WSO Stock Analysis: Buy, Sell, or Hold?
WSO - Watsco, Inc.
$310.80
-1.14 (-0.37%)
▼
5d:
-0.34%
30d:
-14.15%
90d:
-17.16%
HOLD
LOW Confidence
Analysis Updated: Aug 24, 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:
📊 HOLD: WSO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: WSO shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$447.53
Based on 6.3% avg growth
INTRINSIC VALUE TODAY
$277.88
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 $310.80, which is considered slightly low relative to its 30-day fair value range of $309.26 to $359.02. From a valuation perspective, the stock is trading at a discount (Forward PE: 23.5) compared to its historical average (27.5). Remarkably, the market is currently pricing in an annual earnings decline of 5.1% 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 $307.34. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: WSO scores 85/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $378.70 (+21.8%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, WSO is in a strong downtrend. The price is currently testing key support at $307.34. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: WSO scores 85/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $378.70 (+21.8%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$309.26 -
$359.02
Company Quality Score
60/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
90.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (85/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 21.8% below Wall St target ($378.70)
- CAUTION: Bottoming setup, but lagging the sector by 14% over 20 days — wait for relative strength
Trading Range Analysis
30-Day Trading Range
$309.26 -
$359.02
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$307.34
Resistance Level
$329.48
Current Trend
Strong Downtrend
Technical data as of
Aug 24, 2026
Fundamental Context
Forward P/E (Next Year Est.)
23.50
Wall Street Target
$378.70
(+21.8%)
Revenue Growth (YoY)
2.1%
Earnings Growth (YoY)
-11.7%
Profit Margin
6.5%
Valuation Discount vs History
-5.1% cheaper
PE vs Historical
23.5 vs 27.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.1%
(market-implied from PE analysis)
1-Year Target
$294.95
(-5%)
2-Year Target
$279.91
(-10%)
3-Year Target
$265.63
(-15%)
3-Yr Target (if PE normalizes)
(PE: 24→28)
$310.90
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 23.5, Growth: 8.5%)
$397.39
(+28%)
Base:
(SPY PE: 20.1, Growth: 8.5%)
$339.11
(+9%)
Bear:
(PE: 17.0, Growth: 8.5%)
$288.24
(-7%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (27x PE), but valuation improves significantly next year (24x PE) as earnings recover.
Trailing PE: 26.73 | Current EPS (TTM): $11.67
Bull Case
$388.94
(+25%)
Analyst growth 13.3%, PE expands to 29.4
Base Case
$353.58
(+14%)
Market implied 13.3%, PE stable at 26.7
Bear Case
$212.12
(-32%)
Severe decline -20.0%, PE contracts to 22.7
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 23.5 to 27.5
Stabilization Target:
$363.76
(+17.0%)
PE Expansion Potential:
+17.0%
Share & Embed Analysis
Last updated: August 24, 2026 9:22 PM ET
Data refreshes hourly during market hours. Next update: 10:22 PM
Data refreshes hourly during market hours. Next update: 10:22 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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