Analyst Ratings for Watsco Inc. (WSO)

Updated: 2017-07-28

Watsco Inc. (NYSE:WSO) was awarded an average rating of Overweight from investment analysts following the stock. About 30 days ago, WSO was issued an average rating of Overweight.

Of the 14 analysts covering the stock, 5 gave it a buy rating, 1 gave an overweight rating, 7 issued a hold rating, 0 gave an underweight rating, and 1 issued a sell rating. Today, there are 0 more analysts optimistic about the company future as compared with 90 days ago. Over the same time period, there has been an decrease of 1 in the number of analysts with a negative outlook on the stock.

WSO was given price targets by several analysts. The most optimistic analyst gave a price target of 180, implying a possible profit of 20.35 percent. The most pessimistic price target was 139, which equates to a potential downside of -7.06 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of 0.76 percent. That number becomes 1.53 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised upwards by 1.06 percent, as compared to a month ago. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 1.06 percent.

Another thing investors often look at is the level of agreement among analysts' revisions. 4 analysts have revised their quarterly estimates upwards in the past 30 days, which can be compared to the 4 analysts that decreased their estimates. During this time, 6 analysts made positive revisions in their estimates for this fiscal year's earnings, while 3 analysts decreased their estimates.

Analysts estimate earnings of WSO to grow at a rate of 7.45 percent. Another measure frequently examined by investors is the PEG ratio. Investors like to see smaller values for the PEG ratio, as that can indicate whether the high price level of a stock is warranted by high growth. Many investors consider PEG ratios between 0 and 1 as preferrable, even though it may be more relevant to compare the ratio to that of a firm's competitors. WSO has a PEG ratio of 3.78.

WSO has traded between a high of 159.55 and a low of 128.60 over the past year. Today's price is 16.3 percent above the 52-week low, and below the high by 6.26 percent. WSO has a P/E ratio of 28.14. Investors typically compare the P/E ratio to a company's peers in the industry. The WSO value stock report compares WSO to some of its peers using value stock charts. The stock has a market capitalization of $5.37 billion. WSO will post this quarters earnings in days, on 0000-00-00.