WSO Stock Analysis: Buy, Sell, or Hold?
WSO - Watsco, Inc.
$386.45
3.03 (0.79%)
▲
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 17, 2026
16d
Get Alerted When WSO Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
💡 BUY OPPORTUNITY: WSO shows positive signals but monitor for confirmation. Market pricing in 2.3% growth. Moderate conviction.
💡 BUY OPPORTUNITY: WSO shows positive signals but monitor for confirmation. Market pricing in 2.3% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$429.78
Based on 5.4% avg growth
INTRINSIC VALUE TODAY
$266.86
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: WSO is currently trading at $386.45, which is considered extended relative to its 30-day fair value range of $350.57 to $384.70. The stock's valuation (Forward PE: 28.9) is in line with its historical norms (27.0). At these levels, the market is pricing in 2.3% annual earnings growth.
Technical Outlook: Technically, WSO is in a downtrend. The price is approaching resistance at $390.82. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: WSO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, WSO is in a downtrend. The price is approaching resistance at $390.82. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: WSO has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$350.57 -
$384.70
Company Quality Score
64/100
(BUY)
Options IV Signal
30th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
62.3%
All Signals
- BEARISH: Price extended above range
- NEUTRAL: Options fairly priced (IV 30th percentile)
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($391.55)
- BULLISH: Expecting earnings turnaround to 2.3% growth with -4.3% revenue growth
Fair Price Analysis
30-Day Fair Range
$350.57 -
$384.70
Current vs Fair Value
EXTENDED
Expected Move (7 Days)
±$18.10
(4.7%)
Support & Resistance Levels
Support Level
$369.85
Resistance Level
$390.82
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
28.94
Wall Street Target
$391.55
(+2.1%)
Revenue Growth (YoY)
-4.3%
Earnings Growth (YoY)
-5.8%
Profit Margin
7.0%
Valuation Premium vs History
+2.3% premium
PE vs Historical
28.9 vs 27.0
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.3%
(market-implied from PE analysis)
1-Year Target
$392.24
(+2%)
2-Year Target
$401.26
(+5%)
3-Year Target
$410.49
(+7%)
3-Yr Target (if PE normalizes)
(PE: 29→27)
PE COMPRESSION
$383.01
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 28.9, Growth: 6.7%)
$465.85
(+22%)
Base:
(SPY PE: 22.3, Growth: 6.7%)
$359.01
(-6%)
Bear:
(PE: 19.0, Growth: 6.7%)
$305.16
(-20%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (30x PE), but valuation improves significantly next year (29x PE) as earnings recover.
Trailing PE: 29.95 | Current EPS (TTM): $12.86
Bull Case
$436.51
(+13%)
Analyst growth 3.0%, PE expands to 32.9
Base Case
$396.83
(+3%)
Market implied 3.0%, PE stable at 30.0
Bear Case
$261.90
(-32%)
Severe decline -20.0%, PE contracts to 25.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 1:04 AM ET
Data refreshes hourly during market hours. Next update: 2:04 AM
Data refreshes hourly during market hours. Next update: 2:04 AM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is WSO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
2
Sells
Net
INSIDERS SELLING
Recent Transactions
Val T. Hoyle
SELL
2025-09-23
Lisa C. McClain
SELL
2025-08-13
Top Rated Industrial Distribution Stocks
Top-rated stocks in Industrial Distribution by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
FERG
Ferguson Plc |
BUY
24 analysts |
$261 | 62 BUY |
|
WCC
WESCO International Inc |
STRONG BUY
13 analysts |
$290 | 65 BUY |
|
CNM
Core & Main Inc |
STRONG BUY
14 analysts |
$61 | 49 HOLD |
|
GWW
WW Grainger Inc |
SELL
20 analysts |
$1071 | 67 BUY |
|
AIT
Applied Industrial Techn… |
STRONG BUY
8 analysts |
$306 | 59 HOLD |
Advanced WSO Option Strategies
Professional options setups generated by AI based on today's WSO price and gamma walls.
