Watsco, Inc. (WSO)

Watsco's stock has experienced fluctuations over the past six months. As of January 26, 2026, its market cap was $15.412 billion, showing a 14.77% increase over 30 days but a 21.61% loss over 12 months. On October 29, 2025, Q3 2025 EPS was reported at $3.98, missing expectations by 6.57%. Truist Financial Corp increased its stake in Watsco by 89.2% in Q3 2025. Analysts have an average "Hold" rating with a target price of $404.14. Morgan Stanley lowered its price target from $460.00 to $370.00 on January 14, 2026, and Zacks Research cut Watsco to a "strong sell" rating on January 13, 2026. The stock price jumped 3.1% on February 6, 2026. The next earnings report is expected on February 17, 2026, with an EPS projection of $1.91, and a $3.00 quarterly dividend was declared on January 2, 2026.

Demand for Watsco's products and services is highly seasonal, with the highest demand in the second and third calendar quarters due to warmer months. The first and fourth quarters are highly seasonal, and the company builds inventory for the upcoming selling season during the first quarter.

Watsco, Inc. is the largest distributor of air conditioning, heating, and refrigeration (HVAC/R) equipment and related parts and supplies in the Americas, operating within the Industrials sector. The company distributes through a network of branches and an e-commerce platform, providing a vast inventory to HVAC/R contractors and service providers. Its major products include residential central air conditioners, furnaces, commercial air conditioning and heating equipment, specialized equipment and parts, supplies, products for the commercial refrigeration market, and plumbing and bathroom remodeling supplies.

Watsco operates a distribution network with over 700 locations across the United States, Canada, Mexico, and Puerto Rico, with additional market coverage on an export basis to parts of Latin America and the Caribbean. This allows Watsco to serve over 375,000 active contractors and dealers annually.

Watsco has a reputation for strong performance and strategic growth, celebrating a record-setting year in 2024 with sales, gross profit, and operating cash flow reaching their highest levels ever. The company's 35-year total shareholder return was 19% as of December 31, 2024. The company's reputation is bolstered by its entrepreneurial culture, debt-free balance sheet, and investments in technology. A significant event impacting Watsco's operations has been the regulatory transition to next-generation HVAC equipment incorporating A2L refrigerants, which began in 2025. In 2024, Watsco focused on regaining sales and market share related to one of its primary OEMs after product and supply chain disruptions impacted customer relationships in 2023.

Watsco, Inc. is a publicly traded company with ownership heavily weighted toward institutional investors, including BlackRock, Inc., Vanguard Group Inc, and Fmr Llc. Individual investors also hold shares, and insider transactions show buys and sells by directors and executives.