NYSE:WSO

Watsco (WSO) Stock Forecast, Price & News

$377.72

-2.65 (-0.70%)

(As of 09/29/2023 ET)

Compare

Today's Range: $376.10
▼
$384.25
50-Day Range: $341.03
▼
$380.27
52-Week Range: $228.61
▼
$386.40

Volume: 315,461 shs
Average Volume: 322,297 shs
Market Capitalization: $14.76 billion

P/E Ratio: 25.47
Dividend Yield: 2.59%
Price Target: $366.89

Watsco MarketRank™ Forecast

Analyst Rating: Hold
2.25 Rating Score
Upside/Downside: 2.9% Downside
$366.89 Price Target
Short Interest: Bearish
11.39% of Shares Sold Short
Dividend Strength: Strong
Based on Four Factors
Sustainability: -2.77
Upright™ Environmental Score
News Sentiment: 1.09
Based on 10 Articles This Week
Insider Trading: N/A
Proj. Earnings Growth: 5.34%
From $14.05 to $14.80 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

2.06 out of 5 stars

Construction Sector

68th out of 101 stocks

Hardware, & Plumbing & Heating Equipment & Supplies Industry

1st out of 1 stocks

2.1

Analyst's Opinion

Consensus Rating
Watsco has received a consensus rating of Hold. The company's average rating score is 2.25, and is based on 3 buy ratings, 4 hold ratings, and 1 sell rating.
Price Target Upside/Downside
According to analysts' consensus price target of $366.89, Watsco has a forecasted downside of 2.9% from its current price of $377.72.
Amount of Analyst Coverage
Watsco has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

0.0

Short Interest

Percentage of Shares Shorted
11.39% 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 15.4, which indicates bearish sentiment.
Change versus previous month
Short interest in Watsco has recently increased by 0.91%, indicating that investor sentiment is decreasing.

4.2

Dividend Strength

Dividend Yield
Watsco pays a meaningful dividend of 2.58%, higher than the bottom 25% of all stocks that pay dividends.
Dividend Growth
Watsco has been increasing its dividend for 10 years.
Dividend Coverage
The dividend payout ratio of Watsco is 66.08%. This payout ratio is at a healthy, sustainable level, below 75%.
Dividend Sustainability
Based on earnings estimates, Watsco will have a dividend payout ratio of 66.22% next year. This indicates that Watsco will be able to sustain or increase its dividend.

2.2

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
Watsco has received a 6.77% net impact score from Upright. The largest positive contribution comes from its "Societal infrastructure" impact, which is mostly driven by its "Underfloor cooling systems for homes", "Underfloor heating systems for homes", and "Building ventilation systems" products. See details.
Environmental Sustainability
The Environmental Impact score for Watsco is -2.77.

2.8

News and Social Media Coverage

News Sentiment
Watsco has a news sentiment score of 1.09. 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 0.69 average news sentiment score of Construction companies.
News Coverage This Week
MarketBeat has tracked 10 news articles for Watsco this week, compared to 4 articles on an average week.
Search Interest
Only 1 people have searched for WSO on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.
MarketBeat Follows
Only 4 people have added Watsco to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

2.5

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, Watsco insiders have not sold or bought any company stock.
Percentage Held by Insiders
13.30% 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
89.49% of the stock of Watsco is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

1.3

Earnings and Valuation

Earnings Growth
Earnings for Watsco are expected to grow by 5.34% in the coming year, from $14.05 to $14.80 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of Watsco is 25.47, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 113.58.
Price to Earnings Ratio vs. Sector
The P/E ratio of Watsco is 25.47, which means that it is trading at a more expensive P/E ratio than the Construction sector average P/E ratio of about 14.21.
Price to Earnings Growth Ratio
Watsco has a PEG Ratio of 4.89. PEG Ratios above 1 indicate that a company could be overvalued.
Price to Book Value per Share Ratio
Watsco has a P/B Ratio of 6.51. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

See Top Rated MarketRank™ Stocks Here

About Watsco (NYSE:WSO) Stock

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies. 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. It operates in the United States, Canada, Mexico, and Puerto Rico, as well as exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.

