Where Watsco Stands With Analysts
In the preceding three months, 5 analysts have released ratings for Watsco (NYSE:WSO), presenting a wide array of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 4 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $376.0, a high estimate of $400.00, and a low estimate of $370.00. A 5.05% drop is evident in the current average compared to the previous average price target of $396.00.
Breaking Down Analyst Ratings: A Detailed Examination
The perception of Watsco by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Stephen Tusa | JP Morgan | Raises | Neutral | $400.00 | $370.00 |
| Stephen Tusa | JP Morgan | Raises | Neutral | $370.00 | $360.00 |
| Christopher Snyder | Morgan Stanley | Lowers | Equal-Weight | $370.00 | $460.00 |
| Damian Karas | UBS | Lowers | Neutral | $370.00 | $390.00 |
| Dan Dolev | Mizuho | Lowers | Neutral | $370.00 | $400.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Watsco. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Watsco compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Watsco's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Watsco's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Watsco analyst ratings.
Get to Know Watsco Better
Watsco is the largest HVAC and refrigeration products distributor in North America with approximately 13% market share. The company primarily operates in the United States (90% of revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada, Latin America, and the Caribbean. The company's customer base comprises more than 120,000 dealers and contractors serving the replacement and new-construction HVAC/R markets for residential and light-commercial applications. As much as 20% of residential HVAC units are distributed through Watsco in any given year. Revenue is approximately 75%-80% residential HVAC and 20%-25% commercial, with relatively small exposure to more complex "applied" solutions.
Understanding the Numbers: Watsco's Finances
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Decline in Revenue: Over the 3M period, Watsco faced challenges, resulting in a decline of approximately -4.31% in revenue growth as of 30 September, 2025. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 7.3%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.41%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.25%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.16, Watsco adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.