Watsco, Inc. (WSO) Stock Price, News, Analysis

Technical Score (1D)

SELL

News Sentiment

BEARISH

Watsco’s executives highlighted an expanded footprint at the Morgan Stanley Laguna Conference, underscoring the company’s ongoing growth trajectory, but no new financial guidance was disclosed. The same week, the firm’s Q2 revenue beat estimates by 3.7 %, driven by resilient demand for HVAC and plumbing products and a focus on omnichannel capabilities. That earnings strength suggests the company is still able to capture volume even as gross margins have slipped, a trend that will be closely watched in the next earnings cycle. Meanwhile, WSO’s announced acquisition of The Granite Group—adding 82 locations, 11,000 customers and 29,000 SKUs—expands its Northeast plumbing and HVAC presence and should deliver operational synergies and cross‑sell opportunities. The deal, priced at a premium, signals confidence that the added scale will lift top‑line growth and margin expansion, but integration timing and regulatory approvals remain key watch items. The combination of a margin‑squeezed earnings profile and a large acquisition creates a near‑term trade‑off: volume growth may continue while profitability pressures persist. Investors should monitor the company’s next earnings release for updated guidance on margin recovery and the progress of the Granite Group integration. Additionally, watch for any updates on international market performance, as recent softness in those regions has raised concerns about the company’s geographic mix. Finally, keep an eye on regulatory developments that could affect the closing of the Granite Group deal, as any delay could dampen the expected upside.

WSO|Analyst Targets

LOW TARGET

$330 +5.8%

5 analysts

MEAN TARGET

$379 +21.6%

16 analysts

HIGH TARGET

$485 +55.6%

3 analysts

PRICE RANGE

$330.00 - $485.00

SB / B / H / S / SS

2/1/14/5/2

DAILYIQ EST.

$362.61 (+16.3%)

WSO|Company Info

Sector

Industrials

Industry

Industrial Distribution

Exchange

NYQ

Country

United States

Website

watsco.com

Symbol

WSO

Description

Watsco, Inc. is a leading distributor of HVAC/R (heating, ventilation, air conditioning, and refrigeration) equipment, parts, and supplies, strategically serving the North American, Latin American, and Caribbean markets. The company's core business focuses on providing essential components and systems for both residential and commercial applications, including air conditioners, furnaces, and specialized refrigeration units. Watsco's comprehensive product offerings extend beyond equipment to encompass a wide array of replacement parts, from compressors and coils to essential supplies like thermostats and refrigerants. By catering to contractors and dealers involved in the replacement and new construction segments, Watsco establishes itself as a critical link in the HVAC/R supply chain. Established in 1956, the company's long-standing presence and Miami, Florida headquarters underscore its enduring commitment to the industry.

WSO|Fundamentals

Bullish

Verdict: Bullish

✕Revenue declining year over year

✓Positive net margin

✓Positive operating cash flow

Gross Margin

28.0%

Net Margin

6.9%

Revenue CAGR

8.9%

Current Ratio

4.12x

Debt / Equity

0.13x

Return on Equity

17.9%

WSO|Earnings Snapshot

Earnings Summary

Watsco, Inc. is a leading distributor of HVAC/R equipment, parts, and supplies across North America, Latin America, and the Caribbean, positioning itself as a critical link in the industrial distribution sector. The company’s recent Q4 2024 results showed EPS of $2.37 versus an estimate of $2.19 and revenue of $1.754 billion, reflecting a 3.6% YoY increase and a 3.6% beat in earnings; however, Q4 2025 revenue fell to $1.579 billion, a 4.1% decline, and EPS missed estimates at $1.68 versus $1.90, indicating a slowdown in the latter period. Over the past two quarters, Watsco’s revenue growth has decelerated, and EPS has trended downward, though the company still managed to beat estimates in the most recent quarter. Historically, the firm has maintained a positive YoY revenue trajectory, with EPS growth fluctuating but generally aligning with analyst expectations; the company has consistently met or exceeded earnings estimates in three of the last four quarters, demonstrating resilience amid market volatility. Recent news reports the acquisition of The Granite Group, adding 82 outlets, 11,000 customers, and 29,000 SKUs, which is expected to boost revenue by approximately $500 million and improve margins through cross‑selling opportunities; the deal also expands Watsco’s footprint in the Northeast, a region with strong demand for HVAC and plumbing supplies. Investors should watch for the integration progress of Granite, any operational synergies that materialize, and the impact on quarterly guidance; monitoring regional economic indicators that influence HVAC spending will also be crucial to assess the acquisition’s contribution to future growth. These watch points will help determine whether the strategic expansion translates into sustained earnings momentum.

