Skip to main content

Watsco, Inc. (WSO-B) Stock Analysis

SellHigh Confidence

Industrials · Industrial Distribution

Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $403.83 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Industrials): -0.7; Weak overall score: 4.6/10.

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

$403.83+10.0% A.UpsideScore 4.6/10#16 of 17 Industrial Distribution
QualityF-score7 / 9FCF yield3.19%
IncomeYield3.27%(5y avg 2.66%)Payout98.44%at-risk
Stop $396.27Target $444.30(resistance)A.R:R 0.0:1

Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $403.83 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Industrials): -0.7; Weak overall score: 4.6/10. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.6/10, high confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.

Thesis

Rewards
No bull case signals
Risks
Sector modifier (Industrials): -0.7
Weak overall score: 4.6/10
Weak growth

Key Metrics

P/E (TTM)33.1
P/E (Fwd)
Mkt Cap$16.4B
EV/EBITDA22.8
Profit Mgn6.9%
ROE18.6%
Rev Growth0.1%
Beta1.10
Dividend3.27%
Rating analysts20

Quality Signals

Piotroski F7/9MoatNarrow

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
1.4
Revenue Growth
2.5

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.6
Value Rank
2.3
Quality Rank
5.7

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Ma Position
5.0
Rsi
9.6
Oversold in uptrend (RSI 6)Volume distribution (falling OBV)Above 200-MA but MA slope flat
GatesMomentum 3.9<4.5A.R:R UPSIDE_EXHAUSTED (upside=0.0%)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
6 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $368.33Resistance $453.37

Price Targets

$396
$444
A.Upside+10.0%
A.R:R0.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 3.9/10 — below 4.5 minimum

Earnings

We could not retrieve earnings history for WSO-B.
The company may be recently listed, pre-revenue, or its beat/miss record wasn't available from our source this run. Earnings signals feed the Growth and Catalyst score dimensions — absence here doesn't affect other dimensions.

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is WSO-B stock a buy right now?

Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $403.83 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Industrials): -0.7; Weak overall score: 4.6/10. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $396.27. Score 4.6/10, high confidence.

What is the WSO-B stock price target?

Take-profit target: $444.30 (+10.0% upside). Prior stop was $396.27. Stop-loss: $396.27.

What are the risks of investing in WSO-B?

Sector modifier (Industrials): -0.7; Weak overall score: 4.6/10; Weak growth.

Is WSO-B overvalued or undervalued?

Watsco, Inc. trades at a P/E of 33.1 (forward N/A). TrendMatrix value score: 4.6/10. Verdict: Sell.

What do analysts say about WSO-B?

20 analysts cover WSO-B with a consensus score of 3.3/5.

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.

Related stocks: DNOW (DNOW Inc.) · REZI (Resideo Technologies, Inc.) · DXPE (DXP Enterprises, Inc.) · FAST (Fastenal Company) · GWW (W.W. Grainger, Inc.)