Watsco (NYSE:WSO) Rating Lowered to “Strong Sell” at Zacks Research

Watsco (NYSE:WSO) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday, Zacks reports. Zacks Research also issued estimates for Watsco’s Q2 2027 earnings at $4.58 EPS, Q3 2027 earnings at $4.58 EPS, Q4 2027 earnings at $2.16 EPS and FY2027 earnings at $13.26 EPS.

A number of other equities research analysts also recently weighed in on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. Robert W. Baird set a $400.00 price objective on shares of Watsco in a research note on Thursday, July 30th. Stephens reiterated an “overweight” rating and set a $485.00 target price on shares of Watsco in a research report on Monday, August 17th. DA Davidson dropped their price target on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a research report on Thursday, July 30th. Finally, Morgan Stanley lifted their price objective on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a report on Friday, July 10th. Two research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Watsco has a consensus rating of “Hold” and a consensus target price of $395.50.

Watsco Stock Up 0.1%

Watsco stock opened at $325.79 on Tuesday. The business has a 50 day moving average price of $324.61 and a two-hundred day moving average price of $369.45. Watsco has a 12 month low of $295.75 and a 12 month high of $459.00. The stock has a market cap of $13.44 billion, a price-to-earnings ratio of 28.26 and a beta of 1.05.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing the consensus estimate of $4.41 by ($0.41). The firm had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.Watsco’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same period in the previous year, the business posted $4.52 EPS. On average, analysts expect that Watsco will post 12.21 earnings per share for the current fiscal year.

Institutional Trading of Watsco

Large investors have recently added to or reduced their stakes in the company. Bayban acquired a new stake in shares of Watsco in the fourth quarter valued at approximately $29,000. Western Wealth Management LLC bought a new position in Watsco during the 1st quarter worth $41,000. Versant Capital Management Inc raised its stake in Watsco by 293.3% in the second quarter. Versant Capital Management Inc now owns 118 shares of the construction company’s stock valued at $49,000 after purchasing an additional 88 shares in the last quarter. Commonwealth Retirement Investments LLC acquired a new position in shares of Watsco in the 4th quarter valued at approximately $44,000. Finally, N.E.W. Advisory Services LLC acquired a new position in Watsco during the second quarter valued at approximately $67,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Company Profile

Watsco, Inc is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and commercial contractors with air conditioners, furnaces, heat pumps, refrigeration systems, ductwork, thermostats, controls, tools, replacement parts and other installation supplies.

Through its distribution network and digital sales platforms, Watsco serves HVAC/R contractors, dealers and other customers primarily across the United States, as well as in Canada and Puerto Rico.