Read full report

EPS

EstBeatMiss

Qtr	Est	Actual	+/−
Q3'26	$4.19	-	-
Q2'26	$4.34	$4.00	-7.8%
Q4'25	$1.90	$1.68	-11.6%
Q4'24	$2.19	$2.37	+8.2%

Revenue

EstBeatMiss

Qtr	Est	Actual	+/−
Q3'26	$2.2B	-	-
Q2'26	$2.2B	$2.1B	-3.0%
Q4'25	$1.6B	$1.6B	-3.6%
Q4'24	-	$1.8B	-

Full Earnings BreakdownEstimates, actuals, guidance, and historical context

→

WSO|Monthly Returns

Market Data

WSO Stock Snapshot

HOLD36/100

$311.77−$0.41 (0.1%)

Market cap: 12.95B
P/E ratio: 27.2
Day range: $304.09 – $314.30
News sentiment: 38/100 · Bearish
Analyst target: $379.20 (+21.6%)
Consensus: Hold · 24 analysts

52-week range+5.4% off low · -32.2% from high

$295.75$459.66

Price $311.77 DailyIQ Est. $362.61

The setup on Watsco, Inc. is patient: consolidation, not accumulation or distribution. In Industrials, names this size usually take direction from sector flows before company-level news.

Reverse DCF

What growth is priced into WSO?

FAIR

At today's price, Watsco, Inc. needs to grow free cash flow about 12.9% a year for the next 10 years to justify its valuation at a 9.01% cost of capital. Over its actual history it has compounded free cash flow at 13.6% a year, so the market is asking for 0.7 percentage points below its own delivered rate. On that basis WSO looks priced roughly in line with its own growth record.

Implied FCF growth: 12.9%
Historical FCF CAGR: 13.6%
Growth gap: -0.7 pts
Verdict: FAIR
Discount rate (WACC): 9.01%
Beta: 0.84

Behaviour On Record

What WSO's own history says about today's numbers

Realized volatility (21d): 25.2% 61st pct
Below its peak: -45.2%
vs 200-day average: -16.6%
Up days (1y): 49%

Watsco, Inc. is currently running 25.2% annualised volatility over the last 21 sessions. Measured against WSO's own 13 years of daily returns rather than a market-wide average, that is the 61st percentile — a little above its own norm, against a typical reading of 22.4%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

WSO is trading -45.2% below its running peak. Across 12 full years on file, its median worst-drawdown-in-a-year was -16.1%, and the deepest was -39.0% in 2025. The current drawdown is already deeper than this stock's typical annual low point, which puts it in the part of its range where past recoveries began — and where past declines also continued.

Price sits -16.6% from its 200-day moving average. Against every other day in its history, that gap ranks at the 4th percentile — a narrower gap than it typically runs. Over the past year WSO closed higher on 49% of sessions, and it is currently 3 sessions into a rising streak.

On September specifically: over 13 years of records, WSO finished the month higher 6 of 13 times, with a median return of -1.0% and an average of -0.3%. Its strongest month historically has been June at +2.7% on average, its weakest December at -0.9%. Seasonality is a weak signal on its own — a decade is a small sample and regimes change — but it is a real distribution rather than a rule of thumb.

