Watsco (WSO) Stock Price, News & Analysis

Company Overview

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.

Key Stats

• Today's Range: $490.39 to $513.48
• 50-Day Range: $464.98 to $530.16
• 52-Week Range: $396.82 to $571.42
• Volume: 297,216 shs
• Average Volume: 252,740 shs
• Market Capitalization: $20.59 billion
• P/E Ratio: 38.45
• Dividend Yield: 2.12%
• Price Target: $486.25
• Consensus Rating: Hold

Watsco Stock Analysis - MarketRank™

Watsco scored higher than 67% of companies evaluated by MarketBeat, and ranked 68th out of 104 stocks in the construction sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.2 / 5
• Analyst Rating: Hold

Consensus Rating

Watsco has received a consensus rating of Hold. The company's average rating score is 2.33, and is based on 2 buy ratings, 4 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Watsco has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 9.78%

Earnings Growth

Earnings for Watsco are expected to grow by 9.78% in the coming year, from $14.62 to $16.05 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Watsco is 38.36, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 22.45.

Price to Earnings Ratio vs. Sector

The P/E ratio of Watsco is 38.36, which means that it is trading at a more expensive P/E ratio than the Construction sector average P/E ratio of about 15.58.

Price to Book Value per Share Ratio

Watsco has a P/B Ratio of 6.70. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 1.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

6.96% of the float of Watsco has been sold short.

Short Interest Ratio / Days to Cover

Watsco has a short interest ratio ("days to cover") of 9.3.

Change versus previous month

Short interest in Watsco has recently increased by 1.24%, indicating that investor sentiment is decreasing.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

Watsco pays a meaningful dividend of 2.10%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Watsco has been increasing its dividend for 12 years.

Dividend Coverage

The dividend payout ratio of Watsco is 81.51%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on earnings estimates, Watsco will have a dividend payout ratio of 67.29% next year. This indicates that Watsco will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.2 / 5
• Environmental Score: -2.77

Percentage of Shares Shorted

6.96% of the float of Watsco has been sold short.

Short Interest Ratio / Days to Cover

Watsco has a short interest ratio ("days to cover") of 9.3.

Change versus previous month

Short interest in Watsco has recently increased by 1.24%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 4.1 / 5
• News Sentiment: 1.39

News Sentiment

Watsco has a news sentiment score of 1.39. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 1.05 average news sentiment score of Construction companies.

News Coverage This Week

MarketBeat has tracked 16 news articles for Watsco this week, compared to 9 articles on an average week.

Search Interest

1 people have searched for WSO on MarketBeat in the last 30 days.

MarketBeat Follows

8 people have added Watsco to their MarketBeat watchlist in the last 30 days. This is an increase of 33% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Watsco insiders have not sold or bought any company stock.

Percentage Held by Insiders

12.86% of the stock of Watsco is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

89.71% of the stock of Watsco is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

WSO Stock Analysis - Frequently Asked Questions

How have WSO shares performed this year?

Watsco's stock was trading at $473.89 at the beginning of the year. Since then, WSO shares have increased by 7.2% and is now trading at $508.2130.
View the best growth stocks for 2025 here.

How were Watsco's earnings last quarter?

Watsco, Inc. (NYSE:WSO) released its earnings results on Tuesday, February, 18th. The construction company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.13 by $0.24. The construction company had revenue of $1.75 billion for the quarter, compared to the consensus estimate of $1.67 billion. Watsco had a net margin of 7.04% and a trailing twelve-month return on equity of 17.59%.

Who are Watsco's major shareholders?

Watsco's top institutional shareholders include Vanguard Group Inc. (8.96%), FMR LLC (8.60%), Kayne Anderson Rudnick Investment Management LLC (3.84%) and Charles Schwab Investment Management Inc. (3.40%). Insiders that own company stock include John Alexander Macdonald, Cesar L Alvarez and Barry S Logan.
View institutional ownership trends.

How do I buy shares of Watsco?

Shares of WSO stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Watsco own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Watsco investors own include Humana (HUM), American Water Works (AWK), Waste Connections (WCN), Voyager Therapeutics (VYGR), The RMR Group (RMR), DiamondRock Hospitality (DRH) and AUO (AUOTY).

Company Calendar

• Record date for 1/31 Dividend: 1/17/2025
• Ex-Dividend for 1/31 Dividend: 1/17/2025
• Dividend Payable: 1/31/2025
• Last Earnings: 2/18/2025
• Today: 3/31/2025
• Next Earnings (Estimated): 4/23/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Construction
• Industry: Hardware, & plumbing & heating equipment & supplies
• Sub-Industry: Trading Companies & Distributors
• Current Symbol: NYSE:WSO
• CIK: 105016
• Web: www.watsco.com
• Phone: (305) 714-4100
• Fax: 305-858-4492
• Employees: 7,280
• Year Founded: 1945

Price Target and Rating

• Average Stock Price Target: $486.25
• High Stock Price Target: $560.00
• Low Stock Price Target: $425.00
• Potential Upside/Downside: -4.6%
• Consensus Rating: Hold
• Rating Score (0-4): 2.33
• Research Coverage: 6 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $13.25
• Trailing P/E Ratio: 38.45
• Forward P/E Ratio: 34.85
• P/E Growth: N/A
• Net Income: $536.34 million
• Net Margins: 7.04%
• Pretax Margin: 10.54%
• Return on Equity: 17.59%
• Return on Assets: 12.09%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 3.13
• Quick Ratio: 1.65

Sales & Book Value

• Annual Sales: $7.62 billion
• Price / Sales: 2.70
• Cash Flow: $14.13 per share
• Price / Cash Flow: 36.05
• Book Value: $75.88 per share
• Price / Book: 6.71

Miscellaneous

• Outstanding Shares: 40,405,000
• Free Float: 35,189,000
• Market Cap: $20.59 billion
• Optionable: Optionable
• Beta: 0.92