WSO Stock Analysis: Buy, Sell, or Hold?
WSO - Watsco, Inc.
$348.91
1.71 (0.49%)
▲
5d:
-9.44%
30d:
-16.39%
90d:
+0.24%
HOLD
MODERATE Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: Apr 22, 2026
21d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: WSO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: WSO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$520.00
Based on 7.9% avg growth
INTRINSIC VALUE TODAY
$322.88
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 $348.91, which is considered oversold relative to its 30-day fair value range of $376.87 to $413.92. From a valuation perspective, the stock is trading at a discount (Forward PE: 24.5) compared to its historical average (27.7). Remarkably, the market is currently pricing in an annual earnings decline of 4.0% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, WSO is in a strong uptrend. The price is currently testing key support at $340.01. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: WSO has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $415.17 (+19.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, WSO is in a strong uptrend. The price is currently testing key support at $340.01. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: WSO has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $415.17 (+19.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$376.87 -
$413.92
Company Quality Score
51/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
54.8%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($415.17)
- CAUTION: 5-day price weakness (-9.4%) - monitor closely
Fair Price Analysis
30-Day Fair Range
$376.87 -
$413.92
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$340.01
Resistance Level
$392.89
Current Trend
Strong Uptrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
24.49
Wall Street Target
$415.17
(+19.0%)
Revenue Growth (YoY)
-10.0%
Earnings Growth (YoY)
-26.0%
Profit Margin
6.9%
Valuation Discount vs History
-4.0% cheaper
PE vs Historical
24.5 vs 27.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.0%
(market-implied from PE analysis)
1-Year Target
$334.95
(-4%)
2-Year Target
$321.56
(-8%)
3-Year Target
$308.69
(-12%)
3-Yr Target (if PE normalizes)
(PE: 24→28)
$349.11
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 24.5, Growth: 11.8%)
$487.44
(+40%)
Base:
(SPY PE: 22.4, Growth: 11.8%)
$444.79
(+28%)
Bear:
(PE: 19.0, Growth: 11.8%)
$378.07
(+8%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (30x PE), but valuation improves significantly next year (24x PE) as earnings recover.
Trailing PE: 30.49 | Current EPS (TTM): $12.24
Bull Case
$477.82
(+24%)
Analyst growth 16.4%, PE expands to 33.5
Base Case
$434.38
(+13%)
Market implied 16.4%, PE stable at 30.5
Bear Case
$253.80
(-34%)
Severe decline -20.0%, PE contracts to 25.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 24.5 to 27.7
Stabilization Target:
$394.59
(+13.1%)
PE Expansion Potential:
+13.1%
Share & Embed Analysis
Last updated: March 31, 2026 8:10 AM ET
Data refreshes hourly during market hours. Next update: 9:10 AM
Data refreshes hourly during market hours. Next update: 9:10 AM
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Technical Signals Check
Is WSO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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