Overnight risk is measurable too: WSO has opened more than 2% away from the prior close in 81 of 3,267 sessions (2.5% of the time), with the largest gaps running +10.7% and -12.7%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

All figures computed from 3,268 daily closes between 2013-09-20 and 2026-09-18, split-adjusted, recomputed daily. Percentiles are against WSO's own 13-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of WSO's sector?

Watsco, Inc. sits in the Industrials sector, currently ranked 11th of 11 GICS sectors by relative-strength rotation score (improving).

Sector rank: #11 of 11
Sector state: Improving
Sector rotation score: 30

Options Market

What is the options market pricing for WSO?

CallsPuts

For Watsco, Inc.'s nearest expiry (2026-10-16, 27 days out), open interest is put-heavy, a defensive/bearish tilt (put/call ratio of 2.69), with at-the-money implied volatility around 36.1%. The options market is pricing roughly a ±9.8% move by that expiry — a range of about $275.93–$336.20.

Put/call ratio (2026-10-16): 2.69
ATM implied volatility: 36.1%
Total open interest: 295
Expected move by 2026-10-16: ±9.8% ($275.93–$336.20)

Analyst Rating Changes

Are analysts turning bullish or bearish on WSO?

Stephens & Co. most recently reiterated its rating on Watsco, Inc. to Overweight on Aug 17, 2026 with a price target of $485. Over the last 90 days, coverage has run 0 upgrades against 0 downgrades, a net mixed lean.

Latest action: Stephens & Co. — Overweight
90-day upgrades: 0
90-day downgrades: 0
Net rating momentum: 0

Date	Firm	Action	Rating	Price target
Aug 17, 2026	Stephens & Co.	Reiterated	Overweight	$485
Jul 30, 2026	DA Davidson	Maintained	Neutral	$385 → $330
Jul 28, 2026	Baird	Maintained	Outperform	$460 → $420
Jul 10, 2026	Morgan Stanley	Maintained	Equal-Weight	$370 → $405
Jun 16, 2026	DA Davidson	Initiated	Neutral	$385
Apr 29, 2026	Stephens & Co.	Maintained	Overweight	$475 → $485
Feb 19, 2026	JP Morgan	Maintained	Neutral	$370 → $400
Jan 16, 2026	JP Morgan	Maintained	Neutral	$360 → $370
Jan 14, 2026	Morgan Stanley	Maintained	Equal-Weight	$460 → $370
Jan 5, 2026	Mizuho	Maintained	Neutral	$400 → $370
Nov 6, 2025	UBS	Maintained	Neutral	$425 → $390
Oct 30, 2025	JP Morgan	Maintained	Neutral	$400 → $360

WSO Competitive Positioning

Watsco, Inc. (WSO) is tracked alongside these names in Industrial Distribution on DailyIQ — ranked by market cap, with today's move alongside.

Held by These ETFs

WSO is a top holding in these ETFs tracked on DailyIQ — bar length shows portfolio weight.

News Sentiment Analysis

Sentiment gathered from recent headlines

38/100

Strong NegativeNeutralStrong Positive

BEARISH

Recent News Coverage

Most recent articles, ranked by recency (click to expand).

10+ articles

What did this article say?

Watsco’s stock has fallen 19.2% over the past six months, largely due to softer quarterly results that have dampened investor confidence. Analysts highlight a sluggish 5.1% CAGR in sales over the last five years, falling short of industry benchmarks. The company’s guidance remains muted, and market sentiment suggests a continued underperformance relative to peers.

What did this article say?

Watsco (WSO) participated in Morgan Stanley’s 14th Annual Laguna Conference, with senior executives Barry Logan and Rick Gomez on the stage. The session focused on the company’s expanded footprint and strategic direction, but did not disclose new financial guidance or material developments. Traders should monitor the upcoming earnings release for any updates on revenue growth and margin expectations.

What did this article say?

Watsco (WSO) was highlighted among a cohort of industrial distributors that collectively reported Q2 revenues exceeding analyst expectations by 3.7%. The company’s performance reflects resilience amid supply‑chain disruptions and a focus on omnichannel capabilities. While the broader sector faced headwinds from economic cycles, WSO’s strong earnings suggest robust demand for its product mix. Investors should monitor WSO’s guidance for the next quarter and any updates on capital‑spending trends that could influence distribution demand.