WSO Price History

30 days | 90 days | 365 days | Advanced Chart

WSO Stock News Headlines

September 27, 2023 | finance.yahoo.com

Watsco (WSO)'s True Worth: Is It Overpriced? An In-Depth Exploration

September 27, 2023 | theglobeandmail.com

2 Stocks to Buy Making Big Price Moves Today

September 30, 2023 | Chaikin Analytics (Ad)

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September 25, 2023 | americanbankingnews.com

Watsco, Inc. (NYSE:WSO) Given Consensus Recommendation of "Hold" by Brokerages

September 24, 2023 | americanbankingnews.com

Morgan Stanley Increases Watsco (NYSE:WSO) Price Target to $337.00

September 23, 2023 | americanbankingnews.com

Watsco (NYSE:WSO) Trading 4.6% Higher Following Analyst Upgrade

September 20, 2023 | investing.com

Watsco: Room To Rally

September 18, 2023 | markets.businessinsider.com

Loop Capital Markets Sticks to Their Hold Rating for Watsco (WSO)

September 30, 2023 | Oxford Club (Ad)

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September 8, 2023 | markets.businessinsider.com

Mizuho Securities Reaffirms Their Hold Rating on Watsco (WSO)

September 7, 2023 | finance.yahoo.com

Watsco (WSO) Boosts Market Presence With Gateway Supply Buyout

September 7, 2023 | finance.yahoo.com

Watsco to Present at the 11th Annual Morgan Stanley Laguna Conference on September 13, 2023

September 6, 2023 | finance.yahoo.com

Multibillion-dollar public company acquires South Carolina HVAC distributor for $103 million

September 6, 2023 | msn.com

Watsco acquires Gateway Supply

September 6, 2023 | finance.yahoo.com

Watsco Acquires Gateway Supply Company

September 6, 2023 | seekingalpha.com

Watsco: Good Growth Prospects But Priced In

September 2, 2023 | finance.yahoo.com

It's a Great Time of Year for Investors to Look at HVAC Companies

September 2, 2023 | finance.yahoo.com

Is It Time To Consider Buying Watsco, Inc. (NYSE:WSO)?

August 31, 2023 | finance.yahoo.com

Watsco (WSO) Up 1.2% Since Last Earnings Report: Can It Continue?

August 28, 2023 | msn.com

Stephens & Co. Reiterates Watsco Inc. - (WSO) Overweight Recommendation

August 10, 2023 | finance.yahoo.com

Should You Hold Watsco (WSO) for the Long-Term?

August 10, 2023 | finance.yahoo.com

Watsco, Inc. (NYSE:WSO) Shares Could Be 30% Above Their Intrinsic Value Estimate

August 2, 2023 | markets.businessinsider.com

The Latest Analyst Ratings for Watsco

August 2, 2023 | finance.yahoo.com

Watsco's (WSO) Q2 Earnings & Revenues Miss Estimates, Down Y/Y

August 2, 2023 | finance.yahoo.com

Q2 2023 Watsco Inc Earnings Call

August 1, 2023 | markets.businessinsider.com

Watsco Q2 Results Misses Estimates - Update

August 1, 2023 | finance.yahoo.com

Watsco Reports Strong Second Quarter Results

See More Headlines

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WSO Company Calendar

Ex-Dividend for 7/31 Dividend: 7/14/2023
Dividend Payable: 7/31/2023
Last Earnings: 8/01/2023
Today: 9/30/2023
Next Earnings (Estimated): 10/19/2023
Fiscal Year End: 12/31/2023

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Industry, Sector and Symbol

Stock Exchange: NYSE
Industry: Hardware, & plumbing & heating equipment & supplies
Sub-Industry: Trading Companies & Distributors
Sector: Construction
Current Symbol: NYSE:WSO
CUSIP: 94262220
CIK: 105016
Web: www.watsco.com
Phone: (305) 714-4100
Fax: 305-858-4492
Employees: 7,275
Year Founded: 1945

Price Target and Rating

Average Stock Price Forecast: $366.89
High Stock Price Forecast: $450.00
Low Stock Price Forecast: $325.00
Forecasted Upside/Downside: -2.9%
Consensus Rating: Hold
Rating Score (0-4): 2.25
Research Coverage: 8 Analysts

Profitability

EPS (Most Recent Fiscal Year): $14.83
Trailing P/E Ratio: 25.47
Forward P/E Ratio: 26.88
P/E Growth: 4.89
Net Income: $601.17 million
Net Margins: 8.06%
Pretax Margin: 11.15%
Return on Equity: 22.94%
Return on Assets: 14.28%

Debt

Debt-to-Equity Ratio: 0.14
Current Ratio: 3.02
Quick Ratio: 1.25

Sales & Book Value

Annual Sales: $7.27 billion
Price / Sales: 2.03
Cash Flow: $15.11 per share
Price / Cash Flow: 24.99
Book Value: $58.04 per share
Price / Book: 6.51

Miscellaneous

Outstanding Shares: 39,070,000
Free Float: 33,871,000
Market Cap: $14.76 billion
Optionable: Optionable
Beta: 0.95

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Key Executives

Mr. Albert H. Nahmad (Age 82)
Chairman & CEO
Comp: $1.09M

Mr. Aaron J. Nahmad (Age 42)
Pres & Director
Comp: $807.87k

Ms. Ana M. Menendez (Age 58)
CFO & Treasurer
Comp: $357.62k

Mr. Barry S. Logan (Age 60)
Exec. VP of Planning & Strategy and Sec.
Comp: $442.62k

