Watsco Inc

WSO

Market cap $15.2B

MIAMI, Jan. 02, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc.'s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $3.00 on each outstanding share of its Common and Class B common stock payable on January 30, 2026 to shareholders of record at the close of business on January 16, 2026.

The market appears expensive, with historical precedent for long periods of low returns after peaks. Consensus expects 15% S&P 500 earnings growth and rising margins, driven by AI innovation, supporting a steady long-term outlook. Analyst forecasts for 2026 should be viewed skeptically, as actual outcomes often diverge from consensus projections.

I am rotating from Big Tech to cyclical value, energy, and high-quality dividend growth stocks amid complex market interconnections. AI is the dominant disruptor, impacting macroeconomics, labor, energy demand, and driving market concentration in the Mag-7. Current market valuations are unfavorable and top-heavy, with over 40% in the largest ten holdings.

Watsco, Inc. (WSO) Analyst/Investor Day Transcript

Watsco (WSO) reported earnings 30 days ago. What's next for the stock?

Evaluate Watsco's (WSO) reliance on international revenue to better understand the company's financial stability, growth prospects and potential stock price performance.

Watsco remains a high-quality business with strong industry positioning and improving margins, but current valuation limits upside potential. WSO faces near-term headwinds, including disappointing recent results, weaker consumer sentiment, and repeated HVAC OEM price hikes impacting demand. Profitability remains a bright spot, with expanding margins and improved cash flow as inventory turnover normalizes post-product transition.

Watsco, Inc. ( WSO ) Q3 2025 Earnings Call October 29, 2025 10:00 AM EDT Company Participants Albert Nahmad - Chairman & CEO Paul Johnston - Executive Vice President Barry S. Logan - Executive VP of Planning & Strategy, Secretary and Director Rick Gomez - Vice President of Corporate Development Aaron Nahmad - Co-Vice Chairman & President Conference Call Participants Thomas Moll - Stephens Inc., Research Division Ryan Merkel - William Blair & Company L.L.C.

The headline numbers for Watsco (WSO) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Watsco (WSO) came out with quarterly earnings of $3.98 per share, missing the Zacks Consensus Estimate of $4.21 per share. This compares to earnings of $4.22 per share a year ago.