Watsco, Inc. (WSO) Stock Rating Upgraded by Zacks Investment Research
Watsco, Inc. (NYSE:WSO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm presently has a $173.00 price target on the construction company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 12.24% from the stock’s current price.
According to Zacks, “Watsco expects to generate earnings growth and anticipates cash flow to exceed net income in 2017. The company’s strategic goals will help to further strengthen its leadership position, accelerate sales growth and extend reach to new geographies and sales channels. The company will benefit from the expansion of product offerings and growth potential in the replacement market. Improved selling margins and richer sales mix of higher-efficiency systems will also drive growth. Watsco's Carrier Enterprise business unit has recently acquired 35% ownership of Russell Sigler, Inc, a move that will strengthen its presence in the significant Western U.S. markets.”
WSO has been the topic of several other research reports. Seaport Global Securities raised shares of Watsco from a “neutral” rating to a “buy” rating and lifted their price target for the company from $145.00 to $160.00 in a report on Wednesday, April 26th. Stifel Nicolaus reissued a “buy” rating and issued a $176.00 target price (up previously from $163.00) on shares of Watsco in a report on Friday. Finally, BidaskClub raised shares of Watsco from a “sell” rating to a “hold” rating in a report on Thursday, June 15th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and five have given a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $153.14.
Shares of Watsco (NYSE:WSO) traded down 1.38% during mid-day trading on Tuesday, hitting $152.01. 121,054 shares of the company were exchanged. The company has a market capitalization of $4.96 billion, a P/E ratio of 29.52 and a beta of 0.82. The company has a 50 day moving average of $142.40 and a 200 day moving average of $146.66. Watsco has a 52 week low of $128.60 and a 52 week high of $159.55.
Watsco (NYSE:WSO) last announced its earnings results on Tuesday, April 25th. The construction company reported $0.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.80 by $0.13. The business had revenue of $872.10 million for the quarter, compared to the consensus estimate of $877.45 million. Watsco had a net margin of 4.13% and a return on equity of 13.81%. The business’s quarterly revenue was up 2.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.71 earnings per share. Equities analysts anticipate that Watsco will post $5.63 earnings per share for the current year.
A number of large investors have recently added to or reduced their stakes in the stock. Bank of Nova Scotia purchased a new position in Watsco during the first quarter worth $450,000. Flinton Capital Management LLC purchased a new position in Watsco during the fourth quarter worth $104,000. Creative Planning boosted its position in Watsco by 1.5% in the first quarter. Creative Planning now owns 979 shares of the construction company’s stock worth $140,000 after buying an additional 14 shares during the period. Meadow Creek Investment Management LLC boosted its position in Watsco by 9.1% in the first quarter. Meadow Creek Investment Management LLC now owns 1,056 shares of the construction company’s stock worth $151,000 after buying an additional 88 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Watsco by 41.3% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,174 shares of the construction company’s stock worth $168,000 after buying an additional 343 shares during the period. 79.17% of the stock is currently owned by institutional investors.
Watsco, Inc is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products.
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