Watsco's Class B shares trade with a broken momentum profile — RSI near zero and the price below its 200-day moving average — while the underlying business carries a 7/9 Piotroski score and strong balance sheet, creating a structural tension between poor price action and sound business fundamentals.
Thesis pillars
- Broken Price Momentum—
- Declining Earnings Estimates—
- Solid Balance Sheet Quality—
- +1 more pillar — see the Why tab for full reasoning
Watsco, Inc. (WSO-B) Stock Analysis
Falling Knife setup
Industrials · Industrial Distribution
Sell if holding. Momentum 1.5/10 is below the 5.0 floor at $316.24 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Weak overall score: 4.5/10; Weak growth.
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. Momentum 1.5/10 is below the 5.0 floor at $316.24 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Weak overall score: 4.5/10; Weak growth. Chart setup: Death cross, below all MAs, RSI 9, MACD bearish. Score 4.5/10, moderate confidence.
Passes 6/9 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 and death cross (50MA < 200MA). Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.5/10 is below the 5.0 floor at $316.24 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Weak overall score: 4.5/10; Weak growth. Chart setup: Death cross, below all MAs, RSI 9, MACD bearish. Prior stop was $304.76. Score 4.5/10, moderate confidence.
Take-profit target: $377.30 (+19.3% upside). Prior stop was $304.76. Stop-loss: $304.76.
Weak overall score: 4.5/10; Weak growth; Negative momentum.
Watsco, Inc. trades at a P/E of 28.2 (forward N/A). TrendMatrix value score: 5.2/10. Verdict: Sell.
23 analysts cover WSO-B with a consensus score of 2.8/5.
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.