What did this article say?

Watsco (WSO) is evaluating how the acquisition of The Granite Group can broaden its plumbing and HVAC presence. The deal would add 82 locations, potentially boosting WSO’s market penetration and cross‑sell opportunities. The integration is expected to enhance operational synergies and strengthen the company’s competitive positioning in the residential services sector. Analysts view the move as a moderate tailwind that could lift earnings guidance modestly.

What did this article say?

Watsco (WSO) has agreed to acquire The Granite Group, a distributor with $500 million in sales across seven Northeast states, adding 82 new locations to its plumbing and HVAC footprint. The deal is expected to strengthen WSO’s presence in the Northeast, enhance its OEM relationships, and leverage its technology platform for faster market penetration. The transaction is priced at a premium to Granite’s current valuation, reflecting WSO’s confidence in synergies and growth potential. Analysts view the acquisition as a strategic move to diversify revenue streams and capture higher-margin plumbing product sales.

What did this article say?

Watsco (WSO) has agreed to acquire The Granite Group, a distributor with roughly $500 million in sales across plumbing and HVAC markets. The deal expands WSO’s footprint in the U.S. and adds complementary product lines, potentially boosting revenue and market share. While the purchase price and terms remain undisclosed, the transaction is expected to enhance WSO’s distribution network and customer base. Investors should monitor the integration timeline and any regulatory approvals that could affect the closing.

What did this article say?

Watsco, Inc. (WSO) announced that its Executive Vice President Barry S. Logan and Vice President Rick Gomez will speak at the 14th Annual Morgan Stanley Laguna Conference on September 16, 2026. The event is a routine investor relations appearance with no new financial guidance or strategic announcements. The presentation is scheduled to be webcast via WSO’s Investor Relations site. No material operational or financial updates were disclosed, so the announcement is neutral for investors.

What did this article say?

Watsco (WSO) is highlighted among a trio of stocks experiencing significant price declines and questioned fundamentals. The article notes that WSO’s share price has fallen to a 12‑month low, prompting investors to reassess its valuation. While specific financial metrics are not detailed, the inclusion signals potential concerns over revenue growth, profitability, or capital allocation. Traders should monitor any forthcoming earnings guidance or management commentary that clarifies the company’s strategic direction.

What did this article say?

Watsco’s Q2 2026 results fell short of consensus, with earnings of $4.00 per share versus an estimate of $4.38 and revenue of $2.10 billion versus $2.16 billion. The shortfall was driven by contracting gross margins, largely due to a favorable OEM pricing environment in the prior year that made the current period harder to compare. Despite the earnings miss, same‑store sales improved, buoyed by stronger residential HVAC demand. The market reaction has been muted, with shares adding only 0.8% since the last report, underperforming the S&P 500. Investors are now focused on whether the margin squeeze will persist and how the company will navigate pricing pressures in the next quarter.

Technical Analysis

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SELL

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Institutional & Hedge Fund Ownership

25 tracked managers · $7.01B combined position · 11 adding, 11 trimming, 3 unchanged (latest 13F filings)

