Watsco stock hits 52-week low at $435.51 amid market shifts

Watsco Inc . (NYSE:WSO), a leading distributor of air conditioning, heating, and refrigeration equipment, has seen its stock price touch a 52-week low, reaching $435.51. The company, which boasts a "GOOD" financial health rating according to InvestingPro, has maintained dividend payments for an impressive 42 consecutive years, with a current dividend yield of 2.71%. This downturn reflects a broader market trend that has seen many stocks retract from their previous highs. Over the past year, Watsco’s stock has experienced a decline of 7.91%, indicating a period of bearish sentiment among investors. With a current P/E ratio of 34.03 and trading at high EBITDA and Price/Book multiples, analysis suggests the stock may be overvalued. The company’s performance, while still within a challenging economic environment, continues to be closely monitored by market analysts and shareholders alike, as they assess the potential for recovery or further decline in the coming months. Notably, the company maintains strong liquidity with a current ratio of 3.28 and operates with moderate debt levels. Discover 10 more exclusive insights about WSO with a comprehensive Pro Research Report on InvestingPro.

In other recent news, Watsco Inc. reported its financial results for the first quarter of 2025, revealing an earnings per share (EPS) of $1.93, which was below the expected $2.26. The company’s revenue also missed forecasts, coming in at $1.53 billion compared to the anticipated $1.66 billion. Despite these results, Watsco increased its annual dividend by 11% to $12 per share. The company is currently navigating a transition to A2L refrigerant systems, which has impacted sales figures, but is expected to benefit future sales as the new systems are fully integrated.

In a strategic move to enhance its distribution network, Watsco recently completed the acquisition of Southern Ice Equipment Distributors. This marks Watsco’s third acquisition in 2025, following the acquisitions of Lashley & Associates and Hawkins (NASDAQ:HWKN) HVAC Distributors earlier in the year. These acquisitions have added 10 new locations and approximately $47 million in annualized sales to Watsco’s portfolio.

Additionally, Watsco is actively seeking further investment opportunities to expand its reach. The company has emphasized its commitment to supporting growth with advanced technology and fostering a culture of innovation. As part of its climate change mitigation efforts, Watsco estimates it has helped avert approximately 23.7 million metric tons of CO2e emissions through the sale of high-efficiency replacement systems.

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