the industry's revenues could pose significant challenges in the forthcoming quarters. Again, the industry is susceptible to heavy governmental regulation related to energy efficiency and gas emission. HVAC systems use refrigerant for cooling that is harmful to humans and the environment.
Zacks Industry Rank Indicates Favorable Outlook
The Zacks Building Products - Air Conditioner & Heating industry is a five-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #25, which places it at the top 10% of more than 250 Zacks industries.
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates impressive near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry's position in the top 10% of the Zacks-ranked industries is a result of positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have faith in this group's earnings growth potential. The industry's earnings estimate for the current year has been increased by 1% since Nov 2018.
Before we present a few stocks that you may want to consider, let's take a look at the industry's recent stock-market performance and valuation picture.
Industry Outperforms S&P 500 and Sector
The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector as well as the Zacks S&P 500 composite over the past year.
The industry has gained 4.1% over this period compared with the S&P 500's increase of 0.9%. The broader sector has declined 16% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 21.5X versus the S&P 500's 16.7X and the sector's 13X.
Over the past five years, the industry has traded as high as 27.6X, as low as 13.5X and at the median of 22.7X, as the chart below shows.
Industry's P/E Ratio (Forward 12-Month) Versus S&P 500
Bottom Line
A major boost in infrastructural and construction spending should continue to favor the industry's performance. Additionally, maintaining, monitoring and repairing services along with prudent cost-management practices leveraging technology should provide support. The aforementioned growth factors seem to be offsetting headwinds arising from rising costs, heavy governmental regulation and competitive pressure.
Currently, there is only one stock that is cashing in on the positive economic fundamentals and is witnessing positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Comfort Systems USA, Inc. (FIX): Earnings estimates for this Houston, TX-based leading provider of mechanical services - including heating, ventilation, air conditioning, plumbing, piping and controls - have exhibited an uptrend over the past 60 days. The consensus EPS estimate for this Zacks Rank #1 stock has increased 3.3% for 2019, over the period.
Price and Consensus: FIX
Investors may hold on to the following stocks, which currently carry a Zacks Rank #3 (Hold) and have solid earnings growth prospects.
Tecogen Inc. (TGEN): Headquartered in Waltham, MA, this company designs, manufactures and sells industrial and commercial cogeneration systems that produce combinations of electricity, hot water and air conditioning. It has an expected earnings growth rate of 375% for 2019.
Price and Consensus: TGEN
AAON, Inc. (AAON): This Tulsa, OK-based manufacturer of air-conditioning and heating equipment has an expected earnings growth rate of 58% for 2019.
Price and Consensus: AAON
Lennox International Inc. (LII): This headquartered in Richardson, TX-based provider of climate control solutions on an international scale has expected earnings growth of 31% for 2019. The Zacks Consensus Estimate for 2019 has improved 1.7% over the last 60 days.
Price and Consensus: LII
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tecogen Inc. (TGEN): Free Stock Analysis Report
Lennox International, Inc. (LII): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Price and Consensus: TGEN AAON, Inc. (AAON): This Tulsa, OK-based manufacturer of air-conditioning and heating equipment has an expected earnings growth rate of 58% for 2019. Price and Consensus: AAON Lennox International Inc. (LII): This headquartered in Richardson, TX-based provider of climate control solutions on an international scale has expected earnings growth of 31% for 2019. Click to get this free report Tecogen Inc. (TGEN): Free Stock Analysis Report Lennox International, Inc. (LII): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Tecogen Inc. (TGEN): Free Stock Analysis Report Lennox International, Inc. (LII): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. Price and Consensus: TGEN AAON, Inc. (AAON): This Tulsa, OK-based manufacturer of air-conditioning and heating equipment has an expected earnings growth rate of 58% for 2019. Price and Consensus: AAON Lennox International Inc. (LII): This headquartered in Richardson, TX-based provider of climate control solutions on an international scale has expected earnings growth of 31% for 2019.
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Price and Consensus: TGEN AAON, Inc. (AAON): This Tulsa, OK-based manufacturer of air-conditioning and heating equipment has an expected earnings growth rate of 58% for 2019. Price and Consensus: AAON Lennox International Inc. (LII): This headquartered in Richardson, TX-based provider of climate control solutions on an international scale has expected earnings growth of 31% for 2019. Click to get this free report Tecogen Inc. (TGEN): Free Stock Analysis Report Lennox International, Inc. (LII): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here.
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Price and Consensus: TGEN AAON, Inc. (AAON): This Tulsa, OK-based manufacturer of air-conditioning and heating equipment has an expected earnings growth rate of 58% for 2019. Price and Consensus: AAON Lennox International Inc. (LII): This headquartered in Richardson, TX-based provider of climate control solutions on an international scale has expected earnings growth of 31% for 2019. Click to get this free report Tecogen Inc. (TGEN): Free Stock Analysis Report Lennox International, Inc. (LII): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here.
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10472.0
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2019-01-07 00:00:00 UTC
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AAON Shares Cross Above 200 DMA
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AAON
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https://www.nasdaq.com/articles/aaon-shares-cross-above-200-dma-2019-01-07
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nan
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In trading on Monday, shares of AAON, Inc. (Symbol: AAON) crossed above their 200 day moving average of $35.89, changing hands as high as $36.26 per share. AAON, Inc. shares are currently trading up about 1.4% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $36.10.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of AAON, Inc. (Symbol: AAON) crossed above their 200 day moving average of $35.89, changing hands as high as $36.26 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $36.10. AAON, Inc. shares are currently trading up about 1.4% on the day.
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In trading on Monday, shares of AAON, Inc. (Symbol: AAON) crossed above their 200 day moving average of $35.89, changing hands as high as $36.26 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $36.10. AAON, Inc. shares are currently trading up about 1.4% on the day.
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In trading on Monday, shares of AAON, Inc. (Symbol: AAON) crossed above their 200 day moving average of $35.89, changing hands as high as $36.26 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $36.10. AAON, Inc. shares are currently trading up about 1.4% on the day.
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AAON, Inc. shares are currently trading up about 1.4% on the day. In trading on Monday, shares of AAON, Inc. (Symbol: AAON) crossed above their 200 day moving average of $35.89, changing hands as high as $36.26 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $36.10.
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10473.0
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2018-12-06 00:00:00 UTC
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AAON Breaks Below 200-Day Moving Average - Notable for AAON
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AAON
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https://www.nasdaq.com/articles/aaon-breaks-below-200-day-moving-average-notable-aaon-2018-12-06
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nan
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $36.13, changing hands as low as $34.85 per share. AAON, Inc. shares are currently trading off about 2.1% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $35.40.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $36.13, changing hands as low as $34.85 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $35.40. AAON, Inc. shares are currently trading off about 2.1% on the day.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $36.13, changing hands as low as $34.85 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $35.40. AAON, Inc. shares are currently trading off about 2.1% on the day.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $36.13, changing hands as low as $34.85 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $35.40. AAON, Inc. shares are currently trading off about 2.1% on the day.
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AAON, Inc. shares are currently trading off about 2.1% on the day. In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $36.13, changing hands as low as $34.85 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $44.90 as the 52 week high point - that compares with a last trade of $35.40.
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10474.0
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2018-11-27 00:00:00 UTC
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AAON, Inc. (AAON) Ex-Dividend Date Scheduled for November 28, 2018
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-ex-dividend-date-scheduled-november-28-2018-2018-11-27
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nan
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nan
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AAON, Inc. ( AAON ) will begin trading ex-dividend on November 28, 2018. A cash dividend payment of $0.16 per share is scheduled to be paid on December 20, 2018. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 23.08% increase over prior dividend payment.
The previous trading day's last sale of AAON was $38.01, representing a -15.35% decrease from the 52 week high of $44.90 and a 30.84% increase over the 52 week low of $29.05.
AAON is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ). AAON's current earnings per share, an indicator of a company's profitability, is $.87. Zacks Investment Research reports AAON's forecasted earnings growth in 2018 as -14.74%, compared to an industry average of 22%.
For more information on the declaration, record and payment dates, visit the AAON Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ). Zacks Investment Research reports AAON's forecasted earnings growth in 2018 as -14.74%, compared to an industry average of 22%. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AAON, Inc. ( AAON ) will begin trading ex-dividend on November 28, 2018. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment.
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AAON, Inc. ( AAON ) will begin trading ex-dividend on November 28, 2018. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. AAON, Inc. ( AAON ) will begin trading ex-dividend on November 28, 2018. The previous trading day's last sale of AAON was $38.01, representing a -15.35% decrease from the 52 week high of $44.90 and a 30.84% increase over the 52 week low of $29.05.
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10475.0
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2018-11-26 00:00:00 UTC
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Ex-Dividend Reminder: Analog Devices, Maxim Integrated Products and AAON
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AAON
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https://www.nasdaq.com/articles/ex-dividend-reminder-analog-devices-maxim-integrated-products-and-aaon-2018-11-26
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 11/28/18, Analog Devices Inc (Symbol: ADI), Maxim Integrated Products, Inc. (Symbol: MXIM), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. Analog Devices Inc will pay its quarterly dividend of $0.48 on 12/10/18, Maxim Integrated Products, Inc. will pay its quarterly dividend of $0.46 on 12/13/18, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 12/20/18. As a percentage of ADI's recent stock price of $89.21, this dividend works out to approximately 0.54%, so look for shares of Analog Devices Inc to trade 0.54% lower - all else being equal - when ADI shares open for trading on 11/28/18. Similarly, investors should look for MXIM to open 0.87% lower in price and for AAON to open 0.42% lower, all else being equal.
When an S&P 1500 component reaches 20 years of dividend increases, it becomes a contender to join the elite "Dividend Aristocrats" index. Analog Devices Inc (Symbol: ADI) is a " future dividend aristocrats contender ," with 15+ years of increases.
Below are dividend history charts for ADI, MXIM, and AAON, showing historical dividends prior to the most recent ones declared.
Analog Devices Inc (Symbol: ADI) :
Maxim Integrated Products, Inc. (Symbol: MXIM) :
AAON, Inc. (Symbol: AAON) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.15% for Analog Devices Inc, 3.47% for Maxim Integrated Products, Inc., and 0.84% for AAON, Inc..
In Monday trading, Analog Devices Inc shares are currently up about 0.6%, Maxim Integrated Products, Inc. shares are up about 0.4%, and AAON, Inc. shares are up about 1.2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If they do continue, the current estimated yields on annualized basis would be 2.15% for Analog Devices Inc, 3.47% for Maxim Integrated Products, Inc., and 0.84% for AAON, Inc.. Looking at the universe of stocks we cover at Dividend Channel , on 11/28/18, Analog Devices Inc (Symbol: ADI), Maxim Integrated Products, Inc. (Symbol: MXIM), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. Analog Devices Inc will pay its quarterly dividend of $0.48 on 12/10/18, Maxim Integrated Products, Inc. will pay its quarterly dividend of $0.46 on 12/13/18, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 12/20/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 11/28/18, Analog Devices Inc (Symbol: ADI), Maxim Integrated Products, Inc. (Symbol: MXIM), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. Analog Devices Inc will pay its quarterly dividend of $0.48 on 12/10/18, Maxim Integrated Products, Inc. will pay its quarterly dividend of $0.46 on 12/13/18, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 12/20/18. Analog Devices Inc (Symbol: ADI) : Maxim Integrated Products, Inc. (Symbol: MXIM) : AAON, Inc. (Symbol: AAON) : In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel , on 11/28/18, Analog Devices Inc (Symbol: ADI), Maxim Integrated Products, Inc. (Symbol: MXIM), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. Analog Devices Inc will pay its quarterly dividend of $0.48 on 12/10/18, Maxim Integrated Products, Inc. will pay its quarterly dividend of $0.46 on 12/13/18, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 12/20/18. Analog Devices Inc (Symbol: ADI) : Maxim Integrated Products, Inc. (Symbol: MXIM) : AAON, Inc. (Symbol: AAON) : In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel , on 11/28/18, Analog Devices Inc (Symbol: ADI), Maxim Integrated Products, Inc. (Symbol: MXIM), and AAON, Inc. (Symbol: AAON) will all trade ex-dividend for their respective upcoming dividends. If they do continue, the current estimated yields on annualized basis would be 2.15% for Analog Devices Inc, 3.47% for Maxim Integrated Products, Inc., and 0.84% for AAON, Inc.. Analog Devices Inc will pay its quarterly dividend of $0.48 on 12/10/18, Maxim Integrated Products, Inc. will pay its quarterly dividend of $0.46 on 12/13/18, and AAON, Inc. will pay its semi-annual dividend of $0.16 on 12/20/18.
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10476.0
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2018-11-01 00:00:00 UTC
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Aaon (AAON) Misses Q3 Earnings and Revenue Estimates
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AAON
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https://www.nasdaq.com/articles/aaon-aaon-misses-q3-earnings-and-revenue-estimates-2018-11-01
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nan
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Aaon (AAON) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -10%. A quarter ago, it was expected that this maker of air conditioning and heating equipment would post earnings of $0.20 per share when it actually produced earnings of $0.22, delivering a surprise of 10%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Aaon, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $112.94 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 15.72%. This compares to year-ago revenues of $113.67 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Aaon shares have lost about 6% since the beginning of the year versus the S&P 500's gain of 1.4%.
What's Next for Aaon?
While Aaon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Aaon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $115 million in revenues for the coming quarter and $0.87 on $457.70 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Air Conditioner and Heating is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaon (AAON) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.30 per share. Aaon, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $112.94 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 15.72%. Aaon shares have lost about 6% since the beginning of the year versus the S&P 500's gain of 1.4%.
