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 0.7%. By the end of trading, Watsco fell $2.26 (-2.4%) to $93.30 on heavy volume. Throughout the day, 685,073 shares of Watsco exchanged hands as compared to its average daily volume of 350,800 shares. The stock ranged in price between $92.78-$95.91 after having opened the day at $95.15 as compared to the previous trading day's close of $95.56. Other companies within the Wholesale industry that declined today were: Addvantage Technologies Group ( AEY), down 15.5%, China Auto Logistics ( CALI), down 4.2%, InfoSonics Corporation ( IFON), down 3.8% and Forward Industries ( FORD), down 2.4%.

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. Shares are down 0.5% year to date as of the close of trading on Wednesday. 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 solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Louisiana-Pacific ( LPX), up 5.6%, China Metro-Rural Holdings ( CNR), up 5.4%, Empire Resources Incorporated ( ERS), up 4.9% and Commercial Vehicle Group ( CVGI), up 3.3% , were all gainers within the wholesale industry with Omnicare ( OCR) 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).

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