Watsco (WSO) Lifted 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 on Monday. The firm presently has a $185.00 target price on the construction company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 12.17% from the stock’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.”
A number of other research firms have also recently commented on WSO. Morgan Stanley lifted their target price on Watsco from $151.00 to $156.00 and gave the stock an “underweight” rating in a research report on Thursday, October 26th. Susquehanna Bancshares set a $195.00 target price on Watsco and gave the stock a “buy” rating in a research report on Friday, February 9th. Stephens set a $169.00 target price on Watsco and gave the stock a “hold” rating in a research report on Thursday, February 8th. KeyCorp reiterated a “buy” rating on shares of Watsco in a research report on Friday, November 17th. Finally, JPMorgan Chase & Co. cut their target price on Watsco from $180.00 to $169.00 and set a “neutral” rating on the stock in a research report on Monday. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and six have given a buy rating to the company. Watsco presently has an average rating of “Hold” and an average target price of $168.88.
Watsco (NYSE:WSO) last posted its earnings results on Thursday, February 8th. The construction company reported $0.90 EPS for the quarter, missing the Zacks’ consensus estimate of $1.00 by ($0.10). Watsco had a return on equity of 14.66% and a net margin of 4.80%. The firm had revenue of $964.35 million for the quarter, compared to analyst estimates of $965.85 million. During the same quarter last year, the firm posted $0.81 EPS. The firm’s revenue for the quarter was up 5.6% on a year-over-year basis. research analysts forecast that Watsco will post 6.82 EPS for the current fiscal year.
In related news, SVP Barry S. Logan sold 3,246 shares of the business’s stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $164.30, for a total value of $533,317.80. Following the transaction, the senior vice president now owns 15,800 shares in the company, valued at approximately $2,595,940. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 13.93% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. SeaCrest Wealth Management LLC acquired a new position in Watsco in the 4th quarter valued at about $103,000. Cigna Investments Inc. New acquired a new position in Watsco in the 4th quarter valued at about $205,000. CIBC Asset Management Inc acquired a new position in Watsco in the 3rd quarter valued at about $206,000. Financial Gravity Companies Inc. acquired a new position in Watsco in the 4th quarter valued at about $230,000. Finally, Quantbot Technologies LP acquired a new position in Watsco in the 3rd quarter valued at about $207,000. Hedge funds and other institutional investors own 82.36% of the company’s stock.
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.
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