Watsco (WSO) Stock Overview
Engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. More details
| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
WSO Community Fair Values
Create NarrativeSee what 31 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Watsco, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$311.77 |
| 52 Week High | US$459.00 |
| 52 Week Low | US$295.75 |
| Beta | 1.04 |
| 1 Month Change | -2.46% |
| 3 Month Change | -22.26% |
| 1 Year Change | -20.03% |
| 3 Year Change | -12.52% |
| 5 Year Change | 12.32% |
| Change since IPO | 14,631.13% |
Recent News & Updates
Narrative Update • Sep 17
WSO: Future Returns Will Reflect Margin Recovery And Granite Group Acquisition
Analysts have trimmed the Watsco fair value estimate from $410.60 to $379.20, reflecting lower price targets across the Street after recent Q2 margin pressure, along with modest adjustments to growth, margin, discount rate, and future P/E assumptions. Analyst Commentary Recent research on Watsco highlights a mixed but constructive backdrop, with analysts adjusting price targets and models after Q2 results while keeping a close eye on margins, pricing and near term demand trends.
Narrative Update • Sep 03
WSO: Dividend Yield And Weather Driven Demand Will Support Future P/E Rebound
Analysts have reduced the Watsco fair value estimate from $485.00 to about $470.52, citing recent price target cuts following Q2 earnings. Weaker gross margins and updated P/E assumptions played a key role in this reset.
Narrative Update • Aug 14
WSO: Margin Pressures And Housing Headwinds Will Test Dividend And Volume Resilience
Analysts have reduced the fair value estimate for Watsco to $330 from $385, as recent research points to pressure on gross margins and a slightly higher assumed discount rate, partially offset by stable volumes and modestly higher recent sales trends. Analyst Commentary Recent Street research on Watsco points to a more cautious tone, with multiple bearish analysts trimming price targets and highlighting execution risks around margins.Seeking Alpha • Aug 05
Watsco: Transient Headwinds, Good Long Term Opportunity
Summary Watsco, Inc. (WSO) is rated a buy after a post-earnings pullback, with normalization post-A2L transition expected to drive recovery. Watsco's gross margin contraction is seen as transient, with mix improvement and pricing initiatives targeting medium-term margin expansion. Digital ecosystem adoption and underpenetrated high-margin parts/supplies sales provide a runway for market share gains and margin upside. Watsco offers a 4%+ dividend yield, double-digit EPS growth potential, and trades at a discount to industrial distribution peers. Read the full article on Seeking AlphaRecent updates
Narrative Update • Sep 17
WSO: Future Returns Will Reflect Margin Recovery And Granite Group Acquisition
Analysts have trimmed the Watsco fair value estimate from $410.60 to $379.20, reflecting lower price targets across the Street after recent Q2 margin pressure, along with modest adjustments to growth, margin, discount rate, and future P/E assumptions. Analyst Commentary Recent research on Watsco highlights a mixed but constructive backdrop, with analysts adjusting price targets and models after Q2 results while keeping a close eye on margins, pricing and near term demand trends.Narrative Update • Sep 03
WSO: Dividend Yield And Weather Driven Demand Will Support Future P/E Rebound
Analysts have reduced the Watsco fair value estimate from $485.00 to about $470.52, citing recent price target cuts following Q2 earnings. Weaker gross margins and updated P/E assumptions played a key role in this reset.Narrative Update • Aug 14
WSO: Margin Pressures And Housing Headwinds Will Test Dividend And Volume Resilience
Analysts have reduced the fair value estimate for Watsco to $330 from $385, as recent research points to pressure on gross margins and a slightly higher assumed discount rate, partially offset by stable volumes and modestly higher recent sales trends. Analyst Commentary Recent Street research on Watsco points to a more cautious tone, with multiple bearish analysts trimming price targets and highlighting execution risks around margins.Seeking Alpha • Aug 05
Watsco: Transient Headwinds, Good Long Term Opportunity
Summary Watsco, Inc. (WSO) is rated a buy after a post-earnings pullback, with normalization post-A2L transition expected to drive recovery. Watsco's gross margin contraction is seen as transient, with mix improvement and pricing initiatives targeting medium-term margin expansion. Digital ecosystem adoption and underpenetrated high-margin parts/supplies sales provide a runway for market share gains and margin upside. Watsco offers a 4%+ dividend yield, double-digit EPS growth potential, and trades at a discount to industrial distribution peers. Read the full article on Seeking AlphaNarrative Update • Jul 31
WSO: Future Returns Will Reflect Margin Recovery And Seasonal Demand Support
