Watsco (NYSE:WSO) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Watsco from "sell" to "hold"; the consensus remains a Hold (one Buy, eight Hold) with an average analyst target of $399.83.
• Shares trade around $429.56 (52‑week range $323.05–$496.25), so the stock is currently above analysts' average target; market cap is $17.44 billion with a P/E of 35.65.
• Q1 results beat expectations: EPS $1.87 vs. $1.73 expected and revenue $1.53B vs. $1.49B, though revenue rose just 0.1% year‑over‑year.

Watsco (NYSE:WSO - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday.

A number of other research analysts have also issued reports on the stock. Zacks Research upgraded shares of Watsco from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 25th. JPMorgan Chase & Co. boosted their price target on shares of Watsco from $370.00 to $400.00 and gave the stock a "neutral" rating in a research note on Thursday, February 19th. Mizuho set a $425.00 price target on shares of Watsco in a research note on Wednesday, February 18th. UBS Group initiated coverage on shares of Watsco in a research note on Monday, January 5th. They set a "neutral" rating and a $370.00 price target on the stock. Finally, Stephens boosted their price target on shares of Watsco from $475.00 to $485.00 and gave the stock an "overweight" rating in a research note on Wednesday. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Watsco currently has an average rating of "Hold" and an average target price of $399.83.

Watsco Stock Down 1.9%

Shares of Watsco stock opened at $429.56 on Friday. Watsco has a 52-week low of $323.05 and a 52-week high of $496.25. The company's 50-day simple moving average is $398.25 and its 200-day simple moving average is $376.93. The firm has a market cap of $17.44 billion, a price-to-earnings ratio of 35.65 and a beta of 1.12.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.73 by $0.14. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same period in the previous year, the business posted $1.93 earnings per share. The business's revenue was up .1% compared to the same quarter last year. Equities research analysts anticipate that Watsco will post 12.62 EPS for the current year.

Institutional Trading of Watsco

A number of institutional investors have recently added to or reduced their stakes in the stock. Truist Financial Corp lifted its holdings in shares of Watsco by 89.2% in the third quarter. Truist Financial Corp now owns 37,808 shares of the construction company's stock valued at $15,286,000 after purchasing an additional 17,820 shares in the last quarter. Donaldson Capital Management LLC lifted its holdings in shares of Watsco by 47.7% in the third quarter. Donaldson Capital Management LLC now owns 124,789 shares of the construction company's stock valued at $50,452,000 after purchasing an additional 40,326 shares in the last quarter. Federated Hermes Inc. lifted its holdings in shares of Watsco by 577.9% in the third quarter. Federated Hermes Inc. now owns 19,957 shares of the construction company's stock valued at $8,069,000 after purchasing an additional 17,013 shares in the last quarter. Allianz Asset Management GmbH lifted its holdings in shares of Watsco by 237.5% in the third quarter. Allianz Asset Management GmbH now owns 5,629 shares of the construction company's stock valued at $2,276,000 after purchasing an additional 3,961 shares in the last quarter. Finally, Atlantic Union Bankshares Corp purchased a new stake in shares of Watsco in the third quarter valued at about $1,392,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.

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