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.

A number of analysts gave price targets for WSO. The maximum price target given was 180, implying potential capital gains of 20.35 percent. The most pessimistic analyst gave a price target of 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. The average change in earnings estimates over the last 90 days is 1.53 percent. Meanwhile, fiscal year estimates have been revised upwards by 1.06 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of 1.06 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 4 analysts have revised their quarterly estimates upwards in the past 30 days, while 4 analysts revised their estimates downwards. Also over the last month, 6 analysts increased their estimates for the FY earnings, while 3 analysts made negative revisions to their fiscal year's estimates.

Analysts estimate earnings of WSO to grow at a rate of 7.45 percent. The PEG ratio of a stock is another value frequently studied by investors. A lower PEG ratio is favorable, as that can indicate whether the high price level of a stock is warranted by high growth. Wall Street investors typically prefer a PEG ratio to be smaller than 1, 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.

In the trailing 52-weeks, WSO hit 159.55 at the highest peak, while it's lowest trading point was 128.60. Currently the stock is 16.3 percent higher than its 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 market cap of WSO is $5.37 billion. WSO will post this quarters earnings in days, on 0000-00-00.