Watsco's analyst price target has been revised lower by about $13 to reflect updated views on gross margin pressure following recent earnings, partly balanced by expectations that upcoming seasonal demand and prior equipment volume trends could support results. Analyst Commentary Recent research on Watsco highlights a mix of optimism on long term demand drivers and caution around near term execution, especially on pricing and margins.Narrative Update • Jul 15
WSO: Higher Rates And Housing Risk Will Balance Dividend And Expansion Potential
The analyst price target for Watsco has been revised from $370 to $385, reflecting updated views from recent research in which analysts highlight potential positive volume trends and pricing support over the coming years, while also noting that higher interest rates could limit how attractive the stock appears relative to its dividend yield. Analyst Commentary Recent research on Watsco presents a mixed picture, with some firms lifting price targets while keeping ratings neutral.Narrative Update • Jul 01
WSO: Higher Rates And Rich Multiple Will Pressure Dividend Appeal
The analyst fair value estimate for Watsco has increased from $362 to $370, as analysts factor in expectations for healthier volume trends, pricing support, and a higher assumed future P/E multiple. They also acknowledge that higher interest rates could weigh on housing activity and reduce the appeal of its dividend yield.Analysis Article • Jun 21
Watsco (WSO) Stock Could Be 5.3% Undervalued as Momentum Meets Valuation Questions
Recent trading in Watsco (WSO) has put the air conditioning and heating distributor back on investor watchlists, as the stock’s returns over the past month and past 3 months stand out in a mixed market. See our latest analysis for Watsco. At a share price of $401.04, Watsco’s recent momentum, including a 1 month share price return of 6.9% and 3 month share price return of 4.1%, contrasts with a 1 year total shareholder return that is down 2.0%, even though the 5 year total shareholder return...Narrative Update • Jun 17
WSO: Sunbelt Expansion And Dividend Yield Will Support Future P/E Rebound
Analysts held their fair value estimate for Watsco at $485.00 while updating assumptions around growth, margins, and future P/E, citing a mix of expected positive volume trends, ongoing price and mix support in 2027, and the potential for higher interest rates to weigh on housing activity and the appeal of the dividend yield. Analyst Commentary Recent Street research on Watsco highlights a split view, with some bullish analysts pointing to volume growth and pricing support, while others flag interest rates and housing activity as key watchpoints for the stock.Narrative Update • Jun 02
WSO: Pullback Will Set Up Fuller Future P/E And Dividend Appeal
Analysts have lifted their Watsco fair value estimate by $10 to $485, citing updated assumptions on revenue growth, profit margins, and future P/E that are consistent with recent price target increases and the view that the stock's recent pullback was an overreaction. Analyst Commentary Bullish analysts are pointing to the recent US$10 price target lift to US$485 as a signal that their core assumptions on revenue, margins, and future P/E still support upside from current levels, even after the stock's pullback.Analysis Article • May 16
Watsco's (NYSE:WSO) Weak Earnings May Only Reveal A Part Of The Whole Picture
Last week's earnings announcement from Watsco, Inc. ( NYSE:WSO ) was disappointing to investors, with a sluggish profit...Narrative Update • May 06
WSO: Future Returns Will Reflect Peer Multiple Support And Home Depot Risks
Analysts have nudged the Watsco price target higher by about $8 to roughly $424, citing updated assumptions for revenue growth, profit margins and peer valuations, even as they apply a slightly higher discount rate and a lower future P/E multiple. Analyst Commentary Recent Street research around Watsco centers on valuation resets and how the stock trades relative to peers, especially after updates around large retail partners.Narrative Update • Apr 21
WSO: Home Depot Deal Uncertainty Will Pressure Rich Dividend-Focused Sentiment
Analysts have raised their price targets on Watsco to a range of $400 to $425, reflecting updated assumptions on discount rates, modestly higher revenue growth, and slightly stronger profit margins, while some see the recent pullback as an overreaction to the Home Depot deal. Analyst Commentary Recent commentary around Watsco has centered on how the Home Depot agreement and shifting peer valuations filter into expectations for the stock.Narrative Update • Apr 06
WSO: Home Depot Partnership Reaction And Dividend Policy Will Shape Future Sentiment
Watsco's analyst price target has moved from an implied fair value of $335.92 to $362.00, as analysts factor in higher peer valuations, updated discount rates and P/E assumptions, and recent commentary that the 9% pullback following the Home Depot deal may have been an overreaction. Analyst Commentary Recent research has centered on how Watsco's valuation compares with peers and how to interpret the share move following the Home Depot partnership announcement.Narrative Update • Mar 23
