WSO Stock Analysis: Buy, Sell, or Hold?
WSO - Watsco, Inc.
$318.01
8.71 (2.82%)
▲
5d:
-12.72%
30d:
-21.42%
90d:
-25.8%
WAIT
LOW Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Jul 29, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
⏸️ WAIT FOR STABILIZATION: WSO is down 12.7% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
⏸️ WAIT FOR STABILIZATION: WSO is down 12.7% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$454.00
Based on 6.5% avg growth
INTRINSIC VALUE TODAY
$281.90
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 $318.01, which is considered oversold relative to its 30-day fair value range of $363.77 to $405.97. From a valuation perspective, the stock is trading at a discount (Forward PE: 24.0) compared to its historical average (27.8). Remarkably, the market is currently pricing in an annual earnings decline of 4.8% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, WSO is in a downtrend. Immediate support is located at $300.66, while resistance sits at $375.52.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $382.20 (+20.2%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, WSO is in a downtrend. Immediate support is located at $300.66, while resistance sits at $375.52.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $382.20 (+20.2%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$363.77 -
$405.97
Company Quality Score
41/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 20.2% below Wall St target ($382.20)
- WARNING: Recommendation downgraded due to -12.7% 5-day decline - wait for stabilization
Trading Range Analysis
30-Day Trading Range
$363.77 -
$405.97
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$300.66
Resistance Level
$375.52
Current Trend
Downtrend
Technical data as of
Aug 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
23.98
Wall Street Target
$382.20
(+20.2%)
Revenue Growth (YoY)
2.1%
Earnings Growth (YoY)
-11.7%
Profit Margin
6.5%
Valuation Discount vs History
-4.8% cheaper
PE vs Historical
24.0 vs 27.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.8%
(market-implied from PE analysis)
1-Year Target
$302.75
(-5%)
2-Year Target
$288.21
(-9%)
3-Year Target
$274.38
(-14%)
3-Yr Target (if PE normalizes)
(PE: 24→28)
$318.14
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 24.0, Growth: 9.0%)
$411.33
(+29%)
Base:
(SPY PE: 20.7, Growth: 9.0%)
$355.64
(+12%)
Bear:
(PE: 17.6, Growth: 9.0%)
$302.29
(-5%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (24x PE) as earnings recover.
Trailing PE: 26.24 | Current EPS (TTM): $11.84
Bull Case
$386.29
(+25%)
Analyst growth 13.0%, PE expands to 28.9
Base Case
$351.17
(+14%)
Market implied 13.0%, PE stable at 26.2
Bear Case
$211.30
(-32%)
Severe decline -20.0%, PE contracts to 22.3
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 24.0 to 27.8
Stabilization Target:
$368.73
(+15.9%)
PE Expansion Potential:
+15.9%
Share & Embed Analysis
Last updated: August 03, 2026 5:17 PM ET
Data refreshes hourly during market hours. Next update: 6:17 PM
Data refreshes hourly during market hours. Next update: 6:17 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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