WSO (WSO) Stock Analysis

Verdict: HOLD

High valuation and deteriorating growth make WSO a 'falling knife' until the 27x P/E multiple aligns with its flat-to-negative EPS trend.

Investment score: 44/100

Watsco is experiencing a fundamental re-rating as the post-pandemic HVAC boom fades into a replacement-only market. With three misses in the last four quarters and EPS trending downward since 2022, the 'quality' premium is evaporating. The model sees better entry points near $250.

Peers

PeerP/EP/BP/SEV/EBITDAROIC %Net margin %
GWW36.6616.463.5123.120.10
FAST40.2813.416.2328.660.15
FERG21.287.451.3814.710.07
SUNB23.344.102.689.520.12
WCC22.333.090.6414.010.03

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