WSO: Future Upside Will Emerge As Peer Multiple Support Strengthens
Analysts have lifted the Watsco price target by about $8, citing higher peer valuations and updated assumptions on growth, margins, discount rate, and future P/E as the main drivers of the change. Analyst Commentary Recent Street research on Watsco shows a mix of optimism and caution, with several price targets adjusted and ratings held at Neutral.Narrative Update • Mar 09
WSO: Peer Repricing And Higher Dividend Will Support Fuller Future P/E Multiple
Analysts have raised their price targets on Watsco to a range of about $400 to $425, citing higher peer valuations and updated assumptions on discount rate, revenue growth, profit margin and future P/E in their models. Analyst Commentary Recent research updates on Watsco highlight a mix of views, with some price targets raised into the $400 to $425 range and others trimmed.Narrative Update • Feb 23
WSO: Peer Repricing And Dividend Increase Will Support Fuller Future P/E Multiple
Narrative Update on Watsco Our analyst price target for Watsco has been revised to $475 from $450. This reflects updated assumptions on growth, margins, and future P/E in the context of recent Street price target moves, where analysts have adjusted their views while citing shifts in peer valuations.Narrative Update • Feb 09
WSO: Mixed Street Views Will Shape Future P/E And Margin Expectations
Narrative Update Overview The updated analyst price target for Watsco reflects offsetting moves, with one firm lifting its target by $10 and another cutting by $90, as analysts reassess the company’s revenue growth, margins, discount rate, and assumed future P/E multiple. Analyst Commentary Recent research on Watsco reflects a split view, with some bullish analysts focusing on upside potential while others lean more cautious.Narrative Update • Jan 25
WSO: Mixed Street Views Will Set Stage For Future Premium P/E
Analysts now set their fair value estimate for Watsco at $450, down $10 from $460. This reflects updated views on its long term P/E assumption, modest tweaks to revenue growth and margin forecasts, and the mixed shifts in recent price targets from firms on the Street.Narrative Update • Jan 11
WSO: Softer HVAC Surveys May Set Stage For Future Rebound
Analysts have trimmed their fair value estimate for Watsco to about $460 from around $550, citing softer HVAC survey readings that point to potential earnings pressure over the next couple of quarters and a less robust outlook for revenue growth and margins. At the same time, they are applying a higher discount rate and assuming a richer future P/E multiple.Narrative Update • Dec 26
WSO: Long-Term Upside Will Emerge As Southern Demand Headwinds Ease
Analysts modestly lowered their price target on Watsco to approximately $406.60 per share from prior expectations of stronger upside, citing softer HVAC demand, rising earnings risk over the next two quarters, and tighter profit margins, despite a slightly lower discount rate and a higher assumed future valuation multiple. Analyst Commentary Recent commentary from Street research has turned more cautious on Watsco, with sentiment shifting toward a wait and see stance ahead of upcoming quarterly results.Narrative Update • Dec 12
WSO: Long-Term Fundamentals Will Outweigh Near-Term Southern Demand And Earnings Pressures
Analysts have trimmed their price target on Watsco by about 1 percent, or roughly $2. This reflects a slightly higher discount rate and modestly lower fair value assumptions amid increased near term earnings risk.Narrative Update • Nov 28
WSO: Long-Term Fundamentals Will Offset Near-Term Demand Weakness In South
Analysts have lowered their fair value price target for Watsco from $415.60 to $408.90. This change is attributed to ongoing demand risks and softer earnings projections reflected in recent research updates.Analysis Article • Nov 11
Watsco, Inc. Just Missed Earnings - But Analysts Have Updated Their Models
Watsco, Inc. ( NYSE:WSO ) just released its latest quarterly report and things are not looking great. Results look to...Narrative Update • Nov 09
WSO: Market Position And Efficiency Initiatives Will Support Long-Term Upside
Analysts have lowered their price target for Watsco from $437.80 to $415.60. They cite concerns over softer HVAC demand and increased earnings risk in the coming quarters.Narrative Update • Oct 26
Earnings Risk And Weaker Demand Trends Will Shape Future Outlook
Analysts have lowered their price target for Watsco, reducing it from $445 to $437.80. They cite recent survey data that signals weaker demand and a more challenging near-term outlook for the company.Narrative Update • Oct 12
A2L Transition And HVAC Replacement Will Strengthen Future Prospects
