On Jun 25, we issued an updated research report on A. O. Smith Corporation AOS.In the past three months, this Zacks Rank #3 (Hold) stock has gained 21% compared with the industry’s growth of 17.4%. Existing Business ScenarioA. O. Smith's replacement market, which accounts for approximately 85% of the North American water heater and boiler volumes, will likely act as a long-term growth driver. Solid demand for water-heating and water-treatment products in the United States coupled with improvement in the effectiveness of the company’s direct-to-consumer channel is likely to continue driving revenues of the company’s North America segment. Also, its focus on investments in product developments, automation and production efficiency will likely be beneficial, going forward.Also, the company’s acquisition of Water-Right (completed in April 2019) has been enhancing its growth opportunities in the water treatment industry, especially in the wholesale and independent dealer array. For instance, the buyout contributed $14 million and $16 million to sales in the fourth quarter of 2019 and the first quarter of 2020, respectively. In addition, its strong liquidity position adds to its strength. Notably, at the end of first-quarter 2020, the company’s cash and cash equivalents increased 11.3% on a sequential basis to $416.1 million. Also, for the first three months of 2020, its cash flow from operations totaled $54.1 million, up 150% from the year-ago comparable period.In addition, it remains committed toward rewarding its shareholders via repurchases and dividend payouts. It is worth mentioning here that although there is no change to its dividend plans, its share-buyback activities have been temporarily halted due to the coronavirus crisis.However, persistent soft demand in end markets in China on account of the coronavirus outbreak remains concerning. Also, the company is witnessing low order rates for residential water heaters, particularly in North America. In April, its orders recorded a decline in low-single digits on an average basis compared with the average order rate in the first quarter. Moreover, in the same month, the commercial water heater order rates in North America declined 30-35%. In addition, weak end markets in India amid the pandemic remains concerning.Apart from this, the company’s high capital expenditure might negatively impact its short-term liquidity. For 2020, it expects to incur a capital expenditure of $60-70 million. Also, on a P/E (TTM) basis, the stock looks a bit overvalued compared with the industry, with respective tallies of 22.33x and 18.12x. Notably, the company's multiple is higher than the industry's three-month highest level of 18.12x.Stocks to ConsiderSome better-ranked stocks from the Zacks Industrial Products sector are Intellicheck, Inc. IDN, Energy Recovery, Inc. ERII and Broadwind Energy Inc. BWEN. All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Intellicheck delivered a positive earnings surprise of 70.24%, on average, in the trailing four quarters.Energy Recovery delivered a positive earnings surprise of 66.67%, on average, in the trailing four quarters.Broadwind delivered a positive earnings surprise of 50.00%, on average, in the trailing four quarters.5 Stocks Set to DoubleEach was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.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 A. O. Smith Corporation (AOS): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report Broadwind Energy, Inc. (BWEN): Free Stock Analysis Report Intellicheck Mobilisa, Inc. (IDN): Free Stock Analysis Report To read this article on Zacks.com click here.