Watsco, Inc. (WSO) Stock Analysis
Breakout setup
Industrials · Industrial Distribution
Sell if holding. Analyst target reached at $440.21 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3).
Watsco, Inc. and its subsidiaries (collectively, "Watsco," the "Company", or "we," "us," or "our") was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies ("HVAC/R") in the HVAC/R... Read more
Sell if holding. Analyst target reached at $440.21 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3). Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Score 4.4/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.50, earnings proximity 89d clear, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $440.21 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3). Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Prior stop was $409.20. Score 4.4/10, moderate confidence.
Take-profit target: $449.82 (+2.2% upside). Prior stop was $409.20. Stop-loss: $409.20.
Analyst target reached - limited upside remaining; Consecutive earnings misses (3); Weak overall score: 4.4/10.
Watsco, Inc. trades at a P/E of 35.0 (forward 30.0). TrendMatrix value score: 4.0/10. Verdict: Sell.
20 analysts cover WSO with a consensus score of 3.3/5. Average price target: $421.
What does Watsco, Inc. do?Watsco, Inc. and its subsidiaries (collectively, "Watsco," the "Company", or "we," "us," or "our") was incorporated in...
Watsco, Inc. and its subsidiaries (collectively, "Watsco," the "Company", or "we," "us," or "our") was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies ("HVAC/R") in the HVAC/R distribution industry in North America. At December 31, 2025, we operated from 695 locations in 43 U.S.