WSO Stock Analysis: Buy, Sell, or Hold?
WSO - Watsco, Inc.
$404.71
-2.91 (-0.71%)
▼
5d:
-1.81%
30d:
+11.23%
90d:
+7.66%
BUY
MODERATE Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Jul 29, 2026
24d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: WSO shows positive signals but monitor for confirmation. Market pricing in 1.9% growth. Moderate conviction.
💡 BUY OPPORTUNITY: WSO shows positive signals but monitor for confirmation. Market pricing in 1.9% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$462.23
Based on 6.2% avg growth
INTRINSIC VALUE TODAY
$287.01
Trading above historical range
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 $404.71, which is considered extended relative to its 30-day fair value range of $369.86 to $403.02. The stock's valuation (Forward PE: 29.6) is in line with its historical norms (27.9). At these levels, the market is pricing in 1.9% annual earnings growth.
Technical Outlook: Technically, WSO is showing sideways momentum. The price is approaching resistance at $392.53. 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 (60/100), 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 showing sideways momentum. The price is approaching resistance at $392.53. 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 (60/100), 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
Historical Trading Range
$369.86 -
$403.02
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($422.90)
- BULLISH: Expecting earnings turnaround to 1.9% growth with 0.1% revenue growth
Trading Range Analysis
30-Day Trading Range
$369.86 -
$403.02
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$355.14
Resistance Level
$392.53
Current Trend
Sideways
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
29.55
Wall Street Target
$422.90
(+4.5%)
Revenue Growth (YoY)
0.1%
Earnings Growth (YoY)
-3.1%
Profit Margin
6.9%
Valuation Premium vs History
+1.9% premium
PE vs Historical
29.6 vs 27.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.9%
(market-implied from PE analysis)
1-Year Target
$412.40
(+2%)
2-Year Target
$420.24
(+4%)
3-Year Target
$428.22
(+6%)
3-Yr Target (if PE normalizes)
(PE: 30→28)
PE COMPRESSION
$404.26
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 29.6, Growth: 8.4%)
$516.10
(+28%)
Base:
(SPY PE: 21.8, Growth: 8.4%)
$380.34
(-6%)
Bear:
(PE: 18.5, Growth: 8.4%)
$323.29
(-20%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (33x PE), but valuation improves significantly next year (30x PE) as earnings recover.
Trailing PE: 33.44 | Current EPS (TTM): $12.19
Bull Case
$503.70
(+25%)
Analyst growth 12.3%, PE expands to 36.8
Base Case
$457.91
(+13%)
Market implied 12.3%, PE stable at 33.4
Bear Case
$277.18
(-32%)
Severe decline -20.0%, PE contracts to 28.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 03, 2026 7:13 PM ET
Data refreshes hourly during market hours. Next update: 8:13 PM
Data refreshes hourly during market hours. Next update: 8:13 PM
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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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