Mr. Steven Rupp
Chief Technology Officer

Mr. Paul W. Johnston (Age 70)
Exec. VP

Key Competitors

View All Competitors

Institutional Ownership

View All Institutional Transactions

WSO Stock - Frequently Asked Questions

Should I buy or sell Watsco stock right now?: 8 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Watsco in the last year. There are currently 1 sell rating, 4 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "hold" WSO shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in WSO, but not buy additional shares or sell existing shares.
View WSO analyst ratings or view top-rated stocks.
What is Watsco's stock price forecast for 2023?: 8 analysts have issued 12 month target prices for Watsco's shares. Their WSO share price forecasts range from $325.00 to $450.00. On average, they anticipate the company's share price to reach $366.89 in the next year. This suggests that the stock has a possible downside of 2.9%.
View analysts price targets for WSO or view top-rated stocks among Wall Street analysts.
How have WSO shares performed in 2023?: Watsco's stock was trading at $249.40 at the start of the year. Since then, WSO stock has increased by 51.5% and is now trading at $377.72.
View the best growth stocks for 2023 here.
When is Watsco's next earnings date?: The company is scheduled to release its next quarterly earnings announcement on Thursday, October 19th 2023.
View our WSO earnings forecast.
How were Watsco's earnings last quarter?: Watsco, Inc. (NYSE:WSO) announced its quarterly earnings data on Tuesday, August, 1st. The construction company reported $4.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.87 by $0.45. The construction company had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.19 billion. Watsco had a net margin of 8.06% and a trailing twelve-month return on equity of 22.94%. Watsco's revenue was down 6.3% on a year-over-year basis. During the same quarter last year, the company posted $4.93 earnings per share.
How often does Watsco pay dividends? What is the dividend yield for Watsco?: Watsco declared a quarterly dividend on Monday, July 3rd. Shareholders of record on Monday, July 17th will be given a dividend of $2.45 per share on Monday, July 31st. This represents a $9.80 annualized dividend and a dividend yield of 2.59%. The ex-dividend date of this dividend is Friday, July 14th.
Read our dividend analysis for WSO.
What ETFs hold Watsco's stock?: ETFs with the largest weight of Watsco (NYSE:WSO) stock in their portfolio include Timothy Plan Market Neutral ETF (TPMN), Motley Fool Global Opportunities ETF (TMFG), Motley Fool Mid-Cap Growth ETF (TMFM), Motley Fool Small-Cap Growth ETF (TMFS), MFAM Small-Cap Growth ETF (MFMS), AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG), Inspire Faithward Mid Cap Momentum ETF (GLRY) and ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM).
Is Watsco a good dividend stock?: Watsco (NYSE:WSO) pays an annual dividend of $9.80 per share and currently has a dividend yield of 2.58%. The company has been increasing its dividend for 10 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. The dividend payout ratio is 66.08%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, WSO will have a dividend payout ratio of 66.22% next year. This indicates that the company will be able to sustain or increase its dividend.
Read our dividend analysis for WSO.

What is Albert H. Nahmad's approval rating as Watsco's CEO?: 15 employees have rated Watsco Chief Executive Officer Albert H. Nahmad on Glassdoor.com. Albert H. Nahmad has an approval rating of 85% among the company's employees. 68.0% of employees surveyed would recommend working at Watsco to a friend.
What other stocks do shareholders of Watsco own?: Based on aggregate information from My MarketBeat watchlists, some companies that other Watsco investors own include NVIDIA (NVDA), Walt Disney (DIS), Verizon Communications (VZ), Johnson & Johnson (JNJ), Home Depot (HD), Coca-Cola (KO), Netflix (NFLX), Tesla (TSLA), Visa (V) and AbbVie (ABBV).
What is Watsco's stock symbol?: Watsco trades on the New York Stock Exchange (NYSE) under the ticker symbol "WSO."
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 WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.
Compare Top Brokerages Here.
What is Watsco's stock price today?: One share of WSO stock can currently be purchased for approximately $377.72.
How much money does Watsco make?: Watsco (NYSE:WSO) has a market capitalization of $14.76 billion and generates $7.27 billion in revenue each year. The construction company earns $601.17 million in net income (profit) each year or $14.83 on an earnings per share basis.
How many employees does Watsco have?: The company employs 7,275 workers across the globe.
How can I contact Watsco?: Watsco's mailing address is 2665 SOUTH BAYSHORE DRIVE SUITE 901, MIAMI FL, 33133. The official website for the company is www.watsco.com. The construction company can be reached via phone at (305) 714-4100, via email at info@watsco.com, or via fax at 305-858-4492.

This page (NYSE:WSO) was last updated on 9/30/2023 by MarketBeat.com Staff

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