Watsco (WSO)

• Market cap: $20.4B
• Sector: Industrials
• Industry: Hardware & Plumbing & Heating Equipment & Supplies

About: 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.

Employees: 7,425

Fund manager confidence

Based on 2024 Q2 SEC filings by fund managers ($100M+ AUM)

43% more first-time investments, than exits

New positions opened: 107 | Existing positions closed: 75

15% more funds holding in top 10

Funds holding in top 10: 13 [Q1] → 15 (+2) [Q2]

14% more call options, than puts

Call options by funds: $40.9M | Put options by funds: $36M

7% more capital invested

Capital invested by funds: $15.6B [Q1] → $16.7B (+$1.1B) [Q2]

4% more funds holding

Funds holding: 735 [Q1] → 767 (+32) [Q2]

2.76% less ownership

Funds ownership: 106.31% [Q1] → 103.56% (-2.76%) [Q2]

24% less repeat investments, than reductions

Existing positions increased: 241 | Existing positions reduced: 318

Research analyst outlook

3 Wall Street Analysts provided 1 year price targets over the past 3 months

• Low target: $425 16% downside
• Avg. target: $499 1% downside
• High target: $550 9% upside

3 analyst ratings

• positive: 2 67%
• neutral: 1 33%
• negative: 0 0%

Baird David Manthey 57% 1-year accuracy 17 / 30 met price target	9% upside $550	Outperform Maintained	16 Oct 2024
JP Morgan Stephen Tusa 67% 1-year accuracy 14 / 21 met price target	16% downside $425	Neutral Maintained	31 Jul 2024
Baird David Manthey 57% 1-year accuracy 17 / 30 met price target	3% upside $522	Outperform Maintained	31 Jul 2024