Watsco (WSO) Stock Price, News & Analysis

Company Overview

Watsco, Inc. (NYSE: WSO) is a distributor of heating, air conditioning and refrigeration equipment and related products. The company supplies residential and commercial contractors with air conditioners, heat pumps, furnaces, refrigeration systems, indoor air-quality products, controls, replacement parts and other installation supplies.

Watsco serves the replacement and new-construction markets through a network of distribution centers, branches, showrooms and e-commerce platforms. Its customers primarily include HVAC and refrigeration contractors, dealers and other industry professionals, while its products are sourced from major manufacturers and distributed under leading industry brands.

Founded in 1956, Watsco has expanded through organic growth and acquisitions to become one of the largest HVAC and refrigeration distributors in North America. The company primarily serves markets in the United States, with additional operations in Canada and select international markets. Albert H. Nahmad serves as Watsco’s chairman and chief executive officer.

Key Stats

• Today's Range: $287.79 to $296.54
• 50-Day Range: $280.19 to $330.14
• 52-Week Range: $277.34 to $459.00
• Volume: 844,245 shs
• Average Volume: 521,709 shs
• Market Capitalization: $12.17 billion
• P/E Ratio: 25.59
• Dividend Yield: 4.47%
• Price Target: $386.13
• Consensus Rating: Hold

Watsco Stock Analysis - MarketRank™

Watsco scored higher than 84% of companies evaluated by MarketBeat, and ranked 210th out of 655 stocks in the industrials sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 4.1 / 5
• Analyst Rating: Hold

Consensus Rating

Watsco has received a consensus rating of Hold. The company's average rating score is 2.10, and is based on no strong buy ratings, 2 buy ratings, 7 hold ratings, and 1 sell rating.

Upside Potential

Watsco has a consensus price target of $386.13, representing about 30.8% upside from its current price of $295.11.

Amount of Analyst Coverage

Watsco has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 9.82%

Earnings Growth

Earnings for Watsco are expected to grow by 9.82% in the coming year, from $12.22 to $13.42 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Watsco is 25.59, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 36.70.

Price to Earnings Ratio vs. Sector

The P/E ratio of Watsco is 25.59, which means that it is trading at a more expensive P/E ratio than the Industrials sector average P/E ratio of about 24.00.

Price to Book Value per Share Ratio

Watsco has a P/B Ratio of 3.71. 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

11.62% 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 7.74.

Change versus previous month

Short interest in Watsco has recently increased by 4.34%, indicating that investor sentiment is decreasing.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Leadership

Watsco is a leading dividend payer. It pays a dividend yield of 4.61%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Watsco has been increasing its dividend for 13 years.

Dividend Coverage

The dividend payout ratio of Watsco is 114.48%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Watsco will have a dividend payout ratio of 98.36% in the coming year. This indicates that Watsco may not be able to sustain their current dividend.

News and Social Media

• Score: 2.8 / 5
• News Sentiment: 0.44

News Sentiment

Watsco has a news sentiment score of 0.44. 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 lower news sentiment than the 0.57 average news sentiment score of Industrials companies.

News Coverage This Week

MarketBeat has tracked 11 news articles for Watsco this week, compared to 5 articles on an average week.

Search Interest

6 people have searched for WSO on MarketBeat in the last 30 days. This is an increase of 20% 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.

Company Ownership

• Score: 1.2 / 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

12.88% 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.

Company Calendar

• Record date for 7/31 Dividend: 7/16/2026
• Ex-Dividend for 7/31 Dividend: 7/16/2026
• Last Earnings: 7/29/2026
• Dividend Payable: 7/31/2026
• Today: 10/15/2026
• Record date for 10/30 Dividend: 10/16/2026
• Ex-Dividend for 10/30 Dividend: 10/16/2026
• Next Earnings (Estimated): 10/27/2026
• Dividend Payable: 10/30/2026
• Fiscal Year End: 12/31/2026

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Industrials
• Industry: Trading Companies & Distributors
• Sub-Industry: Trading Companies & Distributors
• Current Symbol: NYSE:WSO
• CIK: 105016
• Web: www.watsco.com
• Phone: (305) 714-4100
• Fax: 305-858-4492
• Employees: 7,050
• Year Founded: 1956

Price Target and Rating

• Average Price Target for Watsco: $386.13
• High Price Target: $485.00
• Low Price Target: $330.00
• Potential Upside/Downside: +30.8%
• Consensus Rating: Hold
• Rating Score (0-4): 2.10
• Research Coverage: 10 Analysts

Profitability

• EPS (Trailing Twelve Months): $11.53
• Trailing P/E Ratio: 25.59
• Forward P/E Ratio: 24.15
• P/E Growth: N/A
• Net Income: $496.99 million
• Net Margins: 6.53%
• Pretax Margin: 9.67%
• Return on Equity: 14.40%
• Return on Assets: 10.17%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 3.20
• Quick Ratio: 1.45

Sales & Book Value

• Annual Sales: $7.28 billion
• Price / Sales: 1.67
• Cash Flow: $13.50 per share
• Price / Cash Flow: 21.86
• Book Value: $79.44 per share
• Price / Book: 3.71

Miscellaneous

• Outstanding Shares: 41,252,000
• Free Float: 35,939,000
• Market Cap: $12.17 billion
• Optionable: Optionable
• Beta: 1.06