Added to YB: 2026-09-02
Pitch date: 2026-08-30
WSO [bullish]
Watsco, Inc.
+1.75%
current return
Author Info
Company Info
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean.
Market Cap
$12.0B
Pitch Price
$309.55
Price Target
488.40 (+58%)
Dividend
4.25%
EV/EBITDA
14.18
P/E
26.64
EV/Sales
1.73
Sector
Trading Companies and Distributors
Category
growth
Best Buys: August 2026 - Watsco, Inc.
WSO: Watsco, North America’s largest HVAC/R distributor, derives 70%-80% of sales from emergency replacements and repairs, while e-commerce generates one-third of revenue and its digital platforms help contractors find parts, create quotes and complete more jobs. The shares are down more than 45% amid pandemic pull-forward, refrigerant-transition disruption and OEM pricing normalization. Achieving management’s $10B revenue target at an assumed 8% net margin and 25x forward P/E implies 56% upside.
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