Watsco (WSO) Stock: Buy, Sell, or Hold?
WSO - Watsco, Inc.
$297.47
-3.68 (-1.22%)
▼
5d:
-6.23%
30d:
-3.71%
90d:
-25.46%
WAIT
LOW Confidence
Analysis Updated: Oct 2, 2026 12:00 AM ET
Earnings: Nov 04, 2026
30d
Get Alerted When WSO Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
📊 MIXED SIGNALS: WSO shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: WSO shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$449.78
Based on 6.4% avg growth
INTRINSIC VALUE TODAY
$279.28
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 $297.47, which is considered oversold relative to its 30-day fair value range of $304.56 to $318.43. From a valuation perspective, the stock is trading at a discount (Forward PE: 22.5) compared to its historical average (27.0). Remarkably, the market is currently pricing in an annual earnings decline of 5.9% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, WSO is in a strong downtrend. The price is currently testing key support at $296.42. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: WSO scores 38/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $379.20 (+27.5%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, WSO is in a strong downtrend. The price is currently testing key support at $296.42. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: WSO scores 38/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $379.20 (+27.5%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$304.56 -
$318.43
Company Quality Score
43/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (38/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 27.5% below Wall St target ($379.20)
- WARNING: Composite score 42/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$304.56 -
$318.43
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$296.42
Resistance Level
$329.58
Current Trend
Strong Downtrend
Technical data as of
Oct 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
22.48
Wall Street Target
$379.20
(+27.5%)
Revenue Growth (YoY)
2.1%
Earnings Growth (YoY)
-11.7%
Profit Margin
6.5%
Valuation Discount vs History
-5.9% cheaper
PE vs Historical
22.5 vs 27.0
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.9%
(market-implied from PE analysis)
1-Year Target
$279.92
(-6%)
2-Year Target
$263.40
(-12%)
3-Year Target
$247.86
(-17%)
3-Yr Target (if PE normalizes)
(PE: 22→27)
$297.69
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.5, Growth: 8.7%)
$381.75
(+28%)
Base:
(SPY PE: 20.4, Growth: 8.7%)
$346.42
(+17%)
Bear:
(PE: 17.3, Growth: 8.7%)
$294.46
(-1%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (22x PE) as earnings recover.
Trailing PE: 25.65 | Current EPS (TTM): $11.74
Bull Case
$373.38
(+26%)
Analyst growth 12.7%, PE expands to 28.2
Base Case
$339.43
(+14%)
Market implied 12.7%, PE stable at 25.7
Bear Case
$204.78
(-31%)
Severe decline -20.0%, PE contracts to 21.8
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 22.5 to 27.0
Stabilization Target:
$357.27
(+20.1%)
PE Expansion Potential:
+20.1%
Share & Embed Analysis
Last updated: October 04, 2026 6:02 AM ET
Data refreshes hourly during market hours. Next update: 7:02 AM
Data refreshes hourly during market hours. Next update: 7:02 AM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is WSO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Industrial Distribution Stocks
Top-rated stocks in Industrial Distribution by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
FERG
Ferguson Plc |
BUY
24 analysts |
$287 | 63 BUY |
|
CNM
Core & Main Inc |
STRONG BUY
14 analysts |
$55 | 55 HOLD |
|
WCC
WESCO International Inc |
STRONG BUY
11 analysts |
$399 | 39 SELL |
|
AIT
Applied Industrial Techn… |
STRONG BUY
8 analysts |
$400 | 43 HOLD |
|
FAST
Fastenal Company |
HOLD
16 analysts |
$49 | 59 HOLD |
