Watsco Number Of Shares Shorted vs. Return On Equity
| WSO Stock | USD 514.10 3.37 0.65% |
For Watsco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Watsco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Watsco Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Watsco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Watsco Inc over time as well as its relative position and ranking within its peers.
Watsco |
Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Watsco. If investors know Watsco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Watsco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Watsco Inc is measured differently than its book value, which is the value of Watsco that is recorded on the company's balance sheet. Investors also form their own opinion of Watsco's value that differs from its market value or its book value, called intrinsic value, which is Watsco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Watsco's market value can be influenced by many factors that don't directly affect Watsco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely 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. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Watsco Inc Return On Equity vs. Number Of Shares Shorted Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Watsco's current stock value. Our valuation model uses many indicators to compare Watsco value to that of its competitors to determine the firm's financial worth. Watsco Inc is rated below average in number of shares shorted category among its peers. It is rated below average in return on equity category among its peers . The ratio of Number Of Shares Shorted to Return On Equity for Watsco Inc is about 11,619,142 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Watsco's earnings, one of the primary drivers of an investment's value.Watsco Return On Equity vs. Number Of Shares Shorted
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Watsco |
| = | 2.47 M |
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Watsco |
| = | 0.21 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Watsco Return On Equity Comparison
Watsco is currently under evaluation in return on equity category among its peers.
Watsco Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Watsco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Watsco will eventually generate negative long term returns. The profitability progress is the general direction of Watsco's change in net profit over the period of time. It can combine multiple indicators of Watsco, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida. Watsco operates under Industrial Distribution classification in the United States and is traded on New York Stock Exchange. It employs 6850 people.
Watsco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Watsco. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Watsco position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Watsco's important profitability drivers and their relationship over time.
Use Watsco in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Watsco position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Watsco will appreciate offsetting losses from the drop in the long position's value.Watsco Pair Trading
Watsco Inc Pair Trading Analysis
The ability to find closely correlated positions to Watsco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Watsco when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Watsco - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Watsco Inc to buy it.
The correlation of Watsco is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Watsco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Watsco Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Watsco can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Watsco position
In addition to having Watsco in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Dynamically computed list of top equities currently sorted across major exchanges. The Latest Losers theme has 232 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Latest Losers Theme or any other thematic opportunities.
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Check out Your Current Watchlist. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
To fully project Watsco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Watsco Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Watsco's income statement, its balance sheet, and the statement of cash flows.