Is WSO a good stock to buy right now?

Based on our 6-factor quantitative model, WATSCO INC (WSO) receives a "Reduce" rating with a composite score of 43.3/100. It is ranked #2,431 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 59/100, Momentum 36/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for WSO?

WATSCO INC (WSO) has a "Reduce" rating and 2-star score. The composite score of 43.3 ranks it #2,431 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is WSO in?

WATSCO INC operates in the Consumer Staples sector (Wholesale industry) with a market cap of $15.26 billion. It is classified as a large-cap stock.

Does WSO pay a dividend?

Yes, WSO pays a dividend with a current yield of 2.84%. The Consumer Staples sector average yield is 0.38%. For every $1,000 invested, you would receive approximately $28.40 in annual dividend income.

What is WSO's P/E ratio?

WSO has a trailing P/E ratio of 22.07x. The Consumer Staples sector average is 33.1x. This P/E is in a moderate range relative to the broader market.

How profitable is WSO?

WSO's quality factor score is 50/100. Gross margin: 27.8%. ROE: 21.8% vs sector average 7.7%. Margins are moderate to low, reflecting competitive market dynamics.

How is WSO valued compared to peers?

WSO's value factor score is 59/100 (higher = cheaper). Key multiples: P/E 22.1x, EV/EBITDA 17.6x. Valuation is roughly in line with peers.

What is WSO's debt level?

WSO's debt-to-equity ratio is 37%. Sector average: 72%. Low leverage suggests conservative financial management.

WSO has a beta of 0.81, meaning it tracks the market. Stability score: 66/100.

Does WSO have high short interest?

WSO's short interest factor score is 5/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

WSO Stock Analysis: Reduce (Score 43.3/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
WSO	+1.29%	+10.47%	+7.81%	+21.41%	-18.04%	-	-	-
Industry Proxy XLP	-1.29%	+0.59%	-3.91%	+6.04%	+3.81%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+1.36%	+6.87%	+7.47%	+21.77%	-47.56%	-	-	-
Alpha vs Sector	+2.58%	+9.89%	+11.72%	+15.37%	-21.85%	-	-	-

Metric	WSO	Benchmark
P/E Ratio	22.1x	-33%
EV/EBITDA	17.6x	+154%
Price / Book	4.8x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
ITRN Ituran Location & Control Ltd.	60	48	82	70	19.6x	122.1%	47.8%	16.8%	-	0.0x	$1.0B	VS
SENEA Seneca Foods Corp	55	49	59	69	10.3x	14.4%	14.3%	6.7%	70.9%	39.0x	$1.1B	VS
JBSS SANFILIPPO JOHN B & SON INC	54	50	57	61	12.8x	20.2%	19.3%	6.3%	14.0%	11.0x	$965M	VS
ARW ARROW ELECTRONICS, INC.	53	50	73	63	15.8x	7.2%	11.2%	1.6%	11.9%	337.0x	$7.5B	VS
SFD SMITHFIELD FOODS INC	53	50	72	57	13.8x	11.9%	19.9%	7.5%	7.3%	29.0x	$11.3B	VS
BG Bunge Global SA	53	50	54	69	24.9x	5.7%	5.4%	1.8%	67.3%	59.0x	$24.8B	VS
DAR DARLING INGREDIENTS INC.	53	50	55	71	142.7x	1.5%	24.1%	1.2%	13.3%	114.0x	$9.9B	VS
ADM Archer-Daniels-Midland Co	52	50	52	64	54.6x	2.8%	6.4%	0.8%	-8.4%	33.0x	$34.9B	VS
CTVA Corteva, Inc.	52	49	51	60	50.6x	4.7%	42.9%	0.2%	-57.2%	76.0x	$56.3B	VS
MO ALTRIA GROUP, INC.	51	50	67	51	13.6x	-	62.1%	33.8%	-2.2%	-990.0x	$109.5B	VS
WSO WATSCO INC	43	50	59	36	22.1x	21.8%	27.8%	8.8%	-3.4%	37.0x	$15.3B

