WSO · NYSE · STOCK
Watsco (WSO) Stock Analysis
$280.05
52W $277.34 – $459.00
53/100
$11.53B
24.2
1.04
Is WSO Bullish or Bearish?
Mixed.
Innellis AI committee rates Watsco (WSO) Watch with a composite score of 53/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +7.34 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -12.66 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 16.8% shows genuine earnings power backing the valuation — Value
- Dividend yield of 3.2% pays you to wait — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement — Technical
- Low leverage (debt-to-equity 0.01) -- balance sheet can absorb a shock — Risk
Bear Case
- Price-to-book of 4.9x prices in significant intangible value — Value
- Revenue declining -3.0% YoY -- this is not a growth story right now — Growth
- EPS declining -11.1% YoY despite any revenue growth — Growth
- Price structure making lower highs and lower lows — Technical
- RSI at 16 is in oversold territory (could mean either capitulation or a bounce setup) — Technical
- MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
53/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 82%
of 227 Industrials peers
Value Analyst
neutral
59
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 16.8% shows genuine earnings power backing the valuation
− Price-to-book of 4.9x prices in significant intangible value
Growth Analyst
bearish
40
/ 100 · High confidence
Growth story is weak, decelerating, or inconsistent
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− Revenue declining -3.0% YoY -- this is not a growth story right now
Technical Analyst
neutral
41
/ 100 · High confidence
Mixed or range-bound price action
+ Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement
− Price structure making lower highs and lower lows
Risk Analyst
neutral
58
/ 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
+ Low leverage (debt-to-equity 0.01) -- balance sheet can absorb a shock
− Bollinger bandwidth of 18.2% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
53
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 52.7 to 52.7.
- New bearish signals: 2 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Technical Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
16.2
Oversold
MACD Histogram
-2.778
Bearish Momentum
Trend Direction
Downtrend
Weekly: Downtrend
Market Structure
Lh Ll
Support
$274.71
Resistance
$286.43
Bollinger %B
0.06
Inside Bands
Price vs Moving Averages
EMA 9
$291.54
Below
EMA 21
$301.02
Below
EMA 50
$316.40
Below
EMA 200
$360.61
Below
Fundamental Analysis
Valuation
77
Growth
52
Profitability
60
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
24.2×
P/B Ratio
3.56×
PEG Ratio
-2.10
Dividend Yield
4.50%
52W High
$459.00
52W Low
$277.34
Quality & Growth
ROE
1786.9%
ROA
1115.4%
Gross Margin
2786.7%
Operating Margin
932.4%
Revenue Growth YoY
—
Debt / Equity
0.18
AI Fundamental Assessment
P/E ratio of 24.2 (inexpensive relative to a 15-40x range); Price-to-book of 3.6x; PEG ratio of -2.1 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 17.9%; Return on assets of 11.2%; Net margin of 6.5%; Gross margin of 27.9%; Current ratio of 3.20 (healthy short-term liquidity); Debt-to-equity of 0.18; Free cash flow per share is positive (18.33); Most recent quarter missed estimates by 10.7%; EPS growth accelerating (+11.3% -> +113.9% QoQ); Average YoY EPS growth of -11.6%; Analyst estimates rising over recent quarters
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