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: $481.00 to $491.82
• 50-Day Range: $466.53 to $568.51
• 52-Week Range: $373.33 to $571.41
• Volume: 623,078 shs
• Average Volume: 277,212 shs
• Market Capitalization: $19.56 billion
• P/E Ratio: 37.43
• Dividend Yield: 2.23%
• Price Target: $488.33
• Consensus Rating: Moderate Buy

Watsco Stock Analysis - MarketRank™

Watsco scored higher than 74% of companies evaluated by MarketBeat, and ranked 61st out of 100 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: 1.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Watsco has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 2 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Watsco has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 11.10%

Earnings Growth

Earnings for Watsco are expected to grow by 11.10% in the coming year, from $13.06 to $14.51 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Watsco is 37.43, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 112.76.

Price to Earnings Ratio vs. Sector

The P/E ratio of Watsco is 37.43, which means that it is trading at a more expensive P/E ratio than the Construction sector average P/E ratio of about 27.83.

Price to Book Value per Share Ratio

Watsco has a P/B Ratio of 7.29. 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

6.12% of the outstanding shares of Watsco have been sold short.

Short Interest Ratio / Days to Cover

Watsco has a short interest ratio ("days to cover") of 11.5, which indicates bearish sentiment.

Change versus previous month

Short interest in Watsco has recently decreased by 2.37%, indicating that investor sentiment is improving.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

Watsco pays a meaningful dividend of 2.12%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Watsco has been increasing its dividend for 11 years.

Dividend Coverage

The dividend payout ratio of Watsco is 83.46%. 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 74.43% 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

6.12% of the outstanding shares of Watsco have been sold short.

Short Interest Ratio / Days to Cover

Watsco has a short interest ratio ("days to cover") of 11.5, which indicates bearish sentiment.

Change versus previous month

Short interest in Watsco has recently decreased by 2.37%, indicating that investor sentiment is improving.

News and Social Media

• Score: 2.9 / 5
• News Sentiment: 1.28

News Sentiment

Watsco has a news sentiment score of 1.28. 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 0.79 average news sentiment score of Construction companies.

News Coverage This Week

MarketBeat has tracked 6 news articles for Watsco this week, compared to 8 articles on an average week.

Search Interest

4 people have searched for WSO on MarketBeat in the last 30 days. This is an increase of 33% compared to the previous 30 days.

MarketBeat Follows

Only 1 people have added Watsco to their MarketBeat watchlist in the last 30 days. This is a decrease of -67% compared to the previous 30 days.

Company Ownership

• Score: 3.3 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Watsco insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $5,589,294.00 in 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 $428.47 on January 1st, 2024. Since then, WSO shares have increased by 13.0% and is now trading at $484.33.
View the best growth stocks for 2024 here.

How were Watsco's earnings last quarter?

Watsco, Inc. (NYSE:WSO) released its quarterly earnings data on Wednesday, October, 23rd. The construction company reported $4.22 earnings per share for the quarter, missing the consensus estimate of $4.73 by $0.51. The company's revenue was up 1.6% compared to the same quarter last year.

Who are Watsco's major shareholders?

Watsco's top institutional shareholders include FMR LLC (8.98%), Charles Schwab Investment Management Inc. (3.10%), Baillie Gifford & Co. (3.06%) and State Street Corp (2.91%). Insiders that own company stock include John Alexander Macdonald, Cesar L Alvarez, Brian E Keeley 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.
Compare Top Brokerages Here.

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

• Ex-Dividend for 10/31 Dividend: 10/16/2024
• Last Earnings: 10/23/2024
• Dividend Payable: 10/31/2024
• Today: 12/22/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Construction
• Industry: Hardware, & plumbing & heating equipment & supplies
• Sub-Industry: Trading Companies & Distributors
• Current Symbol: NYSE:WSO
• CUSIP: 94262220
• CIK: 105016
• Web: www.watsco.com
• Phone: (305) 714-4100
• Fax: 305-858-4492
• Employees: 7,425
• Year Founded: 1945

Price Target and Rating

• Average Stock Price Target: $488.33
• High Stock Price Target: $540.00
• Low Stock Price Target: $425.00
• Potential Upside/Downside: +0.8%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 4 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $12.94
• Trailing P/E Ratio: 37.43
• Forward P/E Ratio: 37.08
• P/E Growth: N/A
• Net Income: $536.34 million
• Net Margins: 6.99%
• Pretax Margin: 10.29%
• Return on Equity: 17.77%
• Return on Assets: 12.28%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 3.36
• Quick Ratio: 1.65

Sales & Book Value

• Annual Sales: $7.47 billion
• Price / Sales: 2.62
• Cash Flow: $13.78 per share
• Price / Cash Flow: 35.14
• Book Value: $66.41 per share
• Price / Book: 7.29

Miscellaneous

• Outstanding Shares: 40,382,000
• Free Float: 35,189,000
• Market Cap: $19.56 billion
• Optionable: Optionable
• Beta: 0.92