Watsco Inc. (WSO): Today's Featured Wholesale Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Watsco ( WSO) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Watsco fell $1.18 (-1.2%) to $92.95 on heavy volume. Throughout the day, 605,003 shares of Watsco exchanged hands as compared to its average daily volume of 302,200 shares. The stock ranged in price between $92.34-$94.11 after having opened the day at $94.05 as compared to the previous trading day's close of $94.13. Other companies within the Wholesale industry that declined today were: Crystal Rock Holdings ( CRVP), down 7.0%, Bluelinx Holdings ( BXC), down 6.5%, China Metro-Rural Holdings ( CNR), down 6.0% and InfoSonics Corporation ( IFON), down 5.4%.

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment in the United States, Canada, Puerto Rico, and Mexico. Watsco has a market cap of $2.8 billion and is part of the services sector. The company has a P/E ratio of 28.5, above the S&P 500 P/E ratio of 17.7. Shares are down 2.0% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Watsco a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Watsco as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, China Auto Logistics ( CALI), up 22.4%, MSC Industrial Direct ( MSM), up 3.8%, Forward Industries ( FORD), up 3.2% and Global Partners ( GLP), up 2.7% , were all gainers within the wholesale industry with McKesson ( MCK) being today's featured wholesale industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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