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Aaon, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $112.94 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 15.72%. Aaon (AAON) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.30 per share. Aaon shares have lost about 6% since the beginning of the year versus the S&P 500's gain of 1.4%.
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Aaon (AAON) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.30 per share. Aaon, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $112.94 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 15.72%. Aaon shares have lost about 6% since the beginning of the year versus the S&P 500's gain of 1.4%.
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Aaon (AAON) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.30 per share. Aaon, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $112.94 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 15.72%. Aaon shares have lost about 6% since the beginning of the year versus the S&P 500's gain of 1.4%.
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2018-11-01 00:00:00 UTC
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Aaon Inc (AAON) Q3 2018 Earnings Conference Call Transcript
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-q3-2018-earnings-conference-call-transcript-2018-11-01
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Aaon Inc (NASDAQ: AAON)
Q3 2018 Earnings Conference Call
Nov. 01, 2018 , 4:15 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Hello, my name is Philip and I'll be your conference operator today. At this time, I would like to welcome everyone to the AAON Inc. Third Quarter Sales and Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions).
Thank you. And I'd now like to turn the call over to your host Mr. Gary Fields. Sir, please ahead.
Gary Fields -- President & Director
Good afternoon. I'd like to read the forward looking disclaimer. To the extent any statement presented herein deals with information that is not historical, including the outlook for the remainder of the year, such statement is necessarily forward-looking and made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated. Please see the risk factors contained in our most recent SEC filings including the annual report on Form 10-K and the quarterly report on Form 10-Q.
So, now I'd like to turn it over Scott Asbjornson, CFO to discuss some of the financial details.
Scott Asbjornson -- Chief Financial Officer
Welcome to our conference call. I'd like to begin by discussing the comparative results of the three-months ended September 30, 2018 versus September 30, 2017. Net sales were down 0.6% to $112.9 million from $113.7 million. Net sales for the quarter are mainly due to decreases in rooftop unit sales.
Our gross profit decreased 8.1% to $32.8 million from $35.7 million. As a percentage of sales, gross profit was 29% in the quarter just ended compared to 31.4% in 2017. The company saw improvements in its gross profit in the third quarter compared to previous quarters in 2018. The company continues to experience increases in raw material costs due to tariffs and trade restrictions.
Selling, general and administrative expenses increased 1.2% to $13.2 million from $13.0 million in 2017. As a percentage of sales, SG&A increased to 11.7% of total sales in the quarter just ended from 11.5% in 2017.
Income from operations decreased 13.5% to $19.6 million or 17.3% of sales from $22.6 million or 19.9% of sales. Our effective tax rate decreased to 28.2% from 35.3%. The company's estimated annual 2018 effective tax rate excluding discrete events is expected to be approximately 26%. The decrease in our effective rate was due to the Tax Cuts and Jobs Act that was enacted on December 22, 2017 lowering the federal corporate tax rate to 21%.
Net income decreased to $14.1 million or 12.5% of sales compared to $14.7 million or 12.9% of sales in 2017. Diluted earnings per share decreased by 3.6% to $0.27 per share from $0.28 per share. Diluted earnings per share were based on 52,628,000 shares versus 53,14,000 shares in the same quarter a year ago.
The results for the nine-months ended September 30, 2018 versus September 30, 2017. Net sales were up 6.8% to $321.6 million from $301.1 million. Net sales for the nine-months ended are up mainly due to the increase in our water-source heat pump line, which has a lower profit margin causing the percentage of net sales to not increase in proportion to the percentage increase in total units.
Our gross profit decreased 18% to $75.7 million from $92.3 million. As a percentage of sales gross profit was 23.5% as compared to 30.7% in 2017. In January 2018, the company paid all employees a one-time bonus of $1,000 per employee as a result of the Tax Cuts and Jobs Act, the act which lowered the federal corporate tax rate from 35% to 21%. This bonus increased cost of sales by $1.9 million, excluding taxes and benefit.
Additionally, the company typically have seasonality in its sales and workforce, with the fourth and first quarter being lower in production. The company maintained a higher level of workforce through the end of 2017 and beginning of 2018 in anticipation of our growing business. While significant improvements have occurred in the second and third quarters of 2018, the company's gross profit is still recovering from the events that occurred in the first quarter.
Selling, general and administrative expenses increased 2.7% to $36.5 million from $35.5 million in 2017. As a percentage of sales, SG&A decreased to 11.3% of total sales as compared to 11.8% in 2017. The overall decrease as a percentage of sales in SG&A was primarily due to the decrease in profit sharing, which is just the result of lower earnings for the year.
Income from operations decreased 30.8% to $39.3 million or 12.2% of sales from $56.7 million or 18.8% of sales. Our effective tax rate decreased to 23.8% from 32.1%. The company's estimated annual 2018 effective tax rate, excluding discrete events, is expected to be approximately 26%. The decrease in our effective rate was due to the Tax Cuts and Jobs Act that was enacted on December 22, 2017, lowering the federal corporate tax rate to 21%.
Net income decreased to $30.0 million or 9.3% of sales compared to $38.7 million or 12.9% of sales in 2017. Diluted earnings per share decreased by 16% to $0.57 per share from $0.73 per share. Diluted earnings per share was based on 52,715,000 shares versus 53,107,000 shares in the same period a year ago.
Looking at the balance sheet, you'll see that back we had a working capital balance of $91.0 million versus $103.7 million at December 31, 2017. Cash and investments totaled $10.7 million at September 30, 2018, the investments and maturities ranging from one month to two months. Our current ratio is approximately 2.7:1. Our capital expenditures were $34.3 million. We expect capital expenditures for the year to be approximately $40 million. The company had stock repurchases of $18.4 million year-to-date. Shareholders' equity per diluted share is $4.50 at September 30, 2018, compared to $4.70 at December 31, 2017. We continue to remain debt-free.
I'd now like to turn the call over to Gary Fields, our President, who will discuss our results in further detail along with new products and the outlook for the remainder of the year.
Gary Fields -- President & Director
Good afternoon. So, net sales decreased 0.6% for the quarter. They are up 6.8% year-to-date. We've had price increases that have gone into effect and are becoming effective on the actual equipment shipped, the related impact to that is that we are gaining -- regaining our margin percentages. At the same time we've had market pressures from increased steel cost due to the tariff, increased aluminum costs and now component cost.
The price increases that we've put into effect are beginning to offset all of those other price increases and we look for this to be somewhat accretive over the next quarter.
Water-Source Heat Pump business is beginning to gain some momentum. We achieved our AHRI certification a few months ago. Orders coming in the door are increasing at a rate that's what we expected. We have been redesigning some of our legacy products to gain efficiencies and to gain some other operational strategies. One of those operational strategies that we had not previously participated in is the grow business, as many of you know, medical marijuana and so forth has been legalized in many states, and this has prompted demand for these facilities that have very specialized environments. Aaon was very well equipped to make some small modifications to our products and gain a very substantial foothold in a new and emerging business. Our replacement market versus new construction remains fairly steady at about 50-50.
We've had continued growth in our large tonnage products gaining market share as well as just an increase in overall production of those machines. The Water-Source Heat Pump as I mentioned previously, is coming up to speed, beginning to get on track with our expectations, still lagging behind somewhat but it's gaining.
The various market segments remained fairly steady, commercial and retail, office building, medical, healthcare, education, manufacturing, lodging, municipalities are not seeing any material changes in those. Two markets that we have gained some -- as I mentioned, the growth facilities and another one is the data center support business. So while we don't typically furnish equipment in the core of the data center, there's many support areas that have UPS, equipment that needs to be cooled and pressurization for quarters in order to maintain temperature and humidity in those. So we've gained some really nice accounts with that as a focus.
Our backlog at September 30 was $126.8 million versus $73.8 million a year ago. So this reflects the strong order intake that we've achieved this year while we've been struggling to get the production rates to increase. We are making some headway with that, but it's not been as rapid as the ascension of the order intake. So the remainder of 2018, we'll see increasing Water-Source Heat Pump production. We are about to complete our R&D lab. We have certain aspects of that lab that are usable right now that we've begun to utilize this lab. We had a big national sales meeting on October 1st and brought in approximately 700 of our sales channel partner individuals and introduced them to this new lab. This is going to be a real game changer for our business.
The gross profit has been improving quarter-over-quarter throughout the year and we look for further improvement in the upcoming quarters, getting back to near if not at historical levels. The capital expenditures for 2018, we have revised that to be approximately $40 million at this time. I think, we had spent up-to-date $34,300,000, which was completing the lab and completing our Water-Source Heat Pump manufacturing facilities. The few things left to do are upcoming yet.
We had one time talked about a new site for air handling units. We're going to keep our finger on the pause button on that for a while, it's still an exciting development that we'll be able to utilize here, but I think it's prudent for us to get the Water-Source Heat Pump business gain a little maturity in that business and get some other things streamlined around here. And also, as you saw, our cash position has gone down a little bit and so I'd like to strengthen our cash position before we pursue any other major expansions like an air handling unit business.
With that, I'll open it up to questions.
Questions and Answers:
Operator
(Operator Instructions) Your first question is from the line of Joe Mondillo.
Gary Fields -- President & Director
Hello, Joe.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Hi guys, good afternoon.
Gary Fields -- President & Director
Good afternoon.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
I wanted to ask you guys about -- so lower productivity, I imagine lower productivity sort of costs, sales to only increase from the second quarter by about 3%. So sequentially, you saw a 3% revenue growth despite the strong backlog and that's because of lower productivity. On the other hand, you saw your margin sequentially improved by like 400 basis points and that sort of because of productivity. So I'm just wondering if you could sort of distinguish why revenue was not very good because of productivity, but margin was good because of productivity. If you could clear that up.
Gary Fields -- President & Director
Well, there's two factors there. One of them is, we had some price increase from back in November that finally found its way onto the plant floor. That was a, I believe that was a 3% price increase across the board that went into effect in November and just due to backlog and lead times. It took all the way to the third quarter to get that fully enabled. So that helped part of it.
The other part of it is, that we, in the second quarter, we ramped up and added a considerable number of people to the plant staff and these actually ended up being disruptive because the people while they came in with little knowledge of how to do what we do, they distracted almost an equal number of people that we're trying to train them, so in the -- throughout the third quarter, as attrition took place for various reasons, we allowed that attrition to shrink our staff on the plant floor somewhat, so that helped us with that efficiency because we weren't paying those people for doing nothing. Yet this smaller staff was able to build like, you said, almost exactly the same amount of equipment that they did in the previous quarter.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay and then, so with this improvement that we're making here should we anticipate daily sales to improve at the same time that productivity improvement is taking place. And then on top of that, you get price increases that -- the June price increase that starts hitting. So, it seems like price increase and maybe productivity should boost the gross margins a good amount in the fourth quarter?
Gary Fields -- President & Director
Joe, I agree with both of those. First off, we had a second price increase that went into effect on June 15th for orders coming in the door, due to the backlog and lead time. We will get about 75% to 80% of everything we build in the fourth quarter will be at that new price. So that was a 5% price increase across the Board in June. If we do the math and we call it 80% of what we build, that gets you a net gain of 4%.
Now, their are other things to keep note of, is we had steel contracted for that, that got us all the way through third quarter without having any real impact from the tariff on steel. That ended, so in fourth quarter we'll be purchasing steel at the new price, the inflated price. We have had pressures from aluminum all along. So now, we'll be able to offset that some more. We've had pressures from increased component prices. The most recent tariff went into effect, I'd say in the last 30, 45 days, 60 days, something like that. It was another 10% on small components like contactors and capacitors and kind of accessory items not big items.
So in summary, we'll have about 4% useable of the price increase in the fourth quarter and I think that the increased materials will take up about half of that. Then in December, give me the exact date on wage rate changes. December 3rd, we'll have some escalating wage rates. So the very last month of the quarter, we'll have some wage rate increases, that salaries and wages. So those will absorb a bit more of that, but we are now on top of the curve with regards to our price increases versus our rising cost. So, I think, it's a very valid statement that our margins will continue to improve.
Now, on a daily basis, in the month of October, we have seen on a daily basis, an increase in productivity. As far as dollars per day going out the door. It's not been drastic, but it's been improving. And so it tells us that a lot of the things that we did, to correct these actions and get more production out the door are effective. We did that through multiple things, one of which was a revised and enhanced on-boarding process and training program for these plant workers. So all of this being said, I'm very confident that fourth quarter we'll see some marginal improvement as well.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. And then I wanted to ask this is, I guess sort of a product mix question and it sort of two par. Roof, I noticed rooftop units were down year-over-year in the third quarter and chillers and air handlers were actually up. Could you comment on product mix. And then also, I know in the beginning of the year, you were talking about how large, lower margin type units were somewhat of an issue and I think maybe the December and November price increase was going to try to compare(ph) that, so it's sort of a two-par product mix -- pricing question.
Gary Fields -- President & Director
Sure. Okay, so let's address rooftop units first. We have a range of rooftop units that go from 2 tons to 210 tons. So our two-ton through approximately 20-ton units have been very steady. Very slight change, but nothing material as far as number of units. What has increased has been the larger tonnage units, while those were in equal dollars. So the dollars didn't change much. We went from $113,668 down to $112,937. So there wasn't much dollar change. Yet, those units were down by 450, 480 units. So, the units are larger and more expensive. I'm going to tell you the 50 to 70 ton range, those units have increased in their market share and their number of units, but at the same time, sort of the mid-sized units went down for the quarter. So, that product mix change -- the units that -- well, really, they go from about 40 tons to 70 tons. Those are a very nice margin unit. The units that are above 70 tons are the ones that we've had the lower margin on. However, our price increases have been aggressive on those units. And while there still lower than the benchmark margin, we've actually improved them a good bit.
