Did This Epic Growth Stock's Next $1 Billion Opportunity Just Open Up?

You may think any business built around water heaters is destined to be pretty boring (and you may be right), but A.O. Smith (NYSE: AOS) doesn't care much for flair. You may not either after considering the stock has easily outpaced the returns of Amazon and Apple since focusing all of its bandwidth on core opportunities in 2011.

The company has achieved its impressive growth on the backs of the quickly growing ranks of China's middle class. That's because one of the first purchases made by a household with newly disposable income is a quality water heater. Turns out, people like the luxury of warm water. And unlike the North American market, which is supported almost entirely by replacing old water heaters, many households in China are purchasing their first systems. Ever.

While China is poised to become a $1 billion market for A.O. Smith in the next few years thanks to continued growth of the middle class, management thinks another country could represent a long-term opportunity as large as China -- and one of the biggest barriers to growth was just removed.

Source: Fool.com