NASDAQ · STOCK
Watsco
$374.21
52W $323.05 – $494.94
56/100
—
30.7
1.01
Explore WSO Further
Is WSO Bullish or Bearish?
Mixed.
Innellis AI committee rates Watsco (WSO) Watch with a composite score of 56/100
, based on 7 analysts with 43% agreement.
Last updated July 20, 2026.
Executive Summary
The committee is genuinely divided. Risk Analyst sees a compelling case — low leverage (debt-to-equity 0.01) -- balance sheet can absorb a shock. Growth Analyst remains cautious — revenue declining -4.5% yoy -- this is not a growth story right now. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- Daily volatility (ATR%) above ~3% is treated as elevated risk.
Bear Case
- MACD histogram is negative (-2.790) — bearish momentum.
- Daily trend is down — entering long positions against the trend.
- Both daily and weekly trends are bearish — strong multi-timeframe downtrend.
Price History (6M)
AI Investment Committee
Committee Consensus
As of July 20, 2026
Overall Committee Score
56/100
Agreement
43%
Analysts
7
Conviction
Contested
Value Analyst
neutral
54
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 17.8% shows genuine earnings power backing the valuation
− P/E of 30.6 is moderate-to-rich
Growth Analyst
bearish
40
/ 100 · High confidence
Growth story is weak, decelerating, or inconsistent
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− Revenue declining -4.5% YoY -- this is not a growth story right now
Technical Analyst
neutral
42
/ 100 · High confidence
Mixed or range-bound price action
− Price structure making lower highs and lower lows
Risk Analyst
bullish
80
/ 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.01) -- balance sheet can absorb a shock
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2975.52)
Investment Thesis Evolution
Committee score moved marginally from 56.1 to 56.1.
- New bearish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Portfolio Manager: +1 bearish signal(s).
Comparing 2026-07-19 to 2026-07-20 (1 day apart).
Technical Analysis
RSI (14)
30.4
Neutral
MACD Histogram
-2.790
Bearish Momentum
Trend Direction
Downtrend
Weekly: Sideways
Market Structure
Mixed
Support
$355.32
Resistance
$383.65
Bollinger %B
0.07
Inside Bands
Price vs Moving Averages
EMA 9
$383.35
Below
EMA 21
$388.34
Below
EMA 50
$391.67
Below
EMA 200
$397.00
Below
Fundamental Analysis
Valuation
61
Growth
55
Profitability
1
Financial Health
100
Cash Flow
37
Valuation
P/E Ratio
30.7×
P/B Ratio
5.10×
PEG Ratio
-4.02
Dividend Yield
0.03%
52W High
$494.94
52W Low
$323.05
Quality & Growth
ROE
17.9%
ROA
11.2%
Gross Margin
28.4%
Operating Margin
9.8%
Revenue Growth YoY
—
Debt / Equity
0.17
AI Fundamental Assessment
P/E ratio of 30.7 (rich relative to a 15-40x range); Price-to-book of 5.1x; PEG ratio of -4.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.2%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.3%; Current ratio of 3.34 (healthy short-term liquidity); Debt-to-equity of 0.17; Free cash flow margin of 1.0% (thin cash generation); Free cash flow per share is positive (18.31); Most recent quarter beat estimates by 9.3%; EPS growth accelerating (-57.8% -> +11.3% QoQ); Analyst estimates falling over recent quarters
Key Risks
- MACD histogram is negative (-2.790) — bearish momentum.
- Daily trend is down — entering long positions against the trend.
- Both daily and weekly trends are bearish — strong multi-timeframe downtrend.
This risk summary is generated from quantitative data signals, not qualitative opinion. All investors should conduct their own due diligence. This is not financial advice.
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