Now, another thing with total number of units going on from 6,258 up to 6,547, you'll notice that we've built almost twice as many heat pumps. That's the new water source heat pumps that we've been talking about. So, in 2017 in the same three-month period, we built 614 units. In 2018, we built 1,161 and if you look at it on a year-to-date basis, it's 3,780 compared to the same nine-month period last year, 1,510. So, we've more than doubled our production rate on water source heat pumps.
We're seeing the orders coming in at a rate of expansion that supports that growth on a continued basis, since our AHRI approval, we've seen what we expected that the order rates have increased substantially.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. Thanks. I appreciate that. Lastly, I'll allow someone else to have a shot. The warranty expense, last year, I remember this bouncing up to over $3 million a quarter, and it seemed like it was going to be sort of temporary. And then it's sort of fell down in the first quarter to, maybe a $1.5 million, in the first quarter and it seemed like that was sort of temporary in nature, but then in the second quarter, bounced again above $3 million -- and it was $3 million -- above $3 million in the third quarter. Could you sort of explain, sort of what's going on here? And, if you still do think that sort of settles back down to closer to historical levels?
Gary Fields -- President & Director
Yeah, it is settling down. So the actual spend for the three-months ending September 30, was 3.050 million(ph) versus 2017 was $3,277 million(ph). So we have had a slight decrease in the spend in that quarter -- oh, that's accrual, I'm sorry. Let me recorrect that. The spend was $2,355 million(ph) versus $2,281 million(ph). So it was a very modest increase in actual spend. However, this has oscillated, like you say, it went down for a bit and then it came back up. Some of it was due to some seasonal repairs. We had actually began to accrue for some that -- that we knew occurred that we couldn't actually spend the money to do the repairs and until the weather got right.
We identified two major areas that we had concern. One (Technical Difficulty) and another one was a component supplier. And we have remedied both of those, so that's why we are confident that we will have a declining rate in warranty expense.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. So when you say -- just a follow-up and clarify. When you say, declining rate, do you anticipate as a percent of sales it's going to decline? Or will it declined from, I mean, historically the warranty expense was closer to a $1 million a quarter. So will it decline closer to the historical levels? Or are you just saying, as a percent of sales, it's going to remain elevated for whatever reason, but as a percent of sales, it's going to decline, but absolutely it will remain elevated.
Gary Fields -- President & Director
Well, I think, first off, as a percent of sales, I think it will decline because we're going to have increasing sales and I don't think we'll have an acceleration in the current(ph). Now, the absolute dollars spent to your point there, I also believe that, that's going to begin to curtail here pretty quickly actually because some of those items were resolved and paid for. And our primary one was that the paint issues, we had a paint process that -- that failed on us, that was in early to mid-2017.
And then, we had a slight reoccurrence in January, a very slight, we'll call it a whiplash. But we, by and large resolved the issue with paint in the fall last year, so there was, like I said, just a very small reoccurrence, and it was actually kind of a strange situation, how it reoccurred. But we identified what that was and corrected that as well. So the paint issue was fairly substantial in actual dollars spent. And that is absolutely resolved. We've had no reoccurrence since the one isolated incident that was back in January. Then we had a component manufacturer that we had an issue with that really manifest itself early last year.
Two things occurred there. One was, we issued a service bulletin, a procedure that could be done that would enable this component to have a more expected -- life expectancy. And so that, service bulletin procedure, we had to pay for those and those trickled in as our field service reps were able to apply the -- the cure if you will. And so that's also largely completed. Now, that -- both of those things took long -- longer to get completed than what I thought they would. The total dollar spend was what we thought it would be. It just took longer because of the seasonality in the workforce out there to actually resolve the problems.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
And going forward, whatever warranty reserves that you're reserving are related to that issue as well as the paint should subside, I guess?
Gary Fields -- President & Director
Well, it will, but the warranty reserve, there is an accrual method there, and it's a little slower to respond in the actual accrual. So it takes more historical data to support a change.
Scott Asbjornson -- Chief Financial Officer
You've got a couple of years where this -- what has happened over the last 12 months is going to flow through the calculation, and it's going to take a little while for that to flush out. If you go back and you look at when did the unit ship versus when did you incur the warranty costs, and you then you're making projections. So we've got to wait for that same amount of time to go past in the future without having those problems. Before that we'll fall out of the calculation.
So, as we teach several products for improving for -- as if that's going to happen, again, when we really don't. We anticipate we have resolved the problem, it's not going to reappear. But through our process, we're saying on the half chance that it does, we've got a reserve for it.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
I see. And in terms of that anniversary or future time period, is that something like 12-months or how does that unit start to decline?
Scott Asbjornson -- Chief Financial Officer
I'd say most -- most of the units that we shipped out, we found the problems within about 12 to 18 months.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. All right. Thank you. Appreciate it. I'll hop back in queue.
Operator
Your next question is from the line of Brent Thielman.
Gary Fields -- President & Director
Hello, Brent.
Brent Thielman -- D.A. Davidson -- Analyst
Good afternoon. Gary, how much of the $53 million odd increase in backlog, could you kind of parse it out for us? How much of it's kind of the traditional HVAC products versus heat pump products. Do you feel for where that growth is coming from?
Gary Fields -- President & Director
In the backlog, I would say a preponderance served it in legacy product, while the water-source heat pump is accruing a backlog that's beginning to register on the meter. It's not the preponderance of that backlog.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. And you talked about some of the new -- newer market opportunities out there. What kind of feedback, I mean, do you get from field, just in terms of commercial market overall? Do you feel like, an absolutely nice bump in backlog, looks like a lot of it's reflective kind of traditional business. Does it feel like, it was year-end markets are accelerating the pace?
Gary Fields -- President & Director
It's feels like that we began to see an acceleration in May. Our sales channel actually started forecasted and acceleration clear back that was supposed to have occurred in January. There was factors that we've still not identified as to why January, February and March were all below their forecast. But if I take it in some total, the first nine-months of the year, were at 97% of what they forecast for year-to-date. So their forecast was quite accurate within 3% of being perfect. That being said, the -- what they had forecast was about a 15% to 16% growth this year, in orders coming in the door versus 2017. So there's been strength there.
Beginning in May, we began to see that here, of course, June was a little artificial for us, because of the price increase. Now, as all of this has occurred, we determine that about $35 million of the $156 million backlog at the end of the second quarter was pull forward because we looked at the forecast and then how it actually occurred throughout the third quarter and believe that that $35 million what if just occurred in the third quarter as far as orders coming in the door.
Now, if I look at architectural billing index, I find it other than the Northeast region, every region is recently reported above the benchmark of $50 million, which in -- indicates growth. The overall -- I don't have the exact number in front of me, but it seems to me, it was around $52 million --
Scott Asbjornson -- Chief Financial Officer
I believe so.
Gary Fields -- President & Director
I believe the number right now is around $52 million for this latest report. What we've had billed is 11 months in a row that have been above $50 million. So that is a firm indicator for our style of business telling us what's going to occur for the next nine months. So each month that rolls on, I look nine-months out and say it's going to be steady. Our sales channel partners were in here last month for a sales meeting on a National Sales Meeting, we had approximately 700 individuals that came in. And before they saw what we were doing at the sales meeting, they were all very excited about the market opportunities and what was going on. When they saw the new product additions and the new product enhancements we've done along with our laboratory, the tenor of the Group went to high pitch scream of excitement.
So, when you've got your sales channel partners this involved, this excited about what we're doing, I think that's going to support firm growth for us for a long time somewhat irregardless of what the market does. Because if we get more of their time, then the other manufacturers that are on their line sheet get less of their time. And so more of their time results in more sales for us.
Brent Thielman -- D.A. Davidson -- Analyst
That's great color. I appreciate that. And we talked before just about some of the challenges in labor constraints in the toll(ph) some market. I mean it looks like you kind of work through those issues. I guess my question is with this sort of gross in the business, do you foresee a need that kind of go on another tranche of hiring here in the near term, do you feel like you have what you need in place, factories to support the growth -- that looks like it's coming?
Gary Fields -- President & Director
Well, I think that we need to have some incremental growth in those personnel in mind at all times. What we did was because the forecast came up so short in the first quarter and it damaged our first quarter results as a result of that. I was a little bit hesitant to add people on an incremental basis because it seem that I might be over staffed. Well, then this huge swing in orders came in and we tried to staff up somewhat to meet that swing in orders. So that made an incremental percentage and it was just out of control. I don't know what the exact -- do we had over 20%?
Scott Asbjornson -- Chief Financial Officer
At the peak, it was over 20%.
Gary Fields -- President & Director
Yes, we had it over 20% at one time. The task of onboarding those people effectively, we weren't up to the task. We just, we couldn't do it. So what we've done is gone back to a more managed approach where we are onboarding people at a more reasonable rate, something that we can be effective with and we proved that in the third quarter with the improved margins and then further with what I'm looking at that just occurred in October, we've improved again. In October, we are down 230 individuals versus our peak, which is about roughly 10% I guess. And we are producing more dollars per day than we've ever produced. So that gave us clarity on the fact that yes, we need to add people. But we have to do it at a more controlled rate in order to get the effectiveness out of them and not be so disruptive to the other existing workers.
Brent Thielman -- D.A. Davidson -- Analyst
Okay, that's great. And then maybe one more from me. With the pump orders coming in, the certifications behind you. It sort of seems like everything's in order here, for all systems go. Are you comfortable kind of helping frame for us a target, you're thinking about for pump revenue over the next 12-months?
Gary Fields -- President & Director
I am not yet comfortable declaring anything there because two things. We went from 40 hours a week which was five, eight hour days. And we just about three weeks ago, turn this onto a seven days a week. And there are 3.5 days each shift 12 hours. When we did that we spread some of the experienced personnel between the two shifts and we actually went backwards a little on the number of units per week that we were producing. So until I get a little more maturity on that workforce, I'm a little reluctant to give any kind of a firm production schedule on the dollars. What I will tell you is that in October, our orders were up coming in the door, were up 30% over September. So we have got to get this resolved. I think that we're on track to get it resolved. But it remains a substantial challenge.
Brent Thielman -- D.A. Davidson -- Analyst
Okay, understood. I appreciate your color. (Multiple Speakers)
Gary Fields -- President & Director
I guess we could add the final color on that. We can get the orders. We got to approve, we can build them. And that's what we're working on.
Brent Thielman -- D.A. Davidson -- Analyst
Okay, understood. Thanks guys.
Operator
Your next question is from the line of Brian Gustafson.
Brian Gustafson -- -- Analyst
Hey, guys. Just coming in at a different way, can you maybe talk about capacity utilization and where you were this quarter and where you think it can get to?
Gary Fields -- President & Director
Well, from a facility standpoint, we've already determined that we have the facilities currently in place with no modifications to run $60 million a month. We have the ability to get orders here not quite at that rate yet, but we've got the ability to get the orders in. What we don't have is the qualified trained personnel to get those orders built. So the facilities here, the equipments, the manufacturing equipment in place to do that as we get more maturity on these people and then bear in mind, we're in the range of 3% unemployment rate. So when you add people, even when you get them trained, you're not talking about the cream of the crop people.
So, on a per head basis what we put out, we may have some new metrics to consider and as time goes by, our training programs that we're putting in place should help us to utilize these people to the best of their ability. But I just -- I don't see any constraints from a facility standpoint or from a manufacturing equipment standpoint, it's all from a personnel standpoint. And I'm talking about personnel on the plant floor. From engineering -- manufacturing engineering, production control, all of these other aspects of the business, we have a great staff right now that is capable of handling quite a lot more business than what we've actually been able to produce. So from the supervisory and management positions up, I think we're in good shape. It's just the basic manufacturing workers themselves that we've got to get in better shape to increase this volume.
Brian Gustafson -- -- Analyst
Got it, but it sounds like you're improving back capacity utilization that -- they are becoming more efficient as the -- from over the summer into this quarter.
Gary Fields -- President & Director
Very much so and like I said earlier, October has shown us some other key improvements that we've achieved, so a lot of the things that Scott and I have been working on together with his HR Group and with our production control group are beginning to manifest themselves. So once you understand what these successful strategies are, then you just begin to utilize it more broadly.
Brian Gustafson -- -- Analyst
But just thinking like, what do you think the max revenue per quarter is that you could do with this workforce situation you have now. Is that -- plus or minus --
Gary Fields -- President & Director
You just saw pretty close to it with what I've got now.
Brian Gustafson -- -- Analyst
(inaudible)110 and 150?
Gary Fields -- President & Director
Yes. We might be able to improve that 5% or something like that through efficiencies, but we've got to be able to onboard more people effectively in order to really get the rate moving in the right direction.
Scott Asbjornson -- Chief Financial Officer
I think also what where you want to say is that it depends as well how effectively we onboard those people and then increase the total number of people that we have. So, it really is, it's about getting them on our staff and trained and we can raise that number beyond that 5% higher than where we're at. It's just an issue of getting enough of these people in and stabilized.
Brian Gustafson -- -- Analyst
Okay. Great, thank you guys.
Operator
(Operator Instructions) You have a follow-up from the line of Joe Mondillo.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Hi, guys.
