Watsco, Inc. (WSO-B) Stock Analysis
Industrials · Industrial Distribution
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $385.00 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Earnings estimates trending DOWN; Weak overall score: 4.3/10.
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
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $385.00 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Earnings estimates trending DOWN; Weak overall score: 4.3/10. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.3/10, moderate 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
Key Metrics
Quality Signals
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
5 floor-breakers·1 ceiling hit
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
Negative sentiment — recent news tone and/or analyst downgrades drag the composite below neutral.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.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. Momentum 2.5/10 is below the 5.0 floor at $385.00 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Earnings estimates trending DOWN; Weak overall score: 4.3/10. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $342.32. Score 4.3/10, moderate confidence.
Take-profit target: $395.75 (+13.1% upside). Prior stop was $342.32. Stop-loss: $342.32.
Earnings estimates trending DOWN; Weak overall score: 4.3/10; Weak growth.
Watsco, Inc. trades at a P/E of 28.7 (forward N/A). TrendMatrix value score: 5.1/10. Verdict: Sell.
22 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.