AAON Partners With DOE for Heat Pump Accelerator Program

AAON, Inc. AAON collaborates with the Department of Energy (“DOE”) for the Better Buildings Commercial Building Heat Pump Accelerator, with its tenure expected between 2024 and 2027.

Under DOE’s Accelerator program, AAON will lead the production process through its high-performance and efficient Alpha Class air-source heat pumps. The Accelerator in discussion will partner with industry stakeholders to quicken the development and the adoption of cold-climate commercial heat pump rooftop units. This will result in integrated energy efficiency and electrification of buildings.

The company’s efforts to offer sustainable and economic solutions with Alpha Class are also visible in its refrigerant transition strategy. With the adoption of R-454B in place of 410A refrigerant ahead of the EPA's mandates, AAON demonstrates its commitment to sustainability and innovation.

AAON shares declined 3.6% during the trading hours but inched up 0.02% in the after-hours trading session on Apr 9.

Productivity Initiatives Bode Well

The company is following several ways to improve its productivity and foster its growth prospects. It intently focuses on enhancing its operational efficiencies, investments in innovation, and pricing strategies to aid its productivity levels and cater to its customer demands.

Focusing on the innovation aspect of the productivity initiatives, on Oct 18, 2023, AAON introduced its advanced lineup of high-performance air-source heat pumps, AAON Alpha Class. The Alpha Class sets a new commercial and industrial air-source heat pump performance standard. It accelerates the adoption of cleaner, more efficient technology, driving the decarbonization movement.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Shares of this heating, ventilation and air conditioning equipment manufacturer rose 51.7% in the past six months, outperforming the Zacks Building Products - Air Conditioner and Heating industry’s 27.6% growth. Thanks to the improved productivity, the company is optimistic for 2024 and beyond on the back of increasing bookings and growing backlog levels.

Zacks Rank & Key Picks

AAON currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

Armstrong World Industries, Inc. AWI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AWI delivered a trailing four-quarter earnings surprise of 13.1%, on average. The stock has surged 71.4% in the past year. The Zacks Consensus Estimate for AWI’s 2024 sales and earnings per share (EPS) indicates growth of 4.1% and 7.9%, respectively, from the prior-year reported levels.

Vulcan Materials Company VMC presently flaunts a Zacks Rank of 1. VMC delivered a trailing four-quarter earnings surprise of 19.5%, on average. The stock has jumped 59.4% in the past year.

The Zacks Consensus Estimate for VMC’s 2024 sales and EPS indicates improvements of 1.3% and 19.7%, respectively, from that reported a year ago.

Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 20.4%, on average. STRL shares have surged 199.6% in the past year.

The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates increases of 11.7% and 11.4%, respectively, from the prior-year reported levels.

Free Report – The Bitcoin Profit Phenomenon

Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.

No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.

Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.

Download Now – Today It’s 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

Vulcan Materials Company (VMC) : Free Stock Analysis Report

Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report

AAON, Inc. (AAON) : Free Stock Analysis Report

Sterling Infrastructure, Inc. (STRL) : 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.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.