Zacks Research Comments on Watsco’s Q2 Earnings (NYSE:WSO)

Posted by Geri Gentry on Sep 25th, 2026

Watsco, Inc. (NYSE:WSO – Free Report) – Stock analysts at Zacks Research lifted their Q2 2028 earnings per share (EPS) estimates for shares of Watsco in a research report issued to clients and investors on Wednesday, September 23rd. Zacks Research analyst Team now forecasts that the construction company will post earnings of $5.09 per share for the quarter, up from their previous forecast of $5.06. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $12.21 per share. Zacks Research also issued estimates for Watsco’s FY2028 earnings at $15.15 EPS.

WSO has been the subject of several other research reports. DA Davidson dropped their price objective on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Stephens reaffirmed an “overweight” rating and set a $485.00 target price on shares of Watsco in a report on Monday, August 17th. Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a research report on Tuesday. Morgan Stanley boosted their price target on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Finally, Robert W. Baird set a $400.00 price target on Watsco in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Watsco has a consensus rating of “Hold” and a consensus price target of $395.50.

View Our Latest Report on Watsco

Watsco Stock Performance

WSO stock opened at $320.08 on Friday. The company’s 50-day simple moving average is $323.31 and its 200 day simple moving average is $368.93. Watsco has a 52 week low of $295.75 and a 52 week high of $459.00. The company has a market capitalization of $13.20 billion, a PE ratio of 27.76 and a beta of 1.05.

Watsco (NYSE:WSO – Get Free Report) last posted its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%.The firm had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same period in the prior year, the business posted $4.52 EPS. The firm’s quarterly revenue was up 2.1% compared to the same quarter last year.

Institutional Investors Weigh In On Watsco

A number of large investors have recently modified their holdings of the business. QRG Capital Management Inc. lifted its position in shares of Watsco by 8.8% in the 2nd quarter. QRG Capital Management Inc. now owns 1,188 shares of the construction company’s stock worth $495,000 after purchasing an additional 96 shares during the period. Van Hulzen Asset Management LLC bought a new position in Watsco during the second quarter worth $250,000. Integrated Wealth Concepts LLC lifted its holdings in Watsco by 10.8% in the second quarter. Integrated Wealth Concepts LLC now owns 1,676 shares of the construction company’s stock valued at $698,000 after buying an additional 163 shares during the period. RFG Advisory LLC lifted its holdings in Watsco by 3.9% in the second quarter. RFG Advisory LLC now owns 6,006 shares of the construction company’s stock valued at $2,503,000 after buying an additional 228 shares during the period. Finally, NewEdge Advisors LLC boosted its position in Watsco by 102.9% during the second quarter. NewEdge Advisors LLC now owns 1,536 shares of the construction company’s stock valued at $640,000 after acquiring an additional 779 shares during the last quarter. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were given a dividend of $3.30 per share. The ex-dividend date was Thursday, July 16th. This represents a $13.20 annualized dividend and a dividend yield of 4.1%. Watsco’s dividend payout ratio (DPR) is currently 114.48%.

Trending Headlines about Watsco

Here are the key news stories impacting Watsco this week:

Positive Sentiment: Some analysts argue that Watsco may be undervalued based on its future cash-flow potential and could benefit from the industry’s transition to A2L refrigerants, which may support demand for replacement HVAC equipment. Watsco Stock Appears Undervalued Based on Future Cash Flow Watsco Could Be 14% Undervalued on Its A2L Transition Story
Positive Sentiment: Zacks Research slightly increased its second-quarter 2028 EPS estimate to $5.09 from $5.06, while forecasting fiscal 2028 EPS of $15.15. The modest upgrade provides a limited indication of longer-term earnings potential.
Neutral Sentiment: A separate industrial-distribution article highlighted competitive advantages among specialized distributors, a theme that may support Watsco’s long-term positioning but did not announce a company-specific development. Five Industrial Distributors With a Competitive Advantage
Negative Sentiment: Zacks Research downgraded Watsco from “Hold” to “Strong Sell,” creating the clearest near-term bearish catalyst for WSO.
Negative Sentiment: Zacks reduced its fiscal 2027 EPS forecast to $13.26 from $13.53, lowered second- and third-quarter estimates to $4.58, and cut fourth-quarter EPS to $2.16 from $2.33. Fiscal 2028 EPS was also trimmed to $15.15 from $15.26, suggesting weaker expected earnings momentum despite the small Q2 2028 increase.

About Watsco

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Watsco, Inc is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and commercial contractors with air conditioners, furnaces, heat pumps, refrigeration systems, ductwork, thermostats, controls, tools, replacement parts and other installation supplies.

Through its distribution network and digital sales platforms, Watsco serves HVAC/R contractors, dealers and other customers primarily across the United States, as well as in Canada and Puerto Rico.