Watsco, Inc. (NYSE:WSO) Stock Has Consensus Target Price of $395.50

25 Sep 2026, 08:47 by Amy Steele · The Cerbat Gem

Watsco, Inc. (NYSE:WSO – Get Free Report) has received an average rating of “Hold” from the eleven analysts that are currently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and two have given a buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $395.50.

WSO has been the topic of a number of recent analyst reports. DA Davidson dropped their target price on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Zacks Research downgraded shares of Watsco from a “hold” rating to a “strong sell” rating in a research note on Tuesday. Stephens reiterated an “overweight” rating and set a $485.00 target price on shares of Watsco in a research report on Monday, August 17th. Robert W. Baird set a $400.00 price objective on Watsco in a research note on Thursday, July 30th. Finally, Morgan Stanley raised their price objective on shares of Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a research report on Friday, July 10th.

View Our Latest Report on WSO

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Capital International Investors lifted its holdings in shares of Watsco by 103.1% during the fourth quarter. Capital International Investors now owns 4,642,893 shares of the construction company’s stock worth $1,564,423,000 after purchasing an additional 2,356,998 shares during the period. Geode Capital Management LLC raised its position in Watsco by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 638,014 shares of the construction company’s stock worth $214,373,000 after buying an additional 5,176 shares during the last quarter. Markel Group Inc. raised its position in Watsco by 0.8% during the 1st quarter. Markel Group Inc. now owns 582,169 shares of the construction company’s stock worth $211,787,000 after buying an additional 4,500 shares during the last quarter. Captrust Financial Advisors lifted its stake in shares of Watsco by 1.5% in the 4th quarter. Captrust Financial Advisors now owns 396,514 shares of the construction company’s stock worth $133,605,000 after acquiring an additional 6,034 shares during the period. Finally, Norges Bank purchased a new stake in shares of Watsco in the fourth quarter valued at about $110,853,000. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Watsco

Here are the key news stories impacting Watsco this week:

Positive Sentiment: Some analysts argue that Watsco may be undervalued based on its future cash-flow potential and could benefit from the industry’s transition to A2L refrigerants, which may support demand for replacement HVAC equipment. Watsco Stock Appears Undervalued Based on Future Cash Flow Watsco Could Be 14% Undervalued on Its A2L Transition Story
Positive Sentiment: Zacks Research slightly increased its second-quarter 2028 EPS estimate to $5.09 from $5.06, while forecasting fiscal 2028 EPS of $15.15. The modest upgrade provides a limited indication of longer-term earnings potential.
Neutral Sentiment: A separate industrial-distribution article highlighted competitive advantages among specialized distributors, a theme that may support Watsco’s long-term positioning but did not announce a company-specific development. Five Industrial Distributors With a Competitive Advantage
Negative Sentiment: Zacks Research downgraded Watsco from “Hold” to “Strong Sell,” creating the clearest near-term bearish catalyst for WSO.
Negative Sentiment: Zacks reduced its fiscal 2027 EPS forecast to $13.26 from $13.53, lowered second- and third-quarter estimates to $4.58, and cut fourth-quarter EPS to $2.16 from $2.33. Fiscal 2028 EPS was also trimmed to $15.15 from $15.26, suggesting weaker expected earnings momentum despite the small Q2 2028 increase.

Watsco Stock Performance

Shares of NYSE WSO opened at $320.08 on Friday. The stock’s 50-day simple moving average is $323.31 and its 200-day simple moving average is $368.93. The firm has a market capitalization of $13.20 billion, a PE ratio of 27.76 and a beta of 1.05. Watsco has a fifty-two week low of $295.75 and a fifty-two week high of $459.00.

Watsco (NYSE:WSO – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a net margin of 6.53% and a return on equity of 14.40%. The company had revenue of $2.10 billion during the quarter, compared to analysts’ expectations of $2.14 billion. During the same quarter in the prior year, the company earned $4.52 earnings per share. The business’s revenue for the quarter was up 2.1% on a year-over-year basis. On average, sell-side analysts forecast that Watsco will post 12.21 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were issued a dividend of $3.30 per share. The ex-dividend date of this dividend was Thursday, July 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.1%. Watsco’s dividend payout ratio (DPR) is currently 114.48%.

Watsco Company Profile

(Get Free Report)

Watsco, Inc is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and commercial contractors with air conditioners, furnaces, heat pumps, refrigeration systems, ductwork, thermostats, controls, tools, replacement parts and other installation supplies.