Gary Fields -- President & Director
Hello Joe.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Just couple of follow-up questions. Just wondering sort of what you're hearing from your customers related to maybe the delays in production and longer lead times, any cancellations or any -- anything related to that, any thoughts?
Gary Fields -- President & Director
Yeah, we've had zero cancellations and it was interesting. One of my Board members asked me the other day, if the weather had had any impact on us because there had been heavy rain on the East Coast, heavy rain in Texas, there been a hurricane. So on and so forth, and I said thankfully, yes. What that did was some of those people that were affected by that have called and said, hey, can you postpone my order for a bit. So, that allowed us to shuffle somebody else's order in front of them that was more critical that by chronology, they would have been later. So we have spent an inordinate amount of effort, managing the relationship with our customers and their expectations. We're very aggressive at publishing what our lead times are, we update that frequently to make sure that they understand where we're at with lead times. I don't want to tell you that we take this lightly at all, but I want to tell you that it's been more manageable then what I expected under the circumstances.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. And in terms of publishing the higher lead times, do you think any of the slowdown in order rates is related to that at all. I know some of it most definitely was a pull forward before the price increases, but do you think there's any customers going anywhere else or waiting future period of time to put in an order or anything like that? Related to that?
Gary Fields -- President & Director
No, Joe, I don't believe so. Because I'm looking at it October bookings orders that came in the door and their 20% higher than September bookings.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. You don't happen to have the year-over-year improvement in October, do you?
Gary Fields -- President & Director
I can tell you that we're within ear shot right now booking exactly what we booked all of last year. So, we got like two months left to go for what we're going to increase on bookings. I can let you hold on -- I might be (Multiple Speakers).
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
You're saying -- year-to-date, bookings through October is about similar so after until last year?
Gary Fields -- President & Director
All of 2017, really close.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
All of 2017?
Gary Fields -- President & Director
Hold on -- no, I'm just handed it to me here, it's pretty detailed. Let me look through it. Yes, so our year-to-date bookings are in the range of -- $9 million. Let me look at that was, just tells, let me pull together along here real quick, because I think they're pretty steady, I don't think they've changed at all. Yeah. So our total -- our total right now, we're in range, were just a few million dollars short of what we booked the entire year 2017, that as at the report that came out first thing this morning. So we've got November and December yet to book in our forecast for those are very strong, much stronger than we've ever had for November and December before.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. So you're anticipating November-December to be up year-over-year from November-December 2017?
Gary Fields -- President & Director
Absolutely. And so our backlog finishing out the year is going to be extraordinary comparatively.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. Also I wanted to just clarify the price increases in the future that you have in place. Is it just the December, I think, I want to say 10 price increases that all you have in place. Is there anything else?
Gary Fields -- President & Director
Okay. So we had a price increase June 15, of 5% across the board due to lead time and backlog about 80% of that price increase will actually be effective on product built in the fourth quarter. So, it obviously would be a 100% in the first quarter, that 5%. The next price increase goes into effect on December 5th, again, due to lead time and backlog I would not expect any of the December 5th, equipment to hit the plant floor sooner than about the middle of the second quarter. There might be a little tiny bit hit in the tail end of the first quarter, but the vast majority had a little hit in the second quarter, predominantly the middle of the second quarter.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
And that's across the board price increase or more selective?
Gary Fields -- President & Director
It was 4% across the board.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay.
Gary Fields -- President & Director
Hold on, hold on, wait a minute, I just -- the products that we build in Longview, we did not have an additional price increase. When we went back to June we changed some multipliers and we effectively had a 8.5% price increase on the Longview products in June. So that was cumulatively all we needed.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. And then lastly, just two things, probably for Scott. The tax rate, did you say -- did you say, you anticipate the go forward tax rate even into 2019 to be 26%. Did I hear that right?
Scott Asbjornson -- Chief Financial Officer
That's what we estimated at this point. Yes.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. And then, the CapEx was a little -- seems to be a little lower than you originally anticipating with --
Scott Asbjornson -- Chief Financial Officer
That's correct.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Is anything being pushed into 2019, and sort of what kind of budget, ballpark are you thinking for 2019 or is it too early to tell?
Gary Fields -- President & Director
We're still putting together 2019 at this point. And really, we always overestimate what we're going to get done, and this year is really no different just a number were maybe a little bit bigger at the beginning of the year. So we haven't purposefully pushed off anything of significance into next year, it's just been the management of the projects. And I'm trying to get everything completed.
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Okay. All right. Well, I appreciate it guys. Thanks for taking my questions.
Gary Fields -- President & Director
Thank you.
Scott Asbjornson -- Chief Financial Officer
Thank you.
Operator
And there are no further questions at this time.
Scott Asbjornson -- Chief Financial Officer
Okay. Well, we thank you for all your calls and questions. So we'll speak to you again in February for our year-end results. Good day.
Operator
That does conclude today's conference. Thank you for participating. You may now disconnect.
Duration: 53 minutes
Call participants:
Gary Fields -- President & Director
Scott Asbjornson -- Chief Financial Officer
Joe Mondillo -- Sidoti & Company, LLC -- Analyst
Brent Thielman -- D.A. Davidson -- Analyst
Brian Gustafson -- -- Analyst
More AAON analysis
Transcript powered by AlphaStreet
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaon Inc (NASDAQ: AAON) Q3 2018 Earnings Conference Call Nov. 01, 2018 , 4:15 p.m. At this time, I would like to welcome everyone to the AAON Inc. Third Quarter Sales and Earnings Conference Call. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated.
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Aaon Inc (NASDAQ: AAON) Q3 2018 Earnings Conference Call Nov. 01, 2018 , 4:15 p.m. At this time, I would like to welcome everyone to the AAON Inc. Third Quarter Sales and Earnings Conference Call. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated.
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Aaon Inc (NASDAQ: AAON) Q3 2018 Earnings Conference Call Nov. 01, 2018 , 4:15 p.m. At this time, I would like to welcome everyone to the AAON Inc. Third Quarter Sales and Earnings Conference Call. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated.
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Aaon Inc (NASDAQ: AAON) Q3 2018 Earnings Conference Call Nov. 01, 2018 , 4:15 p.m. At this time, I would like to welcome everyone to the AAON Inc. Third Quarter Sales and Earnings Conference Call. As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ materially from those anticipated.
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10478.0
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2018-10-04 00:00:00 UTC
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Air Conditioner and Heating Outlook: Growth Prospects Solid
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AAON
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https://www.nasdaq.com/articles/air-conditioner-and-heating-outlook%3A-growth-prospects-solid-2018-10-04
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Robust construction activity in both residential and nonresidential sectors along with strong technological advancement are driving demand for the Air Conditioner and Heating industry, which includes air-conditioning and heating equipment manufacturers.
An improving economy, accelerated construction spending in the United States, continued investment in technologies designed to revolutionize customer-experience and Trump's impetus to boost infrastructure spending seem to be vital growth catalysts to the industry. Meanwhile, digitization of the companies' marketplace via e-commerce and iOS/Android-enabled apps, supported by the industry's comprehensive database of product information, continues to see momentum.
Additionally, the industry generates a major share of its revenues from maintaining, monitoring and repairing existing equipment that consumers generally cannot suspend. These lend a stable source of revenues when construction markets fluctuate.
However, higher raw material costs, trade tensions, rising freight expenses, stiff competition and the impact of seasonality on the industry's revenues pose significant challenges in the forthcoming quarters.
This industry is susceptible to heavy governmental regulation related to energy efficiency and gas emission. HVAC (Heating, Ventilation and Air Conditioning) systems use refrigerant for cooling that are harmful for the humans and environment.
The industry also faces stiff competition as vendors in the HVAC business compete on performance, reliability, service and price. Importantly, inflation and tariffs have been increasing commodity headwinds. As HVAC projects can take several months to be completed, they are subject to raw material cost fluctuation.
Seasonality is also an important factor that could prove to be detrimental to the industry players. Sales of residential central air conditioners, heating equipment, and parts and supplies have historically been seasonal. The companies' profitability will be impacted favorably or unfavorably, based on the severity or mildness of weather patterns during the summer or winter selling seasons.
Industry Outperforms Sector
Looking at shareholder returns over the past year, it appears that higher demand courtesy of strong construction activity in the United States are boosting investors' confidence in the Air Conditioner and Heating industry's growth prospects.
In a year's time, the Zacks Air Conditioner and Heating Industry , a five-stock group within the broader Zacks Construction Sector , has underperformed the S&P 500 index. The industry has been trading almost in line with its own sector over the same time frame.
While stocks in this industry have collectively gained 15%, the Zacks S&P 500 Composite has rallied 15.9% and the Zacks Construction Sector has declined 5.3%.
One-Year Price Performance
Air Conditioner and Heating Industry Stocks Appear Expensive
One might get a good sense of the industry's relative valuation by looking at its price-to-earnings ratio (P/E), which is the most appropriate multiple for valuing Air Conditioner and Heating stocks.
This ratio essentially measures a stock's current market value relative to its earnings performance. Investors believe that the lower the P/E, the higher the value of the stock will be.
Despite the industry modestly underperforming the S&P 500 scale, the valuation seems high. Currently, the industry has a trailing 12-month P/E ratio of 27.7, which is at a significant premium as compared to the S&P 500's P/E ratio of 20.2.
Price-to-Earnings Ratio (TTM)
Improving Earnings Outlook to Drive Outperformance
Nevertheless, the air conditioner and heating space looks attractive this year given solid economic fundamentals and Trump's vow to boost infrastructure spending along with technological development. Strong industry fundamentals and expectations of solid top-line growth should continue to generate positive shareholder returns in the near future.
However, what really matters to investors is whether this group has the potential to perform better than the broader market in the quarters ahead.
One reliable measure that can help investors understand the industry's prospects for a solid price performance going forward is its earnings outlook. Empirical research shows that earnings outlook for the industry, a reflection of the earnings revisions trend for the constituent companies, has a direct bearing on its stock market performance.
The Price & Consensus chart for the industry shows the market's evolving bottom-up earnings expectations for the industry and its aggregate stock market performance. The red line in the chart represents the Zacks measure of consensus earnings expectations for 2019, while the light blue line represents the same for 2018.
Over the period of one year, the industry has been experiencing positive earnings estimate revisions, increasing collectively by 1% for the current year over the said time frame.
Price and Consensus: Zacks Air Conditioner and Heating Industry
Zacks Industry Rank Indicates Bullish Prospects
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term.
The Zacks acks Air Conditioner and Heating Industry currently carries a Zacks Industry Rank #35, which places it at the top 14% of 256 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Our proprietary Heat Map shows that the industry's rank over the past five weeks.
Air Conditioner and Heating Industry Promises Long-Term Growth
The long-term prospects for the industry indicate steady growth. When compared with the broader Zacks S&P 500 composite, the long-term (3-5 years) EPS growth estimate for the Zacks Air Conditioner and Heating industry of 14.9% appears promising. The corresponding figure for the Zacks S&P 500 composite is 9.8%.
Mean Estimate of Long-Term EPS Growth Rate
In fact, the basis of this long-terms EPS growth could be a sharp improvement in the top line that these Air Conditioner and Heating stocks have been showing since the end of 2014.
Revenues: Zacks Air Conditioner and Heating Industry
Bottom Line
A major boost in infrastructural and construction spending should continue to favor the industry's performance. Additionally, maintaining, monitoring and repairing services along with prudent cost-management practices leveraging technology should provide support. These aforementioned growth factors seem to be offsetting the headwinds arising from rising costs, heavy governmental regulation and competitive pressure.
Currently, only one stock in the Zacks Air Conditioner and Heating Industry carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Watsco Inc. (WSO): The largest distributor of heating, ventilation and air conditioning equipment as well as related parts and supplies in the United States has gained 7.9% over the past year. The consensus EPS estimate for the company has increased 0.2% to $6.67 for 2018, over the past 60 days.
Price and Consensus: WSO
Investors can also consider stocks that currently carry a Zacks Rank #3 (Hold) and are experiencing positive estimate revisions and solid earnings growth prospect.
AAON, Inc. (AAON): Earnings estimates of this Tulsa, OK-based manufacturer of air-conditioning and heating equipment have increased 10.1% over the past 90 days for the current year.
Price and Consensus: AAON
Comfort Systems USA, Inc. (FIX): Earnings estimates for this Houston, TX-based leading provider of mechanical services - including heating, ventilation, air conditioning, plumbing, piping and controls - have exhibited an uptrend over the past 90 days. The consensus EPS estimate for the company has increased 6.3% to $2.72 for 2018, over the period.
Price and Consensus: FIX
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AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Price and Consensus: AAON Comfort Systems USA, Inc. (FIX): Earnings estimates for this Houston, TX-based leading provider of mechanical services - including heating, ventilation, air conditioning, plumbing, piping and controls - have exhibited an uptrend over the past 90 days. AAON, Inc. (AAON): Earnings estimates of this Tulsa, OK-based manufacturer of air-conditioning and heating equipment have increased 10.1% over the past 90 days for the current year. Click to get this free report Watsco, Inc. (WSO): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Watsco, Inc. (WSO): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc. (AAON): Earnings estimates of this Tulsa, OK-based manufacturer of air-conditioning and heating equipment have increased 10.1% over the past 90 days for the current year. Price and Consensus: AAON Comfort Systems USA, Inc. (FIX): Earnings estimates for this Houston, TX-based leading provider of mechanical services - including heating, ventilation, air conditioning, plumbing, piping and controls - have exhibited an uptrend over the past 90 days.