Key Ratio	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Gross Margin %	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.2%	0.2%	0.2%	0.2%	0.2%
Operating Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
EBITDA Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
Net Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
FCF Margin %	2.0%	-	-	-	-	-	10.2%	6.7%	3.4%	6.6%	5.5%
ROE %	0.2%	0.2%	0.2%	0.2%	0.3%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%
ROA %	0.2%	0.1%	0.1%	0.2%	0.2%	0.2%	0.1%	0.1%	0.1%	0.1%	0.1%
ROIC %	20.5%	17.7%	20.2%	24.0%	29.2%	24.9%	19.8%	16.6%	20.5%	22.3%	23.0%

Key Ratio

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

Gross Margin %

0.3%

0.2%

Operating Margin %

0.1%

EBITDA Margin %

0.1%

Net Margin %

0.1%

FCF Margin %

2.0%

10.2%

6.7%

3.4%

6.6%

5.5%

ROE %

0.2%

0.3%

0.2%

ROA %

0.2%

0.1%

0.2%

0.1%

ROIC %

20.5%

17.7%

20.2%

24.0%

29.2%

24.9%

19.8%

16.6%

20.5%

22.3%

23.0%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$7.8B	$7.2B	$7.6B	$7.3B	$7.3B	$6.3B	$5.1B	$4.8B	$4.5B	$4.3B	$4.2B	$4.1B
	—	$5.2B	$5.6B	$5.3B	$5.2B	$4.6B	—	—	—	—	—	—
	$2.2B	$2.0B	$2.0B	$2.0B	$2.0B	$1.7B	$1.2B	$1.2B	$1.1B	$1.1B	$1.0B	$1.0B
Gross Margin	27.8%	28.1%	26.8%	27.4%	27.9%	26.6%	24.2%	24.3%	24.6%	24.5%	24.5%	24.5%
	—	$1.3B	$1.3B	$1.2B	$1.2B	$1.1B	—	—	—	—	—	—
Depreciation	—	$38M	$35M	$31M	$27M	$23M	$26M	$25M	$22M	$22M	$20M	$19M
Total Operating Expenses	—	$1.3B	$1.3B	$1.2B	$1.2B	$1.0B	—	—	—	—	—	—
	$869M	$720M	$782M	$795M	$832M	$629M	$390M	$367M	$363M	$350M	$346M	$337M
EBIT	$869M	$720M	$782M	$795M	$832M	$629M	$390M	$367M	$363M	$350M	$346M	$337M
EBITDA	$880M	$759M	$817M	$826M	$859M	$651M	$416M	$391M	$394M	$372M	$366M	$356M
Operating Margin	10.9%	10.0%	10.3%	10.9%	11.4%	10.0%	7.7%	7.7%	8.2%	8.1%	8.2%	8.2%
EBITDA Margin	11.3%	10.5%	10.7%	11.3%	11.8%	10.4%	8.2%	8.2%	8.7%	8.6%	8.7%	8.7%
	—	—	—	—	—	—	$1M	$4M	$3M	$6M	$4M	$6M
	—	$738M	$803M	$790M	$829M	$628M	—	—	—	—	—	—
Income Tax Expense	—	$150M	$167M	$156M	$126M	$129M	$77M	$67M	$73M	$90M	$106M	$105M
	$702M	$588M	$636M	$634M	$704M	$499M	$323M	$296M	$297M	$257M	$236M	$227M
Net Margin	8.8%	8.1%	8.3%	8.7%	9.7%	7.9%	6.4%	6.2%	6.5%	5.9%	5.6%	5.5%
	$12.27	$12.27	$13.34	$13.72	$15.46	$10.83	$7.03	$6.51	$6.50	$5.81	$5.16	$4.91
Diluted EPS	$12.27	$12.25	$13.30	$13.67	$15.41	$10.78	$7.03	$6.51	$6.50	$5.81	$5.16	$4.91
Weighted Avg Basic	—	38M	—	—	—	35M	—	—	—	—	—	—
Weighted Avg Diluted	—	38M	—	—	—	35M	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$7.8B