Manager	Trend	Shares Held	% of Co.	Position Value	Filed
BlackRock, Inc.	▲ Buy	4,192,920	10.09%	$1.75B	2026-08-07
Vanguard Group Inc	▼ Sell	3,523,522	8.48%	$1.19B	2026-01-29
Capital Research Global Investors	▲ Buy	1,902,230	4.58%	$792.71M	2026-08-12
FMR LLC (Fidelity)	▼ Sell	1,705,273	4.10%	$710.64M	2026-08-13
Baillie Gifford & Co	▼ Sell	1,129,536	2.72%	$470.71M	2026-08-06
Morgan Stanley	▲ Buy	902,995	2.17%	$376.30M	2026-08-13
Geode Capital Management, LLC	▲ Buy	659,265	1.59%	$274.19M	2026-08-12
Wells Fargo & Company	▼ Sell	398,839	0.96%	$166.21M	2026-08-14
Norges Bank	▲ Buy	340,450	0.82%	$141.88M	2026-08-12
Capital World Investors	• Hold	339,018	0.82%	$141.28M	2026-08-12
Goldman Sachs Group Inc	▼ Sell	335,225	0.81%	$139.69M	2026-08-14
Northern Trust Corp	▲ Buy	333,627	0.80%	$139.03M	2026-08-13
Bank of America Corp	▲ Buy	286,256	0.69%	$119.29M	2026-08-14
JPMorgan Chase & Co	▲ Buy	207,064	0.50%	$85.02M	2026-08-12
Susquehanna International Group, LLP	▼ Sell	177,259	0.43%	$73.87M	2026-08-14
Renaissance Technologies LLC	▼ Sell	151,160	0.36%	$62.99M	2026-08-13
Citigroup Inc	▲ Buy	139,518	0.34%	$58.14M	2026-08-03
Wellington Management Group LLP	▼ Sell	132,056	0.32%	$55.03M	2026-08-14
Neuberger Berman Group LLC	▼ Sell	130,302	0.31%	$54.30M	2026-08-13
Junto Capital Management LP	• Hold	145,151	0.35%	$52.80M	2026-05-15
Two Sigma Investments, LP	▼ Sell	98,582	0.24%	$41.08M	2026-08-14
Invesco Ltd.	▲ Buy	90,437	0.22%	$37.69M	2026-08-14
AQR Capital Management LLC	▲ Buy	71,378	0.17%	$29.55M	2026-08-14
Citadel Advisors LLC	• Hold	67,281	0.16%	$28.04M	2026-09-02
Gotham Asset Management, LLC	▼ Sell	63,068	0.15%	$26.28M	2026-08-14

Q2 2026 flow:314.6K sh bought ($130.94M)857.3K sh sold ($357.26M)net -542.7K sh (−$226.32M)

Congressional Trading Activity

4 disclosed trades · ~$32.0K est. traded value · 2 buys, 2 sells

Member	Chamber	State	Type	Amount	Traded	Filed
Valerie Hoyle	House	OR04	▼ Sell	$1K - $15K	2025-09-23	2025-10-10
Lisa McClain	House	MI09	▼ Sell	$1K - $15K	2025-08-13	2025-09-12
Lisa McClain	House	MI09	▲ Buy	$1K - $15K	2025-06-17	2025-08-13
Valerie Hoyle	House	OR04	▲ Buy	$1K - $15K	2024-10-29	2025-09-12

WSO·Watsco, Inc.

EPS

Revenue

WSO Stock Snapshot

What growth is priced into WSO?

What WSO's own history says about today's numbers

Is money rotating into or out of WSO's sector?

What is the options market pricing for WSO?

Are analysts turning bullish or bearish on WSO?

WSO Competitive Positioning

Held by These ETFs

News Sentiment Analysis

Recent News Coverage

Technical Analysis

Real-time indicators across multiple timeframes

News Sentiment Analysis

Recent News Coverage

Technical Analysis

Real-time indicators across multiple timeframes

Market Status

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Portfolio News

Economic Events

Earnings Events

Economic News

WSO·Watsco, Inc.

EPS

Revenue

WSO Stock Snapshot

What growth is priced into WSO?

What WSO's own history says about today's numbers

Is money rotating into or out of WSO's sector?

What is the options market pricing for WSO?

Are analysts turning bullish or bearish on WSO?

WSO Competitive Positioning

Held by These ETFs

News Sentiment Analysis

Recent News Coverage

Technical Analysis

Real-time indicators across multiple timeframes

Discover More

News Sentiment Analysis

Recent News Coverage

Technical Analysis

Real-time indicators across multiple timeframes

Discover More

Market Status

Recently Viewed

Portfolio

Email Alerts

Portfolio News

Economic Events

Earnings Events

Economic News