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AAON, Inc. (AAON): Earnings estimates of this Tulsa, OK-based manufacturer of air-conditioning and heating equipment have increased 10.1% over the past 90 days for the current year. Price and Consensus: AAON Comfort Systems USA, Inc. (FIX): Earnings estimates for this Houston, TX-based leading provider of mechanical services - including heating, ventilation, air conditioning, plumbing, piping and controls - have exhibited an uptrend over the past 90 days. Click to get this free report Watsco, Inc. (WSO): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here.
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AAON, Inc. (AAON): Earnings estimates of this Tulsa, OK-based manufacturer of air-conditioning and heating equipment have increased 10.1% over the past 90 days for the current year. Price and Consensus: AAON Comfort Systems USA, Inc. (FIX): Earnings estimates for this Houston, TX-based leading provider of mechanical services - including heating, ventilation, air conditioning, plumbing, piping and controls - have exhibited an uptrend over the past 90 days. Click to get this free report Watsco, Inc. (WSO): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here.
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10479.0
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2018-10-02 00:00:00 UTC
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Oversold Conditions For AAON
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AAON
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https://www.nasdaq.com/articles/oversold-conditions-aaon-2018-10-02
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 29.96, after changing hands as low as $35.945 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 67.6. A bullish investor could look at AAON's 29.96 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares:
Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $36.00.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 29.96, after changing hands as low as $35.945 per share. A bullish investor could look at AAON's 29.96 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $36.00.
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The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $36.00. In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 29.96, after changing hands as low as $35.945 per share. A bullish investor could look at AAON's 29.96 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 29.96, after changing hands as low as $35.945 per share. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $36.00. A bullish investor could look at AAON's 29.96 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 29.96, after changing hands as low as $35.945 per share. A bullish investor could look at AAON's 29.96 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $36.00.
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10480.0
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2018-10-02 00:00:00 UTC
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AAON Shares Cross Below 200 DMA
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AAON
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https://www.nasdaq.com/articles/aaon-shares-cross-below-200-dma-2018-10-02
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nan
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nan
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $35.95, changing hands as low as $35.35 per share. AAON, Inc. shares are currently trading down about 3.1% on the day. The chart below shows the one year performance of AAON shares, versus its 200 day moving average:
Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $35.38.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $35.95, changing hands as low as $35.35 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $35.38. AAON, Inc. shares are currently trading down about 3.1% on the day.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $35.95, changing hands as low as $35.35 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $35.38. AAON, Inc. shares are currently trading down about 3.1% on the day.
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In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $35.95, changing hands as low as $35.35 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $35.38. AAON, Inc. shares are currently trading down about 3.1% on the day.
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AAON, Inc. shares are currently trading down about 3.1% on the day. In trading on Tuesday, shares of AAON, Inc. (Symbol: AAON) crossed below their 200 day moving average of $35.95, changing hands as low as $35.35 per share. The chart below shows the one year performance of AAON shares, versus its 200 day moving average: Looking at the chart above, AAON's low point in its 52 week range is $29.05 per share, with $43.30 as the 52 week high point - that compares with a last trade of $35.38.
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10481.0
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2018-09-04 00:00:00 UTC
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August: Hot Weather and a Hot Market
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AAON
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https://www.nasdaq.com/articles/august-hot-weather-and-hot-market-2018-09-04
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nan
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nan
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Who said that August was a slow, summer month when nothing really happens? Apparently, there were enough investors at their screens to make this one of the best Augusts in years for each of the major indices. The NASDAQ soared 5.7% this month, while the S&P was up 3% and the Dow increased 2.2%.
Well, we thought this week and month would end with Canada joining the recent U.S. - Mexico trade deal. But it wasn't to be…at least not this week. The U.S. and Canada will continue discussions next week.
The major indices bounced around a bit today with the trade discussions up in the air, but there were no dramatic moves by the closing bell. The market knew that the Friday deadline wasn't exactly set in stone and that progress can still be made after this three-day weekend. The worst performance on Friday was the Dow, but it was only down 0.09% (or about 22 points) to 25,964.8 after being lower by more than 100 points at its worst. The index was still up 0.7% for the week.
The best performance was the NASDAQ as tech continues to lead the way. It was up 0.26% on Friday to 8109.5, marking a healthy weekly advance of 2% as names like Apple and Amazon gained more than 5% each over the past five days. The S&P inched higher by 0.01% in the day to 2901.5, but its weekly advance was a more substantial 0.9%.
Again, August turned out to be a very eventful month despite all the vacations and summer hours. We saw Apple become the first American company to be worth $1 trillion, a currency crisis in Turkey, new tariffs and new trade negotiations, and even a couple of President Trump's former associates go to jail. Most importantly though, we saw the NASDAQ and the S&P reach new all time highs…for four consecutive sessions! The economy continues to chug along despite all its challenges. Can't wait to see what September has in store for us!
Today's Portfolio Highlights:
Momentum Trader: You wouldn't think that a paper company would be exciting enough to add to a momentum portfolio. It took Dave by surprise as well. Nevertheless, he added Verso Corp. (VRS) on Friday, which is a Zacks Rank #1 (Strong Buy) with straight A's for the Zacks Style Scores of Value, Growth and Momentum. The editor thinks that rising inflation will put upwards pressure on prices for a commodity like paper. Plus, as its Zacks Rank attests, earnings estimates are on the rise with this year and next year rising by 105% and 60%, respectively, in the last 30 days. In fact, its share price has moved to more than $30 from the low $20s…now that's some real momentum! Dave sold Aaon (AAON) for a 3.3% profit to make room for VRS. Read the full write-up for more on these moves.
Counterstrike:"So, it looks like trade is once again a problem. With China and Canada not willing to comply with Trumps demands, we face a possible escalation with two of our biggest trading partners. Next week could get interesting.
"There were reports that the US and Canada will resume talks next week. But we could definitely see a pullback in the coming weeks if things escalate with China or talks with Canada break down. Still I think this would be a buying opportunity into the end of the year.
"I like buying into a pullback around the 2850 level on any negative headlines. From there I think we will grind higher into the end of the year and try for 3000 on the S&P." -- Jeremy Mullin
Have a Great Labor Day Weekend!
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dave sold Aaon (AAON) for a 3.3% profit to make room for VRS. The major indices bounced around a bit today with the trade discussions up in the air, but there were no dramatic moves by the closing bell. We saw Apple become the first American company to be worth $1 trillion, a currency crisis in Turkey, new tariffs and new trade negotiations, and even a couple of President Trump's former associates go to jail.
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Dave sold Aaon (AAON) for a 3.3% profit to make room for VRS. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. Click here to "test drive" Zacks Ultimate for FREE >> Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dave sold Aaon (AAON) for a 3.3% profit to make room for VRS. Well, we thought this week and month would end with Canada joining the recent U.S. - Mexico trade deal. Nevertheless, he added Verso Corp. (VRS) on Friday, which is a Zacks Rank #1 (Strong Buy) with straight A's for the Zacks Style Scores of Value, Growth and Momentum.
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Dave sold Aaon (AAON) for a 3.3% profit to make room for VRS. But it wasn't to be…at least not this week. The U.S. and Canada will continue discussions next week.
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10482.0
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2018-08-27 00:00:00 UTC
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Is AAON (AAON) Stock Outpacing Its Construction Peers This Year?
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AAON
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https://www.nasdaq.com/articles/is-aaon-aaon-stock-outpacing-its-construction-peers-this-year-2018-08-27
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nan
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nan
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The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. AAON (AAON) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
AAON is a member of the Construction sector. This group includes 99 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. AAON is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAON's full-year earnings has moved 10.13% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, AAON has returned 12.67% so far this year. Meanwhile, the Construction sector has returned an average of -8.02% on a year-to-date basis. This shows that AAON is outperforming its peers so far this year.
To break things down more, AAON belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 5 individual companies and currently sits at #59 in the Zacks Industry Rank. This group has gained an average of 7.54% so far this year, so AAON is performing better in this area.
Investors with an interest in Construction stocks should continue to track AAON. The stock will be looking to continue its solid performance.
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AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Within the past quarter, the Zacks Consensus Estimate for AAON's full-year earnings has moved 10.13% higher. AAON (AAON) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? AAON is a member of the Construction sector.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. AAON (AAON) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? AAON is a member of the Construction sector.
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AAON (AAON) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? To break things down more, AAON belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 5 individual companies and currently sits at #59 in the Zacks Industry Rank. AAON is a member of the Construction sector.
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This shows that AAON is outperforming its peers so far this year. AAON (AAON) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? AAON is a member of the Construction sector.
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10483.0
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2018-08-21 00:00:00 UTC
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Noteworthy Tuesday Option Activity: AAON, PINC, PAYX
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AAON
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-aaon-pinc-payx-2018-08-21
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AAON, Inc. (Symbol: AAON), where a total volume of 860 contracts has been traded thus far today, a contract volume which is representative of approximately 86,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.4% of AAON's average daily trading volume over the past month, of 193,510 shares. Particularly high volume was seen for the $40 strike put option expiring September 21, 2018 , with 617 contracts trading so far today, representing approximately 61,700 underlying shares of AAON. Below is a chart showing AAON's trailing twelve month trading history, with the $40 strike highlighted in orange:
Premier Inc (Symbol: PINC) options are showing a volume of 1,606 contracts thus far today. That number of contracts represents approximately 160,600 underlying shares, working out to a sizeable 44.1% of PINC's average daily trading volume over the past month, of 363,975 shares. Particularly high volume was seen for the $35 strike put option expiring September 21, 2018 , with 604 contracts trading so far today, representing approximately 60,400 underlying shares of PINC. Below is a chart showing PINC's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Paychex Inc (Symbol: PAYX) saw options trading volume of 7,731 contracts, representing approximately 773,100 underlying shares or approximately 43.8% of PAYX's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $77.50 strike call option expiring October 19, 2018 , with 4,270 contracts trading so far today, representing approximately 427,000 underlying shares of PAYX. Below is a chart showing PAYX's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
For the various different available expirations for AAON options , PINC options , or PAYX options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $40 strike put option expiring September 21, 2018 , with 617 contracts trading so far today, representing approximately 61,700 underlying shares of AAON. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AAON, Inc. (Symbol: AAON), where a total volume of 860 contracts has been traded thus far today, a contract volume which is representative of approximately 86,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.4% of AAON's average daily trading volume over the past month, of 193,510 shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AAON, Inc. (Symbol: AAON), where a total volume of 860 contracts has been traded thus far today, a contract volume which is representative of approximately 86,000 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAON's trailing twelve month trading history, with the $40 strike highlighted in orange: Premier Inc (Symbol: PINC) options are showing a volume of 1,606 contracts thus far today. That number works out to 44.4% of AAON's average daily trading volume over the past month, of 193,510 shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AAON, Inc. (Symbol: AAON), where a total volume of 860 contracts has been traded thus far today, a contract volume which is representative of approximately 86,000 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $40 strike put option expiring September 21, 2018 , with 617 contracts trading so far today, representing approximately 61,700 underlying shares of AAON. That number works out to 44.4% of AAON's average daily trading volume over the past month, of 193,510 shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AAON, Inc. (Symbol: AAON), where a total volume of 860 contracts has been traded thus far today, a contract volume which is representative of approximately 86,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.4% of AAON's average daily trading volume over the past month, of 193,510 shares. Particularly high volume was seen for the $40 strike put option expiring September 21, 2018 , with 617 contracts trading so far today, representing approximately 61,700 underlying shares of AAON.
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10484.0
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2018-06-15 00:00:00 UTC
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Strategy To YieldBoost AAON From 1% To 12% Using Options
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AAON
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https://www.nasdaq.com/articles/strategy-yieldboost-aaon-1-12-using-options-2018-06-15
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nan
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nan
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Shareholders of AAON, Inc. (Symbol: AAON) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the October covered call at the $35 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 12% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the stock rises there and is called away, but AAON shares would have to advance 6.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 10.3% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of AAON, Inc., looking at the dividend history chart for AAON below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1% annualized dividend yield.
Below is a chart showing AAON's trailing twelve month trading history, with the $35 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the October covered call at the $35 strike gives good reward for the risk of having given away the upside beyond $35. ( Do most options expire worthless? This and six other common options myths debunked ). We calculate the trailing twelve month volatility for AAON, Inc. (considering the last 252 trading day closing values as well as today's price of $32.85) to be 27%. For other call options contract ideas at the various different available expirations, visit the AAON Stock Options page of StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a chart showing AAON's trailing twelve month trading history, with the $35 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the October covered call at the $35 strike gives good reward for the risk of having given away the upside beyond $35. We calculate the trailing twelve month volatility for AAON, Inc. (considering the last 252 trading day closing values as well as today's price of $32.85) to be 27%. Shareholders of AAON, Inc. (Symbol: AAON) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the October covered call at the $35 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 12% annualized rate in the scenario where the stock is not called away.
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Shareholders of AAON, Inc. (Symbol: AAON) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the October covered call at the $35 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 12% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the stock rises there and is called away, but AAON shares would have to advance 6.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 10.3% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing AAON's trailing twelve month trading history, with the $35 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the October covered call at the $35 strike gives good reward for the risk of having given away the upside beyond $35.
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Shareholders of AAON, Inc. (Symbol: AAON) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the October covered call at the $35 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 12% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the stock rises there and is called away, but AAON shares would have to advance 6.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 10.3% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing AAON's trailing twelve month trading history, with the $35 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the October covered call at the $35 strike gives good reward for the risk of having given away the upside beyond $35.
