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WSO

WatscoA
NYSE / Capital Goods
Last Price
Quote time unavailable
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Current thesis
A normalized HVAC environment, completion of the A2L transition, Jackson Supply density, technology adoption and a debt-free balance sheet could support renewed organic and acquisition-led growth.
Posture
Constructive
Lead driver
Sentiment
What changed
Sentiment remains the lead driver in the composite, 7D delta -0.7.
What can break
Forward guidance detail, post-earnings analyst revisions and reliable post-print price reaction are unavailable in the packet.
Momentum
37
Value
54
Sentiment
80
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $370.00 · Bull $410.00 · Bear $285.00Analysis 2026-08-05; returns require an exact persisted reference.
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-08-17 • Vendor: Data Vendor v1
Scores
As of 2026-09-18 • Model: HYBRID_IC_RP
AI Memo
As of 2026-08-05 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-09-18

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-09-18. Definitions

Supporting evidence
What
Grade A · Constructive
Confidence Medium · Net Neutral
Target $373.22
Why
Momentum37 · Δ7d +17.6
Value54 · Δ7d +0.1
Sentiment80 · Δ7d -0.7
So what
Strength-led posture (Net Neutral). Favor watchlist adds and disciplined entries.

Confirming evidence

  • • Sentiment remains the lead driver in the composite, 7D delta -0.7.

Contradictions & invalidation

  • • Forward guidance detail, post-earnings analyst revisions and reliable post-print price reaction are unavailable in the packet.
  • • Gross margin fell to 27.5% from 29.3%, while operating income declined 12%.
  • • The Q2 earnings miss, lower gross margin and lower operating income show that normalization is not yet translating into clean earnings growth.

Catalyst clock

2026-07-29

Q2 earnings show stabilization but miss expectations

Lead driver: Sentiment · See AI snapshot
Momentum
37
9% active weight
Current posture
7d trendImproving
Δ7d
+17.6
Δ21d
+36.0
Value
54
28% active weight
Current posture
7d trendFlat
Δ7d
+0.1
Δ21d
+0.0
Sentiment
80
62% active weight
Current posture
7d trendSoftening
Δ7d
-0.7
Δ21d
+0.3
Why this grade

Composite grade A. Momentum 37.1 / Value 53.5 / Sentiment 80.4

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-08-05. Scenario method

B+
Bull case
25%
Probability
Target price
$410.00
Analysis reference price unavailable
Analysis 2026-08-05 · RankAlpha Sentiment Codex
Most likely
B
Base case
50%
Probability
Target price
$370.00
Analysis reference price unavailable
Analysis 2026-08-05 · RankAlpha Sentiment Codex
B-
Bear case
25%
Probability
Target price
$285.00
Analysis reference price unavailable
Analysis 2026-08-05 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-08-17
Market Cap
$12.89B
Beta
1.03
Shares Out
41.25M
P/E (TTM)
27.5
P/S (TTM)
1.92
P/FCF (TTM)
252.67
Rev YoY
+2.1%
EPS YoY
-11.7%
Gross Margin
+26.9%
Op Margin
+9.0%
Net Debt
-$254.5M
Current Ratio
3.20
As of 2026-09-18 • Updated nightlySource: Internal modelMethods & Data