Watsco Inc Stock Buy Hold or Sell Recommendation
| WSO Stock | USD 401.93 2.01 0.50% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Watsco Inc is 'Strong Hold'. Macroaxis provides Watsco buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Watsco positions. The advice algorithm takes into account all of Watsco's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Watsco's buy or sell advice are summarized below:
Real Value 390.17 | Target Price 375.09 | Hype Value 401.93 | Market Value 401.93 | Naive Value 388.47 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Watsco Inc given historical horizon and risk tolerance towards Watsco. When Macroaxis issues a 'buy' or 'sell' recommendation for Watsco Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
Watsco |
Execute Watsco Buy or Sell Advice
The Watsco recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Watsco Inc. Macroaxis does not own or have any residual interests in Watsco Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Watsco's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Watsco Trading Alerts and Improvement Suggestions
| Watsco Inc generated a negative expected return over the last 90 days | |
| Watsco Inc is unlikely to experience financial distress in the next 2 years | |
| Watsco Inc has a strong financial position based on the latest SEC filings | |
| Over 99.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from MacroaxisInsider: Disposition of tradable shares by Brian Keeley of Watsco subject to Rule 16b-3 |
Watsco Returns Distribution Density
The distribution of Watsco's historical returns is an attempt to chart the uncertainty of Watsco's future price movements. The chart of the probability distribution of Watsco daily returns describes the distribution of returns around its average expected value. We use Watsco Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Watsco returns is essential to provide solid investment advice for Watsco.
| Mean Return | 0.03 | Value At Risk | -2.84 | Potential Upside | 2.48 | Standard Deviation | 1.81 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Watsco historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Watsco Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Watsco is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Watsco Inc backward and forwards among themselves. Watsco's institutional investor refers to the entity that pools money to purchase Watsco's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2023-12-31 | 622.8 K | Markel Group Inc | 2023-12-31 | 556.8 K | Wells Fargo & Co | 2023-12-31 | 536 K | Goldman Sachs Group Inc | 2023-12-31 | 510.1 K | Citadel Advisors Llc | 2023-09-30 | 492.2 K | Mitsubishi Ufj Trust & Banking Corp | 2023-12-31 | 445.3 K | Bank Of New York Mellon Corp | 2023-12-31 | 418.7 K | Jpmorgan Chase & Co | 2023-12-31 | 409.8 K | Barclays Plc | 2023-12-31 | 400.3 K | Blackrock Inc | 2023-12-31 | 4.1 M | Vanguard Group Inc | 2023-12-31 | 3.3 M |
Watsco Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (15.5M) | 139.9M | (243.7M) | (259.9M) | 64.6M | 67.9M | |
| Change In Cash | (8.4M) | 71.6M | (27.8M) | 29.2M | 62.6M | 65.7M | |
| Free Cash Flow | 319.3M | 518.0M | 325.5M | 538.2M | 525.6M | 551.9M | |
| Depreciation | 24.5M | 25.9M | 28.1M | 31.7M | 35.1M | 36.8M | |
| Other Non Cash Items | (2.6M) | (4.0M) | (6.9M) | (9.0M) | 123.6M | 129.8M | |
| Dividends Paid | 241.4M | 265.7M | 294.5M | 332.4M | (382.6M) | (363.5M) | |
| Capital Expenditures | 16.4M | 16.3M | 24.1M | 33.8M | 35.5M | 18.9M | |
| Net Income | 295.8M | 323.2M | 498.7M | 703.7M | 499.4M | 524.3M | |
| End Period Cash Flow | 74.5M | 146.1M | 118.3M | 147.5M | 210.1M | 220.6M | |
| Change Receivables | 8.5M | (3.6M) | (130.4M) | (60.2M) | (54.1M) | (51.4M) | |
| Net Borrowings | 19.3M | (157.3M) | 89.0M | (35.6M) | (32.1M) | (30.5M) | |
| Change To Netincome | 15.7M | 18.2M | 24.4M | 33.3M | 29.9M | 18.6M | |
| Investments | (4.9M) | (16.3M) | (148.6M) | (33.8M) | (35.5M) | (37.3M) |
Watsco Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Watsco or Trading Companies & Distributors sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Watsco's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Watsco stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.09 | |
β | Beta against NYSE Composite | 1.74 | |
σ | Overall volatility | 1.79 | |
Ir | Information ratio | -0.02 |
Watsco Volatility Alert
Watsco Inc currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of -0.09. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Watsco's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Watsco's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Watsco Fundamentals Vs Peers
