Key Takeaways From Watsco Analyst Ratings

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Watsco WSO in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Watsco and provided 12-month price targets. The average target is $509.25, accompanied by a high estimate of $550.00 and a low estimate of $425.00. This upward trend is evident, with the current average reflecting a 4.35% increase from the previous average price target of $488.00.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Watsco's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Watsco. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Watsco compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Watsco's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Watsco's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Watsco analyst ratings.

All You Need to Know About Watsco

Watsco is the largest heating, ventilation, air conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (90% of 2023 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America (5% of sales). The company's customer base consists of more than 125,000 contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.

Understanding the Numbers: Watsco's Finances

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Watsco's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 6.8%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Watsco's net margin is impressive, surpassing industry averages. With a net margin of 7.89%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Watsco's ROE excels beyond industry benchmarks, reaching 6.57%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.86%, the company showcases effective utilization of assets.

Debt Management: Watsco's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.16.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.