Narrative Update on Watsco Price Target Analysts have lowered their price target for Watsco, reducing it from $450 to $425. They cite expectations of slower profit margin growth and slightly lower fair value estimates, even though there are improved revenue growth projections and a marginally lower discount rate.Analysis Article • Sep 29
Why You Should Care About Watsco's (NYSE:WSO) Strong Returns On Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...Narrative Update • Sep 28
A2L Transition And HVAC Replacement Will Strengthen Future Prospects
The decrease in Watsco’s consensus analyst price target is primarily driven by a modest reduction in its future P/E multiple, with fair value now set at $453.40. Valuation Changes Summary of Valuation Changes for Watsco The Consensus Analyst Price Target has fallen slightly from $464.45 to $453.40.Narrative Update • Sep 13
A2L Transition And HVAC Replacement Will Strengthen Future Prospects
Watsco’s consensus Analyst Price Target saw a marginal decrease, reflecting minimal changes in both the company’s future P/E and discount rate, with fair value moving slightly from $468.64 to $464.45. What's in the News Watsco, Inc.Seeking Alpha • Mar 07
Watsco Is Primed For A Growth Acceleration, And I'm Buying More
Summary Watsco's Q4 results were exceptional, with record sales, expanded margins, and new customer growth, signaling strong future growth potential. The company benefits from long-term tailwinds, regulatory changes, and a strong moat, making it well-positioned for sustained demand and continued market share gains. Watsco's dividend increase by 11% and robust free cash flow growth underscore its commitment to delivering shareholder value and confidence in future performance. Despite potential risks like tariffs and economic uncertainty, Watsco's strategic positioning and operating leverage make it a buy for long-term investors. Read the full article on Seeking AlphaSeeking Alpha • Oct 31
Watsco: Primed For Market-Beating Returns Following Q3 Earnings
Summary Watsco reported mixed Q3 results, but sees a stabilizing HVAC equipment market and reason for optimism. The company expects pricing and volumes to increase due to new regulatory requirements. Watsco's moat is strong, and the company continues to take market share. The stock appears undervalued thanks to WSO's long-term free cash flow growth potential. I rate WSO as a buy. Read the full article on Seeking AlphaSeeking Alpha • Sep 21
Watsco: Good Growth Prospects, But Premium Valuation Limits Upside
Summary Watsco, Inc. is poised for growth due to technology investments, e-commerce expansion, and favorable HVAC/R industry trends driven by regulatory mandates and tax credits. Despite near-term margin headwinds from A2L refrigerant transition, long-term margins should benefit from higher-efficiency products and SG&A cost management. The stock trades at a significant premium, suggesting growth prospects are already priced in, leading to a neutral rating. Read the full article on Seeking AlphaShareholder Returns
| WSO | US Trade Distributors | US Market | |
|---|---|---|---|
| 7D | -0.8% | 0.1% | 0.5% |
| 1Y | -20.0% | 5.2% | 12.0% |
Return vs Industry: WSO underperformed the US Trade Distributors industry which returned 5.2% over the past year.
Return vs Market: WSO underperformed the US Market which returned 12% over the past year.
Price Volatility
| WSO volatility | |
|---|---|
| WSO Average Weekly Movement | 5.6% |
| Trade Distributors Industry Average Movement | 6.4% |
| Market Average Movement | 6.8% |
| 10% most volatile stocks in US Market | 15.2% |
| 10% least volatile stocks in US Market | 2.9% |
Stable Share Price: WSO has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: WSO's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1956 | 7,000 | Albert Nahmad | www.watsco.com |
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It 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. The company 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.
Watsco, Inc. Fundamentals Summary
| WSO fundamental statistics | |
|---|---|
| Market cap | US$11.82b |
| Earnings (TTM) | US$443.48m |
| Revenue (TTM) | US$7.28b |
27.1x
P/E Ratio1.7x
P/S RatioIs WSO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WSO income statement (TTM) | |
|---|---|
| Revenue | US$7.28b |
| Cost of Revenue | US$5.28b |
| Gross Profit | US$2.00b |
| Other Expenses | US$1.56b |
| Earnings | US$443.48m |
Last Reported Earnings
Jun 30, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 11.49 |
| Gross Margin | 27.51% |
| Net Profit Margin | 6.09% |
| Debt/Equity Ratio | 0% |
How did WSO perform over the long term?
See historical performance and comparisonDividends
4.2%
Current Dividend Yield105%
Payout RatioCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/09/18 21:40 |
| End of Day Share Price | 2026/09/18 00:00 |
| Earnings | 2026/06/30 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Watsco, Inc. is covered by 30 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| David Manthey | Baird |
| Scott Davis | Barclays |
| Christopher Dankert | D.A. Davidson & Co. |