Comparing Watsco's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Watsco's direct or indirect competition across all of the common fundamentals between Watsco and the related equities. This way, we can detect undervalued stocks with similar characteristics as Watsco or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Watsco's fundamental indicators could also be used in its relative valuation, which is a method of valuing Watsco by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Watsco to competition |
| Fundamentals | Watsco | Peer Average |
| Return On Equity | 0.26 | -0.31 |
| Return On Asset | 0.13 | -0.14 |
| Profit Margin | 0.07 % | (1.27) % |
| Operating Margin | 0.06 % | (5.51) % |
| Current Valuation | 15.36 B | 16.62 B |
| Shares Outstanding | 33.93 M | 571.82 M |
| Shares Owned By Insiders | 0.74 % | 10.09 % |
| Shares Owned By Institutions | 99.26 % | 39.21 % |
| Number Of Shares Shorted | 3.86 M | 4.71 M |
| Price To Earning | 36.34 X | 28.72 X |
| Price To Book | 7.40 X | 9.51 X |
| Price To Sales | 2.27 X | 11.42 X |
| Revenue | 7.28 B | 9.43 B |
| Gross Profit | 2.03 B | 27.38 B |
| EBITDA | 806.51 M | 3.9 B |
| Net Income | 499.37 M | 570.98 M |
| Cash And Equivalents | 147.5 M | 2.7 B |
| Cash Per Share | 3.66 X | 5.01 X |
| Total Debt | 404.79 M | 5.32 B |
| Debt To Equity | 0.14 % | 48.70 % |
| Current Ratio | 2.57 X | 2.16 X |
| Book Value Per Share | 60.67 X | 1.93 K |
| Cash Flow From Operations | 561.11 M | 971.22 M |
| Short Ratio | 9.87 X | 4.00 X |
| Earnings Per Share | 13.67 X | 3.12 X |
| Price To Earnings To Growth | 3.26 X | 4.89 X |
| Target Price | 416.19 | |
| Number Of Employees | 7.35 K | 18.84 K |
| Beta | 0.87 | -0.15 |
| Market Capitalization | 16 B | 19.03 B |
| Total Asset | 3.78 B | 29.47 B |
| Retained Earnings | 1.18 B | 9.33 B |
| Working Capital | 1.68 B | 1.48 B |
Note: Disposition of tradable shares by Brian Keeley of Watsco subject to Rule 16b-3 [view details]
Watsco Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Watsco . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 0.0204 | |||
| Daily Balance Of Power | (0.24) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 405.69 | |||
| Day Typical Price | 404.44 | |||
| Market Facilitation Index | 8.38 | |||
| Price Action Indicator | (4.76) | |||
| Period Momentum Indicator | (2.01) |
About Watsco Buy or Sell Advice
When is the right time to buy or sell Watsco Inc? Buying financial instruments such as Watsco Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 360.5M | 379.1M | 404.8M | 425.0M | Total Assets | 3.1B | 3.5B | 3.8B | 4.0B |
Use Investing Ideas to Build Portfolios
In addition to having Watsco in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Warren Buffett Holdings
A long-term portfolio of publicly-traded stocks on US exchanges that are owned by Warren Buffett's holding company Berkshire Hathaway. The Warren Buffett Holdings theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Warren Buffett Holdings Theme or any other thematic opportunities.
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Check out Watsco Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Complementary Tools for Watsco Stock analysis
When running Watsco's price analysis, check to measure Watsco's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Watsco is operating at the current time. Most of Watsco's value examination focuses on studying past and present price action to predict the probability of Watsco's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Watsco's price. Additionally, you may evaluate how the addition of Watsco to your portfolios can decrease your overall portfolio volatility.
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Is Watsco's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Watsco. If investors know Watsco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Watsco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.41) | Dividend Share 9.8 | Earnings Share 13.67 | Revenue Per Share 200.07 | Quarterly Revenue Growth 0.014 |
The market value of Watsco Inc is measured differently than its book value, which is the value of Watsco that is recorded on the company's balance sheet. Investors also form their own opinion of Watsco's value that differs from its market value or its book value, called intrinsic value, which is Watsco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Watsco's market value can be influenced by many factors that don't directly affect Watsco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.