WSO Stock Analysis: Buy, Sell, or Hold?
WSO - Watsco, Inc.
$387.72
-9.44 (-2.38%)
▼
5d:
+0.76%
30d:
+2.47%
90d:
+0.64%
BUY
MODERATE Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Jul 29, 2026
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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 0.5% growth. Moderate conviction.
💡 BUY OPPORTUNITY: WSO shows positive signals but monitor for confirmation. Market pricing in 0.5% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$463.53
Based on 6.2% avg growth
INTRINSIC VALUE TODAY
$287.82
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 $387.72, which is considered slightly high relative to its 30-day fair value range of $369.15 to $389.97. The stock's valuation (Forward PE: 28.2) is in line with its historical norms (27.8). At these levels, the market is pricing in 0.5% 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
SLIGHTLY HIGH
Historical Trading Range
$369.15 -
$389.97
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
74.8%
All Signals
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($420.70)
- BULLISH: Expecting earnings turnaround to 0.5% growth with 0.1% revenue growth
Trading Range Analysis
30-Day Trading Range
$369.15 -
$389.97
Current vs Trading Range
SLIGHTLY HIGH
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.)
28.23
Wall Street Target
$420.70
(+8.5%)
Revenue Growth (YoY)
0.1%
Earnings Growth (YoY)
-3.1%
Profit Margin
6.9%
Valuation Premium vs History
+0.5% premium
PE vs Historical
28.2 vs 27.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.5%
(market-implied from PE analysis)
1-Year Target
$389.66
(+1%)
2-Year Target
$391.61
(+1%)
3-Year Target
$393.56
(+2%)
3-Yr Target (if PE normalizes)
(PE: 28→28)
PE COMPRESSION
$387.52
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 28.2, Growth: 8.4%)
$493.38
(+27%)
Base:
(SPY PE: 21.8, Growth: 8.4%)
$380.60
(-2%)
Bear:
(PE: 18.5, Growth: 8.4%)
$323.51
(-17%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (33x PE), but valuation improves significantly next year (28x PE) as earnings recover.
Trailing PE: 32.58 | Current EPS (TTM): $12.19
Bull Case
$492.16
(+27%)
Analyst growth 12.7%, PE expands to 35.8
Base Case
$447.42
(+15%)
Market implied 12.7%, PE stable at 32.6
Bear Case
$270.07
(-30%)
Severe decline -20.0%, PE contracts to 27.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 24, 2026 6:49 AM ET
Data refreshes hourly during market hours. Next update: 7:49 AM
Data refreshes hourly during market hours. Next update: 7:49 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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