Key Drivers
- Profitability Strength
- Low Leverage
- Cash Flow Pressure
AIAI Summary
WSO remains a high-quality business, but the key takeaway is that at ~34x earnings the stock now hinges on whether stronger cash conversion and Jackson Supply integration can outrun valuation pressure and the recent technical downtrend, especially with 400 as a critical support level.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •Profitability Strength
- •Low Leverage
- •Cash Flow Pressure
WSO is a high-quality, low-leverage business with strong profitability and cash generation, but its premium valuation, tight dividend coverage, and weaker recent cash flow limit upside.
Price Behavior
Key Price Behavior Insights:
- •Lower highs
- •$400 support
- •Failed rebounds
Over the last month, WSO has shifted from a late-April rally into a short-term downtrend, with lower highs near $420-$430 and $400 now the key level to hold.
Late-April surge to $456.86 was followed by repeated failed rebounds and a sharp pullback
Sentiment & News
Key News Insights:
- •Earnings beat
- •Efficiency gains
- •Acquisition growth
Watsco beat Q1 earnings estimates, cited efficiency and technology gains, and added growth via the Jackson Supply acquisition despite mixed institutional sentiment.
The news is modestly positive for Watsco, as better-than-expected profits and a strategic acquisition suggest resilient execution and continued expansion
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