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Shareholders of AAON, Inc. (Symbol: AAON) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the October covered call at the $35 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 12% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAON's trailing twelve month trading history, with the $35 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the October covered call at the $35 strike gives good reward for the risk of having given away the upside beyond $35. For other call options contract ideas at the various different available expirations, visit the AAON Stock Options page of StockOptionsChannel.com.
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10485.0
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2018-06-05 00:00:00 UTC
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Ex-Dividend Reminder: Terex Corp., AAON and Genpact
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AAON
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https://www.nasdaq.com/articles/ex-dividend-reminder-terex-corp-aaon-and-genpact-2018-06-05
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 6/7/18, Terex Corp. (Symbol: TEX), AAON, Inc. (Symbol: AAON), and Genpact Ltd (Symbol: G) will all trade ex-dividend for their respective upcoming dividends. Terex Corp. will pay its quarterly dividend of $0.10 on 6/19/18, AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/6/18, and Genpact Ltd will pay its quarterly dividend of $0.075 on 6/20/18. As a percentage of TEX's recent stock price of $38.74, this dividend works out to approximately 0.26%, so look for shares of Terex Corp. to trade 0.26% lower - all else being equal - when TEX shares open for trading on 6/7/18. Similarly, investors should look for AAON to open 0.50% lower in price and for G to open 0.25% lower, all else being equal.
Below are dividend history charts for TEX, AAON, and G, showing historical dividends prior to the most recent ones declared.
Terex Corp. (Symbol: TEX) :
AAON, Inc. (Symbol: AAON) :
Genpact Ltd (Symbol: G) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.03% for Terex Corp., 1.00% for AAON, Inc., and 0.98% for Genpact Ltd.
In Tuesday trading, Terex Corp. shares are currently down about 2.5%, AAON, Inc. shares are up about 0.6%, and Genpact Ltd shares are up about 0.3% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If they do continue, the current estimated yields on annualized basis would be 1.03% for Terex Corp., 1.00% for AAON, Inc., and 0.98% for Genpact Ltd. Looking at the universe of stocks we cover at Dividend Channel , on 6/7/18, Terex Corp. (Symbol: TEX), AAON, Inc. (Symbol: AAON), and Genpact Ltd (Symbol: G) will all trade ex-dividend for their respective upcoming dividends. Terex Corp. will pay its quarterly dividend of $0.10 on 6/19/18, AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/6/18, and Genpact Ltd will pay its quarterly dividend of $0.075 on 6/20/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/7/18, Terex Corp. (Symbol: TEX), AAON, Inc. (Symbol: AAON), and Genpact Ltd (Symbol: G) will all trade ex-dividend for their respective upcoming dividends. Terex Corp. (Symbol: TEX) : AAON, Inc. (Symbol: AAON) : Genpact Ltd (Symbol: G) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Terex Corp. will pay its quarterly dividend of $0.10 on 6/19/18, AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/6/18, and Genpact Ltd will pay its quarterly dividend of $0.075 on 6/20/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/7/18, Terex Corp. (Symbol: TEX), AAON, Inc. (Symbol: AAON), and Genpact Ltd (Symbol: G) will all trade ex-dividend for their respective upcoming dividends. Terex Corp. will pay its quarterly dividend of $0.10 on 6/19/18, AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/6/18, and Genpact Ltd will pay its quarterly dividend of $0.075 on 6/20/18. Terex Corp. (Symbol: TEX) : AAON, Inc. (Symbol: AAON) : Genpact Ltd (Symbol: G) : In general, dividends are not always predictable, following the ups and downs of company profits over time.
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If they do continue, the current estimated yields on annualized basis would be 1.03% for Terex Corp., 1.00% for AAON, Inc., and 0.98% for Genpact Ltd. Looking at the universe of stocks we cover at Dividend Channel , on 6/7/18, Terex Corp. (Symbol: TEX), AAON, Inc. (Symbol: AAON), and Genpact Ltd (Symbol: G) will all trade ex-dividend for their respective upcoming dividends. Terex Corp. will pay its quarterly dividend of $0.10 on 6/19/18, AAON, Inc. will pay its semi-annual dividend of $0.16 on 7/6/18, and Genpact Ltd will pay its quarterly dividend of $0.075 on 6/20/18.
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10486.0
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2018-05-25 00:00:00 UTC
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Moving Average Crossover Alert: AAON, Inc. (AAON)
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AAON
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https://www.nasdaq.com/articles/moving-average-crossover-alert%3A-aaon-inc.-aaon-2018-05-25
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nan
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nan
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AAON, Inc.AAON could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for AAON broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness.
This has already started to take place, as the stock has moved lower by 38.3% in the past four weeks. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for AAON stock.
If that wasn't enough, AAON isn't looking too great from an earnings estimate revision perspective either. It appears as though many analysts have been reducing their earnings expectations for the stock lately, which is usually not a good sign of things to come.
Consider that in the last 30 days, 1 estimate has been reduced, while none has moved higher. Add this in to a similar move lower in the consensus estimate, and there is plenty of reason to be bearish here.
That is why we currently have a Zacks Rank #5 (Strong Sell) on this stock and are looking for it to underperform in the weeks ahead. So either avoid this stock or consider jumping ship until the estimates and technical factors turn around for AAON. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON, Inc.AAON could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for AAON stock. So either avoid this stock or consider jumping ship until the estimates and technical factors turn around for AAON.
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And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for AAON stock. Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc.AAON could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front.
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AAON, Inc.AAON could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for AAON broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for AAON stock.
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AAON, Inc.AAON could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for AAON stock. Recently, the 50 Day Moving Average for AAON broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness.
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10487.0
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2018-05-10 00:00:00 UTC
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Falling Earnings Estimates Signal Weakness Ahead for AAON, Inc. (AAON)
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AAON
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https://www.nasdaq.com/articles/falling-earnings-estimates-signal-weakness-ahead-for-aaon-inc.-aaon-2018-05-10
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nan
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nan
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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is AAON, Inc.AAON , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in AAON.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.33 a share a month ago to its current level of 79 cents.
Also, for the current quarter, AAON, Inc. has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 20 cents a share from 34 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.7% in the past month.
AAON, Inc. Price and Consensus
AAON, Inc. Price and Consensus | AAON, Inc. Quote
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Building Products - Air Conditioner and Heating industry, you may instead consider a better-ranked stock - Comfort Systems USA, Inc. FIX . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank stocks here .
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AAON, Inc. (AAON): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One such stock that you may want to consider dropping is AAON, Inc.AAON , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in AAON. Also, for the current quarter, AAON, Inc. has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 20 cents a share from 34 cents over the past 30 days.
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AAON, Inc. Price and Consensus AAON, Inc. Price and Consensus | AAON, Inc. Quote So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait. Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report To read this article on Zacks.com click here. One such stock that you may want to consider dropping is AAON, Inc.AAON , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year.
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Also, for the current quarter, AAON, Inc. has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 20 cents a share from 34 cents over the past 30 days. AAON, Inc. Price and Consensus AAON, Inc. Price and Consensus | AAON, Inc. Quote So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait. Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report To read this article on Zacks.com click here.
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One such stock that you may want to consider dropping is AAON, Inc.AAON , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. AAON, Inc. Price and Consensus AAON, Inc. Price and Consensus | AAON, Inc. Quote So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait. Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report To read this article on Zacks.com click here.
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10488.0
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2018-05-07 00:00:00 UTC
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New Strong Sell Stocks for May 7th
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AAON
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-may-7th-2018-05-07
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
AAON, Inc.AAON is a manufacturer of air conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 3.8% downward over the last 30 days.
Aerojet Rocketdyne Holdings, Inc.AJRD is a developer of aerospace and defense products and systems. The Zacks Consensus Estimate for its current year earnings has been revised 4% downward over the last 30 days.
American Woodmark CorporationAMWD is a manufacturer of kitchen cabinets and vanities. The Zacks Consensus Estimate for its current year earnings has been revised 3.6% downward over the last 30 days.
Aspen Insurance Holdings LimitedAHL is an insurance and reinsurance services provider. The Zacks Consensus Estimate for its current year earnings has been revised 10.8% downward over the last 30 days.
BCB Bancorp, Inc.BCBP is a holding company for BCB Community Bank. The Zacks Consensus Estimate for its current year earnings has been revised 7.5% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Aerojet Rocketdyne Holdings, Inc. (AJRD): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
American Woodmark Corporation (AMWD): Free Stock Analysis Report
Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report
BCB Bancorp, Inc. (NJ) (BCBP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer of air conditioning and heating equipment. Click to get this free report Aerojet Rocketdyne Holdings, Inc. (AJRD): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report American Woodmark Corporation (AMWD): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for its current year earnings has been revised 3.8% downward over the last 30 days.
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Click to get this free report Aerojet Rocketdyne Holdings, Inc. (AJRD): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report American Woodmark Corporation (AMWD): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer of air conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 3.8% downward over the last 30 days.
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Click to get this free report Aerojet Rocketdyne Holdings, Inc. (AJRD): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report American Woodmark Corporation (AMWD): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer of air conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 3.8% downward over the last 30 days.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer of air conditioning and heating equipment. Click to get this free report Aerojet Rocketdyne Holdings, Inc. (AJRD): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report American Woodmark Corporation (AMWD): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP): Free Stock Analysis Report To read this article on Zacks.com click here. View the entire Zacks Rank #5 List .
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10489.0
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2018-05-03 00:00:00 UTC
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AAON Becomes Oversold
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AAON
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https://www.nasdaq.com/articles/aaon-becomes-oversold-2018-05-03
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $31.46 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 38.9. A bullish investor could look at AAON's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares:
Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $40.25 as the 52 week high point - that compares with a last trade of $32.60.
According to the ETF Finder at ETF Channel, AAON makes up 4.86% of the PowerShares Dynamic Building & Construction Portfolio ETF (Symbol: PKB) which is trading lower by about 0.8% on the day Thursday.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $31.46 per share. A bullish investor could look at AAON's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $40.25 as the 52 week high point - that compares with a last trade of $32.60.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $31.46 per share. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $40.25 as the 52 week high point - that compares with a last trade of $32.60. A bullish investor could look at AAON's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $31.46 per share. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $40.25 as the 52 week high point - that compares with a last trade of $32.60. A bullish investor could look at AAON's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $31.46 per share. According to the ETF Finder at ETF Channel, AAON makes up 4.86% of the PowerShares Dynamic Building & Construction Portfolio ETF (Symbol: PKB) which is trading lower by about 0.8% on the day Thursday. A bullish investor could look at AAON's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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10490.0
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2018-04-24 00:00:00 UTC
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Lennox (LII) Beats on Q1 Earnings, Reiterates 2018 Outlook
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AAON
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https://www.nasdaq.com/articles/lennox-lii-beats-on-q1-earnings-reiterates-2018-outlook-2018-04-24
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nan
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nan
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Lennox International, Inc.LII reported better-than-expected results for first-quarter 2018. This stellar performance mainly stemmed from a healthy residential business.
Earnings/Revenues
Quarterly earnings came in at $1.13 per share, outpacing the Zacks Consensus Estimate of $1.08. The bottom line also came in higher than the year-ago tally of 85 cents per share.
Net sales during the reported quarter came in at $834.8 million, comfortably beating the Zacks Consensus Estimate of $815 million. Also, the revenue figure improved 5.2% year over year.
Segmental Details
Residential Heating & Cooling revenues came in at $454 million, up 8% year over year. The upswing primarily stemmed from growth in the replacement business.
Commercial Heating & Cooling revenues came in at $206 million, up 5% year over year. This uptick was backed by growth in the regional and local replacement business.
However, Refrigeration sales dipped 2% year over year to $129 million.
Lennox International, Inc. Price, Consensus and EPS Surprise
Lennox International, Inc. Price, Consensus and EPS Surprise | Lennox International, Inc. Quote
Costs/Margins
Cost of goods sold during the quarter was $611.6 million, up 5% year over year. Adjusted gross profit margin was 26.6%, up 30 basis points (bps) year over year.
Selling, general and administrative expenses during the quarter totaled $155.2 million, up from the $152.4 million reported in the year-ago quarter. Adjusted operating profit margin was 6.7%, down 140 bps year over year.
Balance Sheet/Cash Flow
Exiting the first quarter, the company had cash and cash equivalents of $57.1 million, as against the $68.2 million recorded at the end of 2017. Long-term debt was $1,258.3 million, higher than the $970.5 million reported as of Dec 31, 2017.
In the first three months of 2018, Lennox International used $83.5 million cash in operating activities, as against the $107.6 million cash used in the year-ago period. Capital expenditures during the reported quarter were $23 million, lower than the $25 million incurred in first-quarter 2017.
Outlook
Lennox International intends to boost its near-term competency on the back of ongoing growth-based investments. The company also remains on track to increase shareholders' returns in the near future.
This Zacks Rank #3 (Hold) company projects top-line growth for full-year 2018 at 4-8%, higher than the previous guidance of 3-7%. However, the adjusted earrings guidance has been reiterated at the $9.75-$10.35 per share range for the year.
Stocks to Consider
Some better-ranked stocks in the Zacks Construction sector are listed below:
Comfort Systems USA, Inc. FIX sports a Zacks Rank of 1 (Strong Buy). The company's earnings per share (EPS) are projected to grow 10% in the next three to five years. You can see the complete list of today's Zacks #1 Rank stocks here .
Boise Cascade, L.L.C. BCC also flaunts a Zacks Rank #1. The company's EPS is estimated to be up 6.70%, over the next three to five years.
