Watsco Inc Stock Performance

WSO Stock  USD 417.92  2.85  0.69%   
On a scale of 0 to 100, Watsco holds a performance score of 15. The firm maintains a market beta of 1.5, which attests to a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Watsco will likely underperform. Please check Watsco's sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change , to make a quick decision on whether Watsco's historical returns will revert.

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Watsco Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Watsco displayed solid returns over the last few months and may actually be approaching a breakup point. ...more

Actual Historical Performance (%)

One Day Return
0.69
Five Day Return
1.83
Year To Date Return
20.32
Ten Year Return
236.46
All Time Return
19.6 K
Forward Dividend Yield
0.0289
Payout Ratio
1.1505
Last Split Factor
3:2
Forward Dividend Rate
12
Dividend Date
2026-01-30
1
Why Is Watsco Down 3.6 percent Since Last Earnings Report
11/28/2025
2
Qualivian Investment Partners Updates on Moodys
12/23/2025
3
Disposition of 2500 shares by Cesar Alvarez of Watsco at 175.07 subject to Rule 16b-3
01/08/2026
4
Published on 2026-01-13 234119 - moha.gov.vn
01/13/2026
5
Insider Trading
01/16/2026
6
Watsco Sees Unusually-High Trading Volume Time to Buy
01/21/2026
7
Applied Industrial Technologies Tops Q2 Earnings Estimates
01/27/2026
 
Watsco dividend paid on 30th of January 2026
01/30/2026
9
What Watsco s Quality Accolades and Giverny Capital Stake Means For Shareholders
02/02/2026
10
Assessing Watsco Valuation After Giverny Capitals New Portfolio Position
02/05/2026
11
Analysts Estimate Watsco to Report a Decline in Earnings What to Look Out for
02/10/2026
12
Watsco Q4 2025 Earnings Preview
02/13/2026
Begin Period Cash Flow210.1 M
Total Cashflows From Investing Activities-290.7 M

Watsco Relative Risk vs. Return Landscape

If you would invest  33,525  in Watsco Inc on November 16, 2025 and sell it today you would earn a total of  8,267  from holding Watsco Inc or generate 24.66% return on investment over 90 days. Watsco Inc is generating 0.3805% of daily returns assuming volatility of 1.9511% on return distribution over 90 days investment horizon. In other words, 17% of stocks are less volatile than Watsco, and above 93% of all equities are expected to generate higher returns over the next 90 days.
  Expected Return   
       Risk  
Considering the 90-day investment horizon Watsco is expected to generate 2.53 times more return on investment than the market. However, the company is 2.53 times more volatile than its market benchmark. It trades about 0.2 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.13 per unit of risk.

Watsco Target Price Odds to finish over Current Price

The tendency of Watsco Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
Current PriceHorizonTarget PriceOdds to move above the current price in 90 days
 417.92 90 days 417.92 
roughly 2.03
Based on a normal probability distribution, the odds of Watsco to move above the current price in 90 days from now is roughly 2.03 (This Watsco Inc probability density function shows the probability of Watsco Stock to fall within a particular range of prices over 90 days) .
Considering the 90-day investment horizon the stock has the beta coefficient of 1.5 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Watsco will likely underperform. Additionally Watsco Inc has an alpha of 0.1951, implying that it can generate a 0.2 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Watsco Price Density   
       Price  

Predictive Modules for Watsco

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Watsco Inc. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Watsco's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
417.89419.84421.79
Details
Intrinsic
Valuation
LowRealHigh
376.13431.77433.72
Details
15 Analysts
Consensus
LowTargetHigh
359.98395.58439.10
Details
Earnings
Estimates (0)
LowProjected EPSHigh
1.441.862.08
Details

Watsco Risk Indicators

For the most part, the last 10-20 years have been a very volatile time for the stock market. Watsco is not an exception. The market had few large corrections towards the Watsco's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Watsco Inc, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Watsco within the framework of very fundamental risk indicators.
α
Alpha over Dow Jones
0.20
β
Beta against Dow Jones1.50
σ
Overall volatility
27.33
Ir
Information ratio 0.12

Watsco Alerts and Suggestions

In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Watsco for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Watsco Inc can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.
Watsco Inc has a strong financial position based on the latest SEC filings
Over 100.0% of the company outstanding shares are owned by institutional investors
On 30th of January 2026 Watsco paid $ 3.0 per share dividend to its current shareholders
Latest headline from seekingalpha.com: Watsco Q4 2025 Earnings Preview

Watsco Price Density Drivers

Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Watsco Stock often depends not only on the future outlook of the current and potential Watsco's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Watsco's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding37.5 M
Cash And Short Term Investments781.9 M

Watsco Fundamentals Growth

Watsco Stock prices reflect investors' perceptions of the future prospects and financial health of Watsco, and Watsco fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Watsco Stock performance.

About Watsco Performance

By examining Watsco's fundamental ratios, stakeholders can obtain critical insights into Watsco's financial health, operational efficiency, and overall profitability. These insights assist in making well-informed investment and management decisions. For example, a high Return on Assets and Return on Equity would indicate that Watsco is effectively utilizing its assets and equity to generate significant profits, enhancing its appeal to investors. On the other hand, low ROA and ROE values could reveal issues in asset and equity management, highlighting the need for operational improvements.
Last ReportedProjected for Next Year
Days Of Inventory On Hand 104.34  100.32 
Return On Tangible Assets 0.12  0.08 
Return On Capital Employed 0.20  0.13 
Return On Assets 0.11  0.06 
Return On Equity 0.18  0.11 

Things to note about Watsco Inc performance evaluation

Checking the ongoing alerts about Watsco for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Watsco Inc help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Watsco Inc has a strong financial position based on the latest SEC filings
Over 100.0% of the company outstanding shares are owned by institutional investors
On 30th of January 2026 Watsco paid $ 3.0 per share dividend to its current shareholders
Latest headline from seekingalpha.com: Watsco Q4 2025 Earnings Preview
Evaluating Watsco's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Watsco's stock performance include:
  • Analyzing Watsco's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Watsco's stock is overvalued or undervalued compared to its peers.
  • Examining Watsco's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Watsco's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Watsco's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of Watsco's stock. These opinions can provide insight into Watsco's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Watsco's stock performance is not an exact science, and many factors can impact Watsco's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock:
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Watsco Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in producer price index.
You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Will Trading Companies & Distributors sector continue expanding? Could Watsco diversify its offerings? Factors like these will boost the valuation of Watsco. Anticipated expansion of Watsco directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Watsco data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth
(0.06)
Dividend Share
11.4
Earnings Share
12.87
Revenue Per Share
196.328
Quarterly Revenue Growth
(0.04)
Investors evaluate Watsco Inc using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Watsco's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Watsco's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Watsco's market price signifies the transaction level at which participants voluntarily complete trades.