Watsco, Inc. (NYSE:WSO) Receives Average Recommendation of “Hold” from Brokerages

Watsco, Inc. (NYSE:WSO) has received a consensus rating of “Hold” from the nine brokerages that are presently covering the firm, Marketbeat reports. Eight analysts have rated the stock with a hold recommendation and one has issued a buy recommendation on the company. The average 1 year price target among brokers that have covered the stock in the last year is $399.8333.

WSO has been the subject of several recent research reports. JPMorgan Chase & Co. boosted their price target on Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday, February 19th. Stephens upped their target price on Watsco from $475.00 to $485.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 29th. Zacks Research upgraded Watsco from a “strong sell” rating to a “hold” rating in a research note on Wednesday, February 25th. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Mizuho set a $425.00 target price on Watsco in a research note on Wednesday, February 18th.

Trending Headlines about Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks Research raised Watsco’s FY2026 EPS estimate to $12.56 from $12.38, suggesting slightly better expected full-year profitability. Watsco research report
• Positive Sentiment: The firm also increased its Q3 2026 EPS estimate to $4.29 from $4.22 and Q1 2027 EPS to $1.92 from $1.89, pointing to stronger near-term earnings expectations. Watsco research report
• Positive Sentiment: Zacks slightly lifted its Q2 2027 EPS forecast to $4.75 from $4.74, indicating continued stability in the outlook. Watsco research report
• Neutral Sentiment: Zacks kept a Hold rating on Watsco, which does not signal a major change in its overall view of the stock. Watsco research report
• Negative Sentiment: Longer-term estimates were trimmed, including FY2027 EPS to $13.70 from $13.83, FY2028 EPS to $14.93 from $15.63, and Q4 2027 EPS to $2.34 from $2.42, which may have weighed on sentiment. Watsco research report
• Negative Sentiment: Q2 2026 EPS was also cut slightly to $4.25 from $4.27, reinforcing the view that analysts see some earnings moderation ahead. Watsco research report

Watsco Stock Down 1.0%

NYSE:WSO opened at $374.58 on Friday. Watsco has a 12-month low of $323.05 and a 12-month high of $494.94. The firm has a market capitalization of $15.23 billion, a P/E ratio of 31.09 and a beta of 1.12. The stock’s fifty day simple moving average is $399.49 and its 200-day simple moving average is $381.10.

Watsco (NYSE:WSO) last released its quarterly earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.73 by $0.14. The firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.49 billion. Watsco had a return on equity of 15.31% and a net margin of 6.85%.The company’s revenue for the quarter was up .1% on a year-over-year basis. During the same quarter last year, the business posted $1.93 EPS. As a group, equities research analysts expect that Watsco will post 12.73 earnings per share for the current year.

Watsco Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th were issued a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date was Thursday, April 16th. This is an increase from Watsco’s previous quarterly dividend of $3.00. Watsco’s dividend payout ratio (DPR) is 109.54%.

Hedge Funds Weigh In On Watsco

Large investors have recently added to or reduced their stakes in the business. Torren Management LLC purchased a new stake in Watsco in the 4th quarter valued at about $26,000. Bayban purchased a new stake in Watsco in the 4th quarter valued at about $29,000. Bamco Inc. NY purchased a new stake in Watsco in the 4th quarter valued at about $35,000. Laurel Wealth Advisors LLC purchased a new stake in Watsco in the 4th quarter valued at about $37,000. Finally, Quarry LP purchased a new stake in Watsco in the 4th quarter valued at about $37,000. Institutional investors own 89.71% of the company’s stock.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.