AAON, Inc. AAON carries a Zacks Rank of 2 (Buy). The company's EPS will likely be up 15% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lennox International, Inc. (LII): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON, Inc. AAON carries a Zacks Rank of 2 (Buy). Click to get this free report Lennox International, Inc. (LII): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report Boise Cascade, L.L.C. Outlook Lennox International intends to boost its near-term competency on the back of ongoing growth-based investments.
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Click to get this free report Lennox International, Inc. (LII): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report Boise Cascade, L.L.C. AAON, Inc. AAON carries a Zacks Rank of 2 (Buy). Lennox International, Inc. Price, Consensus and EPS Surprise Lennox International, Inc. Price, Consensus and EPS Surprise | Lennox International, Inc. Quote Costs/Margins Cost of goods sold during the quarter was $611.6 million, up 5% year over year.
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Click to get this free report Lennox International, Inc. (LII): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report Boise Cascade, L.L.C. AAON, Inc. AAON carries a Zacks Rank of 2 (Buy). Net sales during the reported quarter came in at $834.8 million, comfortably beating the Zacks Consensus Estimate of $815 million.
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Click to get this free report Lennox International, Inc. (LII): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report Boise Cascade, L.L.C. AAON, Inc. AAON carries a Zacks Rank of 2 (Buy). Net sales during the reported quarter came in at $834.8 million, comfortably beating the Zacks Consensus Estimate of $815 million.
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10491.0
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2018-04-17 00:00:00 UTC
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US Retail Rise: ETFs in Focus
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AAON
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https://www.nasdaq.com/articles/us-retail-rise%3A-etfs-in-focus-2018-04-17
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nan
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nan
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U.S. retail sales picked up in March after declining for three straight months, as consumers bought more motor vehicles and other expensive items, reflecting a revival in consumer spending owing to tax cuts and refunds. Eight of 13 major retail categories showed improvement.
Into the Headlines
Overall retail sales increased 0.6% in March, after 0.1% drop in each of the previous three months. Excluding automobiles, gasoline, building materials and food services, core retail sales ticked up 0.4% in March after remaining unchanged in February. Core retail sales are most closely aligned with the consumer spending component of GDP (read: 3 ETFs to Better Prepare for Aggressive Rate Hikes ).
Consumer spending accounts for over two-thirds of the U.S. GDP, which seems to have slowed in 2018. It grew 4.0% year over year in the fourth quarter of 2017 but tepid wage growth in February might have dented purchasing power. However, given the recent positive numbers, analysts believe the U.S. economy is entering the second quarter with great momentum, after a harsh winter marred purchasing power for big-ticket items at the beginning of 2018.
In March, auto sales rose 2.0% after a 1.3% drop in February. Moreover, sales at furniture stores increased 0.7% while electronics and appliances stores witnessed an increase of 0.5%. However, sales at building material stores declined 0.6% in the month while receipts at clothing stores fell 0.8%. Moreover, gas station sales dropped 0.3% in the month, the steepest since July.
Let us now discuss a broad ETF providing exposure to the retail space.
SPDR S&P Retail ETFXRT
This fund focuses on providing exposure to the U.S. retail industry that looks to benefit from improved consumer sentiment. It has AUM of $358.1 million and charges a fee of 35 basis points a year. It has an allocation of 2.0% to Guess Inc GES , 1.6% to Finish Line Inc. Class A FINL and 1.6% to Abercrombie & Fitch Co. Class A ANF . The fund has returned 9.4% in a year. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Let us now discuss a few sector-specific ETFs we touched upon above.
First Trust NASDAQ Global Auto Index FundCARZ
Increased auto sales in March might benefit this ETF. This fund focuses on providing exposure to the global automotive sector, with 20.7% allocated to the United States. It has AUM of $20.9 million and charges a fee of 70 basis points a year. It has an allocation of 8.0% to General Motors GM and 7.5% to Ford F . The fund has returned 23.6% in a year. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
PowerShares Dynamic Building & Construction PortfolioPKB
This fund is a popular ETF focused on providing exposure to the U.S. building and materials construction sector. Weakness in building material stores might negatively impact this ETF.
It has AUM of $297.0 million and charges a fee of 63 basis points a year. The fund's top three holdings are DR Horton Inc DHI , PulteGroup Inc PHM and AAON Inc AAON , with 5.2%, 5.2% and 5.1% allocation, respectively. The fund has returned 9.6% in a year. It has a Zacks ETF Rank #3 with a High risk outlook.
United States Gasoline FundUGA
This fund focuses on providing exposure to a widely used commodity - gasoline. Weakness in gasoline receipts might negatively impact this ETF. It has AUM of $46.2 million and charges a fee of 75 basis points a year. The fund has returned 17.8% in a year.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
PulteGroup, Inc. (PHM): Free Stock Analysis Report
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
SPDR-SP RET ETF (XRT): ETF Research Reports
US GAS FUND LP (UGA): ETF Research Reports
PWRSH-DYN BLDG (PKB): ETF Research Reports
FT-NDQ GL AUTO (CARZ): ETF Research Reports
Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
The Finish Line, Inc. (FINL): Free Stock Analysis Report
Guess?, Inc. (GES): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fund's top three holdings are DR Horton Inc DHI , PulteGroup Inc PHM and AAON Inc AAON , with 5.2%, 5.2% and 5.1% allocation, respectively. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report D.R. Excluding automobiles, gasoline, building materials and food services, core retail sales ticked up 0.4% in March after remaining unchanged in February.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report D.R. The fund's top three holdings are DR Horton Inc DHI , PulteGroup Inc PHM and AAON Inc AAON , with 5.2%, 5.2% and 5.1% allocation, respectively. It has an allocation of 2.0% to Guess Inc GES , 1.6% to Finish Line Inc. Class A FINL and 1.6% to Abercrombie & Fitch Co. Class A ANF .
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report D.R. The fund's top three holdings are DR Horton Inc DHI , PulteGroup Inc PHM and AAON Inc AAON , with 5.2%, 5.2% and 5.1% allocation, respectively. PowerShares Dynamic Building & Construction PortfolioPKB This fund is a popular ETF focused on providing exposure to the U.S. building and materials construction sector.
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Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report D.R. The fund's top three holdings are DR Horton Inc DHI , PulteGroup Inc PHM and AAON Inc AAON , with 5.2%, 5.2% and 5.1% allocation, respectively. SPDR S&P Retail ETFXRT This fund focuses on providing exposure to the U.S. retail industry that looks to benefit from improved consumer sentiment.
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10492.0
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2018-04-12 00:00:00 UTC
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AAON, Inc. (AAON) Sees Hammer Chart Pattern: Time to Buy?
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AAON
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https://www.nasdaq.com/articles/aaon-inc.-aaon-sees-hammer-chart-pattern%3A-time-to-buy-2018-04-12
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nan
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nan
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AAON, Inc.AAON has been struggling lately, but the selling pressure may be coming to an end soon. That is because AAON recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom.
What is a Hammer Chart Pattern?
A hammer chart pattern is a popular technical indicator that is used in candlestick charting. The hammer appears when a stock tumbles during the day, but then finds strength at some point in the session to close near or above its opening price. This forms a candlestick that resembles a hammer, and it can suggest that the market has found a low point in the stock, and that better days are ahead.
Other Factors
Plus, earnings estimates have been rising for this company, even despite the sluggish trading lately. In just the past 60 days alone 1 estimate has gone higher, compared to none lower, while the consensus estimate has also moved in the right direction.
Estimates have actually risen so much that the stock now has a Zacks Rank #2 (Buy) suggesting this relatively unloved stock could be due for a breakout soon. This will be especially true if AAON stock can build momentum from here and find a way to continue higher of off this encouraging trading development. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This will be especially true if AAON stock can build momentum from here and find a way to continue higher of off this encouraging trading development. AAON, Inc.AAON has been struggling lately, but the selling pressure may be coming to an end soon. That is because AAON recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc.AAON has been struggling lately, but the selling pressure may be coming to an end soon. That is because AAON recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom.
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That is because AAON recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom. Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc.AAON has been struggling lately, but the selling pressure may be coming to an end soon.
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That is because AAON recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom. AAON, Inc.AAON has been struggling lately, but the selling pressure may be coming to an end soon. This will be especially true if AAON stock can build momentum from here and find a way to continue higher of off this encouraging trading development.
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10493.0
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2018-04-10 00:00:00 UTC
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Should You Invest in the PowerShares Dynamic Building & Construction Portfolio (PKB)?
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AAON
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https://www.nasdaq.com/articles/should-you-invest-in-the-powershares-dynamic-building-construction-portfolio-pkb-2018-04
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nan
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nan
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Designed to provide broad exposure to the Industrials - Engineering and Construction segment of the U.S. equity market, the PowerShares Dynamic Building & Construction Portfolio (PKB) is a passively managed exchange traded fund launched on 10/26/2005.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Engineering and Construction is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco Powershares. It has amassed assets over $327.01 M, making it one of the average sized ETFs attempting to match the performance of the Industrials - Engineering and Construction segment of the U.S. equity market. PKB seeks to match the performance of the Dynamic Building & Construction Intellidex Index before fees and expenses.
The index is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factorsn.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.63%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.19%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 43.60% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Aaon Inc (AAON) accounts for about 5.71% of total assets, followed by Lennar Corp (LEN) and Pultegroup Inc (PHM).
The top 10 holdings account for about 46.24% of total assets under management.
Performance and Risk
The ETF has lost about -11.04% and 6.62% so far this year and in the past one year (as of 04/10/2018), respectively. PKB has traded between $28.31 and $36.11 during this last 52-week period.
The ETF has a beta of 1.20 and standard deviation of 17.78% for the trailing three-year period, making it a high risk choice in the space. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
PowerShares Dynamic Building & Construction Portfolio carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PKB is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
SPDR S&P Homebuilders ETF (XHB) tracks S&P Homebuilders Select Industry Index and the iShares U.S. Home Construction ETF (ITB) tracks Dow Jones U.S. Select Home Construction Index. SPDR S&P Homebuilders ETF has $906.75 M in assets, iShares U.S. Home Construction ETF has $1.71 B. XHB has an expense ratio of 0.35% and ITB charges 0.44%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAON, Inc. (AAON): Free Stock Analysis Report
PulteGroup, Inc. (PHM): Free Stock Analysis Report
Lennar Corporation (LEN): Free Stock Analysis Report
SPDR-SP HOMEBLD (XHB): ETF Research Reports
ISHARS-US HO CO (ITB): ETF Research Reports
PWRSH-DYN BLDG (PKB): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Aaon Inc (AAON) accounts for about 5.71% of total assets, followed by Lennar Corp (LEN) and Pultegroup Inc (PHM). Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report SPDR-SP HOMEBLD (XHB): ETF Research Reports ISHARS-US HO CO (ITB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $327.01 M, making it one of the average sized ETFs attempting to match the performance of the Industrials - Engineering and Construction segment of the U.S. equity market.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report SPDR-SP HOMEBLD (XHB): ETF Research Reports ISHARS-US HO CO (ITB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Aaon Inc (AAON) accounts for about 5.71% of total assets, followed by Lennar Corp (LEN) and Pultegroup Inc (PHM). Designed to provide broad exposure to the Industrials - Engineering and Construction segment of the U.S. equity market, the PowerShares Dynamic Building & Construction Portfolio (PKB) is a passively managed exchange traded fund launched on 10/26/2005.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report SPDR-SP HOMEBLD (XHB): ETF Research Reports ISHARS-US HO CO (ITB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Aaon Inc (AAON) accounts for about 5.71% of total assets, followed by Lennar Corp (LEN) and Pultegroup Inc (PHM). Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing.
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Looking at individual holdings, Aaon Inc (AAON) accounts for about 5.71% of total assets, followed by Lennar Corp (LEN) and Pultegroup Inc (PHM). Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report SPDR-SP HOMEBLD (XHB): ETF Research Reports ISHARS-US HO CO (ITB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Industrials - Engineering and Construction segment of the U.S. equity market, the PowerShares Dynamic Building & Construction Portfolio (PKB) is a passively managed exchange traded fund launched on 10/26/2005.
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10494.0
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2018-04-09 00:00:00 UTC
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The Math Shows DGRO Can Go To $39
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AAON
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https://www.nasdaq.com/articles/math-shows-dgro-can-go-39-2018-04-09
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Core Dividend Growth ETF (Symbol: DGRO), we found that the implied analyst target price for the ETF based upon its underlying holdings is $38.67 per unit.
With DGRO trading at a recent price near $33.48 per unit, that means that analysts see 15.51% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DGRO's underlying holdings with notable upside to their analyst target prices are Matthews International Corp (Symbol: MATW), Analog Devices Inc (Symbol: ADI), and AAON, Inc. (Symbol: AAON). Although MATW has traded at a recent price of $50.20/share, the average analyst target is 83.27% higher at $92.00/share. Similarly, ADI has 17.26% upside from the recent share price of $88.41 if the average analyst target price of $103.67/share is reached, and analysts on average are expecting AAON to reach a target price of $40.00/share, which is 16.96% above the recent price of $34.20. Below is a twelve month price history chart comparing the stock performance of MATW, ADI, and AAON:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of MATW, ADI, and AAON: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DGRO's underlying holdings with notable upside to their analyst target prices are Matthews International Corp (Symbol: MATW), Analog Devices Inc (Symbol: ADI), and AAON, Inc. (Symbol: AAON). Similarly, ADI has 17.26% upside from the recent share price of $88.41 if the average analyst target price of $103.67/share is reached, and analysts on average are expecting AAON to reach a target price of $40.00/share, which is 16.96% above the recent price of $34.20.
