Watsco (WSO) Upgraded to Buy at Zacks Investment Research

Watsco (NYSE:WSO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The brokerage presently has a $185.00 price objective on the construction company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 12.08% from the company’s current price.

According to Zacks, “Watsco’s top and bottom-line delivered year-over-year improvement but missed the Zacks Consensus Estimates. The company continues to transform its business into the digital age by investing in scalable platforms for mobile apps, e-commerce, business intelligence and supply-chain optimization. Its technology continues to evolve and make progress. Currently e-commerce sales generate 25% of its revenues. Further, its focus on strategic acquisitions, cost-cutting initiatives and growth potential in the replacement market are likely to drive growth. The company’s sound balance sheet positions it well to invest and capitalize on long-term growth opportunities.”

WSO has been the subject of several other research reports. KeyCorp reissued a “buy” rating on shares of Watsco in a research report on Friday, November 17th. Morgan Stanley raised their price objective on Watsco from $151.00 to $156.00 and gave the company an “underweight” rating in a research report on Thursday, October 26th. Susquehanna Bancshares set a $195.00 price objective on Watsco and gave the company a “buy” rating in a research report on Friday. Stephens set a $169.00 price objective on Watsco and gave the company a “hold” rating in a research report on Thursday. Finally, JPMorgan Chase & Co. reduced their price target on Watsco from $180.00 to $169.00 and set a “neutral” rating for the company in a report on Monday. One analyst has rated the stock with a sell rating, four have issued a hold rating and six have assigned a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $168.88.

Shares of Watsco (NYSE WSO) traded up $0.08 during trading on Monday, reaching $165.06. The company’s stock had a trading volume of 184,157 shares, compared to its average volume of 203,891. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.21 and a quick ratio of 1.38. The stock has a market capitalization of $5,896.55, a price-to-earnings ratio of 28.45 and a beta of 0.87. Watsco has a fifty-two week low of $134.08 and a fifty-two week high of $182.79.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Thursday, February 8th. The construction company reported $0.90 EPS for the quarter, missing the consensus estimate of $1.00 by ($0.10). The firm had revenue of $964.35 million for the quarter, compared to analysts’ expectations of $965.85 million. Watsco had a net margin of 4.80% and a return on equity of 14.66%. The business’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.81 EPS. equities analysts expect that Watsco will post 6.82 EPS for the current year.

In other news, SVP Barry S. Logan sold 3,246 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $164.30, for a total transaction of $533,317.80. Following the completion of the transaction, the senior vice president now directly owns 15,800 shares in the company, valued at $2,595,940. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 13.93% of the stock is owned by company insiders.

Several large investors have recently modified their holdings of WSO. AlphaStar Capital Management LLC bought a new stake in Watsco in the 4th quarter worth about $331,000. American International Group Inc. increased its holdings in Watsco by 1.7% in the 4th quarter. American International Group Inc. now owns 63,214 shares of the construction company’s stock worth $10,749,000 after buying an additional 1,060 shares in the last quarter. HAP Trading LLC bought a new stake in Watsco in the 4th quarter worth about $1,810,000. Royce & Associates LP bought a new stake in Watsco in the 4th quarter worth about $1,598,000. Finally, UBS Asset Management Americas Inc. increased its holdings in Watsco by 6.2% in the 4th quarter. UBS Asset Management Americas Inc. now owns 36,387 shares of the construction company’s stock worth $6,187,000 after buying an additional 2,134 shares in the last quarter. Hedge funds and other institutional investors own 82.36% of the company’s stock.

TRADEMARK VIOLATION NOTICE: “Watsco (WSO) Upgraded to Buy at Zacks Investment Research” was first reported by American Banking News and is the sole property of of American Banking News. If you are reading this report on another website, it was copied illegally and reposted in violation of US & international trademark & copyright laws. The correct version of this report can be read at https://www.americanbankingnews.com/2018/02/12/watsco-wso-upgraded-to-buy-at-zacks-investment-research-3.html.

Watsco Company Profile

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.

Get a free copy of the Zacks research report on Watsco (WSO)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Watsco (NYSE:WSO)

Receive News & Ratings for Watsco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Watsco and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply