DailyIQ
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Sector:IndustrialsAll sectors
Last updated 1 minute ago

WSO·Watsco, Inc.

$.
-. (-.%)
After Hours
High
$374.33
Open
$371.47
Market Cap
15.20B
52W High
$494.94
Low
$364.78
P. Close
$371.91
P/E
30.64
52W Low
$323.05
Fwd P/E
84.12
DailyIQ Est.
$419.50
Technical Score (1D)
14
SELL
News Sentiment
53
MIXED
Watsco has scheduled its Q2 earnings call for July 29, 2026, giving traders a key event to assess updated earnings, margins and cash generation. The company trades below its fair‑value estimate, with analysts noting an undervaluation narrative that could influence short‑term sentiment. Argus Research recently lifted its target price to $415, citing expected margin expansion and continued growth in core product lines, while Morgan Stanley upgraded the stock to equal‑weight with a $405 target, both suggesting a bullish outlook. However, Argus also lowered its target to $409 earlier this year due to earnings volatility and competitive pressures, creating uncertainty about the true valuation range. The upcoming earnings call will therefore be critical for confirming whether the company can sustain higher margins and cash flow, which would support the higher target levels. A positive earnings surprise or stronger guidance could validate the undervaluation thesis and lift the stock, whereas a miss or weaker outlook could reinforce the downgrade concerns. In addition to earnings, the company has declared a $3.30 quarterly dividend, its 52nd consecutive payment, signaling ongoing cash‑flow stability that may appeal to income‑focused investors. Traders should watch the earnings presentation for any commentary on competitive dynamics, supply chain constraints, and capital allocation plans, as these factors directly affect margin outlook. Monitoring the market’s reaction to the call and any subsequent guidance revisions will be essential for positioning ahead of the next earnings release.
Earnings Summary
WSO is a leading distributor of HVAC/R equipment, parts, and supplies, serving contractors and dealers across North America, Latin America, and the Caribbean, and has been a critical link in the HVAC/R supply chain since 1956. In the industrial distribution sector, WSO’s focus on core product lines such as air conditioners, furnaces, and refrigeration units positions it to benefit from steady demand in both residential and commercial markets. In the most recent two quarters, Q4 2024 and Q4 2025, revenue fell from $1.7539 billion to $1.5788 billion, a 10% decline, while EPS dropped from $2.37 to $1.68, a 29% decline, indicating a contraction in profitability that has seen the company miss analyst estimates in Q4 2025 after beating them in Q4 2024. Historically, WSO has experienced mixed earnings momentum, with revenue growth in 2024 followed by a year‑over‑year decline in 2025, and EPS showing a similar downward trend; the company has delivered earnings that beat guidance in 2024 but missed in 2025, reflecting volatility in its operating performance. Recent analyst commentary has highlighted a shift in consensus, with Argus Research lifting its target price to $415 on the back of expected margin expansion and WSO’s acquisition of Jackson Supply, while earlier cuts were attributed to earnings volatility and competitive pressure; the company also declared a $3.30 quarterly dividend, its 52nd consecutive year, underscoring a stable cash‑flow base that may support its risk‑reward profile. Investors should watch for the company’s forthcoming earnings guidance, particularly any updates on margin expansion, the integration progress of Jackson Supply, and potential adjustments to its dividend policy, as these factors will shape short‑term sentiment and help determine whether the upgraded outlook can be sustained in the next quarter.

EPS

EstBeatMiss
$1.27$2.16$3.04$3.93$4.82Q4'24Q4'25Q2'26
QtrEstActual+/−
Q2'26$4.41 - -
Q4'25$1.90$1.68-11.6%
Q4'24$2.19$2.37+8.2%

Revenue

EstBeatMiss
$1.5B$1.7B$1.9B$2.1B$2.3BQ4'24Q4'25Q2'26
QtrEstActual+/−
Q2'26$2.2B - -
Q4'25$1.6B$1.6B-3.6%
Q4'24 - $1.8B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

WSO Stock Snapshot

WSO is currently trading at $371.91, giving Watsco, Inc. a market cap of 15.20B and a P/E ratio of 30.6. Today's range spans $364.78–$374.33, with shares opening at $371.47 and moving up $0.00 (0.0%) from the prior close. DailyIQ's technical score sits at 14/100 (SELL) with a news sentiment reading of 53/100.

Over the past year WSO has traded between $323.05 and $494.94 - the current price is +15.1% off the 52-week low and -24.9% from the high. 24 analysts cover the stock with a Hold consensus and a mean 12-month target of $430.20 (range $385.00–$485.00), implying upside of +15.7%.

Watsco, Inc. (WSO) is at $371.91 (in the lower half of its 52-week range in $323.05–$494.94), carrying a SELL signal (14/100) and neutral sentiment (53/100). The current P/E ratio stands at 30.6. The 15.20B market cap in Industrials means this name is well-covered by analysts who can accelerate the downside through rating cuts and target reductions - a feedback loop that smaller stocks with less coverage don't face to the same degree.

Analyst coverage for WSO becomes a double-edged factor in a SELL phase: at 15.20B in Industrials market cap, active coverage is high enough that downgrade risk is real and impactful. The 14/100 technical reading and neutral sentiment (53/100) at $371.91 (in the lower half of its 52-week range) place the stock in the zone where one or two high-profile estimate cuts can convert a grinding decline into a sharper re-rating — the $323.05–$494.94 range establishes where that repricing lands.