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Similarly, ADI has 17.26% upside from the recent share price of $88.41 if the average analyst target price of $103.67/share is reached, and analysts on average are expecting AAON to reach a target price of $40.00/share, which is 16.96% above the recent price of $34.20. Three of DGRO's underlying holdings with notable upside to their analyst target prices are Matthews International Corp (Symbol: MATW), Analog Devices Inc (Symbol: ADI), and AAON, Inc. (Symbol: AAON). Below is a twelve month price history chart comparing the stock performance of MATW, ADI, and AAON: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, ADI has 17.26% upside from the recent share price of $88.41 if the average analyst target price of $103.67/share is reached, and analysts on average are expecting AAON to reach a target price of $40.00/share, which is 16.96% above the recent price of $34.20. Below is a twelve month price history chart comparing the stock performance of MATW, ADI, and AAON: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DGRO's underlying holdings with notable upside to their analyst target prices are Matthews International Corp (Symbol: MATW), Analog Devices Inc (Symbol: ADI), and AAON, Inc. (Symbol: AAON).
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Similarly, ADI has 17.26% upside from the recent share price of $88.41 if the average analyst target price of $103.67/share is reached, and analysts on average are expecting AAON to reach a target price of $40.00/share, which is 16.96% above the recent price of $34.20. Three of DGRO's underlying holdings with notable upside to their analyst target prices are Matthews International Corp (Symbol: MATW), Analog Devices Inc (Symbol: ADI), and AAON, Inc. (Symbol: AAON). Below is a twelve month price history chart comparing the stock performance of MATW, ADI, and AAON: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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10495.0
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2018-03-15 00:00:00 UTC
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US Retail Sales Fall for 3 Straight Months: ETFs in Focus
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AAON
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https://www.nasdaq.com/articles/us-retail-sales-fall-3-straight-months-etfs-focus-2018-03-15
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nan
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nan
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U.S. retail sales declined for the third straight month in February, as consumers cut back on purchases of motor vehicles and other expensive items, indicating a potential drop in GDP in the first quarter. Out of the 13 major sectors, seven reported declines (read: Will Wall Street Hit the Brakes in 2019? ETFs to Play ).
Retail sales data is going to play along with the market's expectations of the previously expected three rate hikes in 2018, after muted inflation data reported earlier this week alleviated fears of more aggressive rate hikes by the Fed. Consumer prices increased 2.2% year over year in February, up from 2.1% reported in the previous month.
Into the Headlines
Overall retail sales declined 0.1% in February compared with expectations of a gain of 0.3% after 0.1% drop in the prior month and December. This was the first time since April 2012 that retail sales have declined for three consecutive months. Excluding automobiles, gasoline, building materials and food services, core retail sales increased 0.1% in February after staying unchanged in January. Core retail sales are most closely aligned with the consumer spending component of GDP (read: 3 ETFs to Benefit as Faster Rate Hike Worries Cool Down ).
Consumer spending accounts for over two-thirds of the United States' GDP and seems to have slowed in 2018. It grew 3.8% year over year in the fourth quarter of 2017 but tepid wage growth in February might have dented purchasing power. Average hourly earnings in the United States inched up 0.1% in February compared with 0.3% in the previous month.
In February, auto sales declined 0.9%, after a similar drop in January, and receipts at gasoline stations declined 1.2%. However, sales at building material stores increased 1.9% in the month while receipts at clothing stores gained 0.4% and sales at online retailers rose 1.0%.
Let us now discuss a few ETFs focused on providing exposure to the sectors impacted.
First Trust NASDAQ Global Auto Index FundCARZ
This fund focuses on providing exposure to the global automotive sector. A drop in auto sales in February might impact this ETF. It has AUM of $20.9 million and charges a fee of 70 basis points a year. The fund has a 20.0% allocation to the United States. It has an allocation of 8.3% to Toyota, 8.2% to Honda and 8.1% to Daimler AG. The fund has returned 16.5% in a year. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
PowerShares Dynamic Building & Construction PortfolioPKB
This fund is a popular ETF focused on providing exposure to the U.S. building and materials construction sector. Strength in building material stores might lead to gains in this ETF.
It has AUM of $317.5 billion and charges a fee of 63 basis points a year. The fund's top three holdings are AAON Inc AAON , PulteGroup Inc PHM and Lennar Corp LEN , with 5.6%, 5.2% and 5.2% allocation, respectively. The fund has returned 8.9% in a year. It has a Zacks ETF Rank #3 with a High risk outlook.
United States Gasoline FundUGA
This fund focuses on providing exposure to a widely used commodity, gasoline. Weakness in gasoline receipts might negatively impact this ETF. It has AUM of $44.8 million and charges a fee of 75 basis points a year. The fund has returned 19.9% in a year.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAON, Inc. (AAON): Free Stock Analysis Report
PulteGroup, Inc. (PHM): Free Stock Analysis Report
Lennar Corporation (LEN): Free Stock Analysis Report
US GAS FUND LP (UGA): ETF Research Reports
PWRSH-DYN BLDG (PKB): ETF Research Reports
FT-NDQ GL AUTO (CARZ): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fund's top three holdings are AAON Inc AAON , PulteGroup Inc PHM and Lennar Corp LEN , with 5.6%, 5.2% and 5.2% allocation, respectively. Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report US GAS FUND LP (UGA): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports To read this article on Zacks.com click here. U.S. retail sales declined for the third straight month in February, as consumers cut back on purchases of motor vehicles and other expensive items, indicating a potential drop in GDP in the first quarter.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report US GAS FUND LP (UGA): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports To read this article on Zacks.com click here. The fund's top three holdings are AAON Inc AAON , PulteGroup Inc PHM and Lennar Corp LEN , with 5.6%, 5.2% and 5.2% allocation, respectively. However, sales at building material stores increased 1.9% in the month while receipts at clothing stores gained 0.4% and sales at online retailers rose 1.0%.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report US GAS FUND LP (UGA): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports To read this article on Zacks.com click here. The fund's top three holdings are AAON Inc AAON , PulteGroup Inc PHM and Lennar Corp LEN , with 5.6%, 5.2% and 5.2% allocation, respectively. Consumer prices increased 2.2% year over year in February, up from 2.1% reported in the previous month.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report US GAS FUND LP (UGA): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports To read this article on Zacks.com click here. The fund's top three holdings are AAON Inc AAON , PulteGroup Inc PHM and Lennar Corp LEN , with 5.6%, 5.2% and 5.2% allocation, respectively. Consumer prices increased 2.2% year over year in February, up from 2.1% reported in the previous month.
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10496.0
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2018-02-08 00:00:00 UTC
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AAON Enters Oversold Territory
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AAON
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https://www.nasdaq.com/articles/aaon-enters-oversold-territory-2018-02-08
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $33.25 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 34.8. A bullish investor could look at AAON's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares:
Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $38.25 as the 52 week high point - that compares with a last trade of $33.50.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $33.25 per share. A bullish investor could look at AAON's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $38.25 as the 52 week high point - that compares with a last trade of $33.50.
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The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $38.25 as the 52 week high point - that compares with a last trade of $33.50. In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $33.25 per share. A bullish investor could look at AAON's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $33.25 per share. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $38.25 as the 52 week high point - that compares with a last trade of $33.50. A bullish investor could look at AAON's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of AAON, Inc. (Symbol: AAON) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $33.25 per share. A bullish investor could look at AAON's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAON shares: Looking at the chart above, AAON's low point in its 52 week range is $29.95 per share, with $38.25 as the 52 week high point - that compares with a last trade of $33.50.
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10497.0
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2017-11-28 00:00:00 UTC
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AAON, Inc. (AAON) Ex-Dividend Date Scheduled for November 29, 2017
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AAON
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https://www.nasdaq.com/articles/aaon-inc-aaon-ex-dividend-date-scheduled-november-29-2017-2017-11-28
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nan
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nan
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AAON, Inc. ( AAON ) will begin trading ex-dividend on November 29, 2017. A cash dividend payment of $0.13 per share is scheduled to be paid on December 21, 2017. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAON has paid the same dividend.
The previous trading day's last sale of AAON was $35.2, representing a -7.85% decrease from the 52 week high of $38.20 and a 17.53% increase over the 52 week low of $29.95.
AAON is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. ( ASML ) and Thermo Fisher Scientific Inc ( TMO ). AAON's current earnings per share, an indicator of a company's profitability, is $.94. Zacks Investment Research reports AAON's forecasted earnings growth in 2017 as -3%, compared to an industry average of 5.8%.
For more information on the declaration, record and payment dates, visit the AAON Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports AAON's forecasted earnings growth in 2017 as -3%, compared to an industry average of 5.8%. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AAON, Inc. ( AAON ) will begin trading ex-dividend on November 29, 2017.
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AAON, Inc. ( AAON ) will begin trading ex-dividend on November 29, 2017. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAON Dividend History page.
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AAON, Inc. ( AAON ) will begin trading ex-dividend on November 29, 2017. Shareholders who purchased AAON prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAON has paid the same dividend.
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10498.0
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2017-11-16 00:00:00 UTC
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New Strong Sell Stocks for November 16th
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AAON
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-november-16th-2017-11-16
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
AAON, Inc.AAON is a manufacturer and seller of air conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 4.9% downward over the last 30 days.
Aceto CorporationACET is a seller and distributor of finished dosage form generic and pharmaceutical products. The Zacks Consensus Estimate for its current year earnings has been revised 10.7% downward over the last 30 days.
Addus HomeCare CorporationADUS is a provider of personal care services to older adults and younger disabled persons. The Zacks Consensus Estimate for its current year earnings has been revised 1.3% downward over the last 30 days.
Atlas Air Worldwide Holdings, Inc. AAWW is a provider of outsourced aircraft and aviation operating services. The Zacks Consensus Estimate for its current year earnings has been revised 3.9% downward over the last 30 days.
Avianca Holdings S.A.AVH is a provider of air transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 3.1% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAON, Inc. (AAON): Free Stock Analysis Report
Aceto Corporation (ACET): Free Stock Analysis Report
Addus HomeCare Corporation (ADUS): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report
Avianca Holdings S.A. (AVH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer and seller of air conditioning and heating equipment. Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report Addus HomeCare Corporation (ADUS): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Avianca Holdings S.A. (AVH): Free Stock Analysis Report To read this article on Zacks.com click here. Aceto CorporationACET is a seller and distributor of finished dosage form generic and pharmaceutical products.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report Addus HomeCare Corporation (ADUS): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Avianca Holdings S.A. (AVH): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer and seller of air conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 4.9% downward over the last 30 days.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report Addus HomeCare Corporation (ADUS): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Avianca Holdings S.A. (AVH): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer and seller of air conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 4.9% downward over the last 30 days.
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Click to get this free report AAON, Inc. (AAON): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report Addus HomeCare Corporation (ADUS): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report Avianca Holdings S.A. (AVH): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: AAON, Inc.AAON is a manufacturer and seller of air conditioning and heating equipment. Avianca Holdings S.A.AVH is a provider of air transportation services.
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10499.0
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2017-11-06 00:00:00 UTC
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New Strong Sell Stocks for November 6th
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AAON
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-november-6th-2017-11-06
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
3D Systems CorporationDDD is a global provider of 3D printing products and services. The Zacks Consensus Estimate for its current year earnings has been revised 93.2% downward over the last 30 days.
AAON, Inc.AAON is a manufacturer of air-conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 4.9% downward over the last 30 days.
Qorvo, Inc.QRVO is a provider of radio frequency solutions and technologies for mobile device and defense and aerospace applications globally. The Zacks Consensus Estimate for its current year earnings has been revised 1.4% downward over the last 30 days.
Papa John's International, Inc.PZZA is an operator and franchisor of pizza delivery and carryout restaurants. The Zacks Consensus Estimate for its current year earnings has been revised 1.8% downward over the last 30 days.
Lydall, Inc.LDL is a designer and marketer of specialty engineered filtration media and industrial thermal insulating solutions. The Zacks Consensus Estimate for its current year earnings has been revised 5.5% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
3D Systems Corporation (DDD): Free Stock Analysis Report
Qorvo, Inc. (QRVO): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
Lydall, Inc. (LDL): Free Stock Analysis Report
Papa John's International, Inc. (PZZA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAON, Inc.AAON is a manufacturer of air-conditioning and heating equipment. Click to get this free report 3D Systems Corporation (DDD): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Lydall, Inc. (LDL): Free Stock Analysis Report Papa John's International, Inc. (PZZA): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: 3D Systems CorporationDDD is a global provider of 3D printing products and services.
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Click to get this free report 3D Systems Corporation (DDD): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Lydall, Inc. (LDL): Free Stock Analysis Report Papa John's International, Inc. (PZZA): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc.AAON is a manufacturer of air-conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 93.2% downward over the last 30 days.
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Click to get this free report 3D Systems Corporation (DDD): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Lydall, Inc. (LDL): Free Stock Analysis Report Papa John's International, Inc. (PZZA): Free Stock Analysis Report To read this article on Zacks.com click here. AAON, Inc.AAON is a manufacturer of air-conditioning and heating equipment. The Zacks Consensus Estimate for its current year earnings has been revised 93.2% downward over the last 30 days.
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AAON, Inc.AAON is a manufacturer of air-conditioning and heating equipment. Click to get this free report 3D Systems Corporation (DDD): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report Lydall, Inc. (LDL): Free Stock Analysis Report Papa John's International, Inc. (PZZA): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: 3D Systems CorporationDDD is a global provider of 3D printing products and services.
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