$7.2B

$7.6B

$7.3B

$6.3B

$5.1B

$4.8B

$4.5B

$4.3B

$4.2B

$4.1B

—

$5.2B

$5.6B

$5.3B

$5.2B

$4.6B

—

$2.2B

$2.0B

$1.7B

$1.2B

$1.1B

$1.0B

Gross Margin

27.8%

28.1%

26.8%

27.4%

27.9%

26.6%

24.2%

24.3%

24.6%

24.5%

—

$1.3B

$1.2B

$1.1B

—

Depreciation

—

$38M

$35M

$31M

$27M

$23M

$26M

$25M

$22M

$20M

$19M

Total Operating Expenses

—

$1.3B

$1.2B

$1.0B

—

$869M

$720M

$782M

$795M

$832M

$629M

$390M

$367M

$363M

$350M

$346M

$337M

EBIT

$869M

$720M

$782M

$795M

$832M

$629M

$390M

$367M

$363M

$350M

$346M

$337M

EBITDA

$880M

$759M

$817M

$826M

$859M

$651M

$416M

$391M

$394M

$372M

$366M

$356M

Operating Margin

10.9%

10.0%

10.3%

10.9%

11.4%

10.0%

7.7%

8.2%

8.1%

8.2%

EBITDA Margin

11.3%

10.5%

10.7%

11.3%

11.8%

10.4%

8.2%

8.7%

8.6%

8.7%

—

$1M

$4M

$3M

$6M

$4M

$6M

—

$738M

$803M

$790M

$829M

$628M

—

Income Tax Expense

—

$150M

$167M

$156M

$126M

$129M

$77M

$67M

$73M

$90M

$106M

$105M

$702M

$588M

$636M

$634M

$704M

$499M

$323M

$296M

$297M

$257M

$236M

$227M

Net Margin

8.8%

8.1%

8.3%

8.7%

9.7%

7.9%

6.4%

6.2%

6.5%

5.9%

5.6%

5.5%

$12.27

$13.34

$13.72

$15.46

$10.83

$7.03

$6.51

$6.50

$5.81

$5.16

$4.91

Diluted EPS

$12.27

$12.25

$13.30

$13.67

$15.41

$10.78

$7.03

$6.51

$6.50

$5.81

$5.16

$4.91

Weighted Avg Basic

—

38M

—

35M

—

Weighted Avg Diluted

—

38M

—

35M

—

WATSCO INC (WSO) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does WATSCO INC Do?

Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts, including replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. As of December 31, 2021, it operated from 671 locations in the United States, Canada, Mexico, and Puerto Rico, as well as exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida. WATSCO INC (WSO) is classified as a large-cap stock in the Consumer Staples sector, specifically within the Wholesale industry. The company is led by CEO Albert H. Nahmad and employs approximately 7,280 people, headquartered in Tallahassee, Florida. With a market capitalization of $15.3B, WSO is one of the prominent companies in the Consumer Staples sector.

WATSCO INC (WSO) Stock Rating — Reduce (April 2026)

As of April 2026, WATSCO INC receives a Reduce rating with a composite score of 43.3/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.WSO ranks #2,431 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, WATSCO INC ranks #95 of 180 stocks, placing it in the lower half of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

WSO Stock Price and 52-Week Range

WATSCO INC (WSO) currently trades at $410.57. The stock gained $6.69 (1.7%) in the most recent trading session. The 52-week high for WSO is $521.70, which means the stock is currently trading -21.3% from its annual peak. The 52-week low is $323.05, putting the stock 27.1% above its annual trough. Recent trading volume was 207K shares, suggesting relatively thin trading activity.

Is WSO Overvalued or Undervalued? — Valuation Analysis

WATSCO INC (WSO) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 22.07x, compared to the Consumer Staples sector average of 33.11x — a discount of 33%. The price-to-book ratio stands at 4.81x, versus the sector average of 1.74x. The price-to-sales ratio is 1.98x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, WSO trades at 17.62x EV/EBITDA, versus 6.93x for the sector.

Overall, WSO's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

WATSCO INC Profitability — ROE, Margins, and Quality Score

WATSCO INC (WSO) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 21.8%, compared to the Consumer Staples sector average of 7.7%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 15.9% versus the sector average of 3.1%.

On a margin basis, WATSCO INC reports gross margins of 27.8%, compared to 26.2% for the sector. The operating margin is 10.9% (sector: 2.9%). Net profit margin stands at 8.8%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at -3.4% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

WSO Debt, Balance Sheet, and Financial Health

WATSCO INC has a debt-to-equity ratio of 37.0%, compared to the Consumer Staples sector average of 72.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.12x, indicating strong short-term liquidity. Total debt on the balance sheet is $458M. Cash and equivalents stand at $324M.

WSO has a beta of 0.81, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for WATSCO INC is 66/100, reflecting average volatility within the normal range for its sector.

WATSCO INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, WATSCO INC reported revenue of $7.82B and earnings per share (EPS) of $12.27. Net income for the quarter was $702M. Gross margin was 27.8%. Operating income came in at $869M.

In FY 2025, WATSCO INC reported revenue of $7.24B and earnings per share (EPS) of $12.27. Net income for the quarter was $588M. Gross margin was 28.1%. Revenue grew -5.0% year-over-year compared to FY 2024. Operating income came in at $720M.

In Q3 2025, WATSCO INC reported revenue of $2.07B and earnings per share (EPS) of $3.98. Net income for the quarter was $189M. Gross margin was 27.5%. Revenue grew -4.3% year-over-year compared to Q3 2024. Operating income came in at $235M.

In Q2 2025, WATSCO INC reported revenue of $2.06B and earnings per share (EPS) of $4.53. Net income for the quarter was $217M. Gross margin was 29.3%. Revenue grew -3.6% year-over-year compared to Q2 2024. Operating income came in at $272M.

Over the past 8 quarters, WATSCO INC has demonstrated a growth trajectory, with revenue expanding from $2.14B to $7.82B. Investors analyzing WSO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

WSO Dividend Yield and Income Analysis

WATSCO INC (WSO) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in WSO stock would generate approximately $$284.00 in annual dividend income. This compares to the Consumer Staples sector average dividend yield of 0.4%, meaning WSO offers above-average income for its sector. The net margin of 8.8% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.

WSO Momentum and Technical Analysis Profile

WATSCO INC (WSO) has a momentum factor score of 36/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 35/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 5/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

WSO vs Competitors — Consumer Staples Sector Ranking and Peer Comparison

Within the Consumer Staples sector, WATSCO INC (WSO) ranks #95 out of 180 stocks based on the Blank Capital composite score. This places WSO in the lower half of all Consumer Staples stocks in our coverage universe. Key competitors and sector peers include Ituran Location & Control Ltd. (ITRN) with a score of 60.3/100, DARLING INGREDIENTS INC. (DAR) with a score of 52.9/100, Bunge Global SA (BG) with a score of 53.0/100, SANFILIPPO JOHN B & SON INC (JBSS) with a score of 54.1/100, and Archer-Daniels-Midland Co (ADM) with a score of 52.2/100.

Comparing WSO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WSO vs S&P 500 (SPY) comparison to assess how WATSCO INC stacks up against the broader market across all factor dimensions.

WSO Next Earnings Date

No upcoming earnings date has been announced for WATSCO INC (WSO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy WSO? — Investment Thesis Summary

The quantitative profile for WATSCO INC suggests caution. Momentum is weak at 36/100, a headwind for near-term performance. Low volatility (stability score 66/100) reduces downside risk.

In summary, WATSCO INC (WSO) earns a Reduce rating with a composite score of 43.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WSO stock.

Related Resources for WSO Investors

Explore more research and tools: WSO vs S&P 500 comparison, top Consumer Staples stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare WSO head-to-head with peers: WSO vs ITRN, WSO vs DAR, WSO vs BG.

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WATSCO INC (WSO) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does WATSCO INC Do?

WATSCO INC (WSO) Stock Rating — Reduce (April 2026)

WSO Stock Price and 52-Week Range

Is WSO Overvalued or Undervalued? — Valuation Analysis

WATSCO INC Profitability — ROE, Margins, and Quality Score

WSO Debt, Balance Sheet, and Financial Health

WATSCO INC Revenue and Earnings History — Quarterly Trend

WSO Dividend Yield and Income Analysis

WSO Momentum and Technical Analysis Profile

WSO vs Competitors — Consumer Staples Sector Ranking and Peer Comparison

WSO Next Earnings Date

Should You Buy WSO? — Investment Thesis Summary

Related Resources for WSO Investors

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