New Lifetime High For Watsco (WSO)

Trade-Ideas LLC identified Watsco ( WSO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Watsco as such a stock due to the following factors:

  • WSO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.7 million.
  • WSO has traded 75,869 shares today.
  • WSO is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in WSO with the Ticky from Trade-Ideas. See the FREE profile for WSO NOW at Trade-Ideas

More details on WSO:

Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. The stock currently has a dividend yield of 2.6%. WSO has a PE ratio of 27. Currently there are 5 analysts that rate Watsco a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Watsco has been 231,500 shares per day over the past 30 days. Watsco has a market cap of $4.7 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.86 and a short float of 3.8% with 3.55 days to cover. Shares are up 14.7% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • WSO's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WSO's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WSO has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
  • WATSCO INC has improved earnings per share by 8.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WATSCO INC increased its bottom line by earning $4.89 versus $4.33 in the prior year. This year, the market expects an improvement in earnings ($5.55 versus $4.89).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Trading Companies & Distributors industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $24.07 million to $26.49 million.
  • Net operating cash flow has increased to $121.63 million or 17.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.45%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

11 Investing Lessons Jim Cramer Has Learned This Year

11 Investing Lessons Jim Cramer Has Learned This Year

Stocks Destined for a Plunge so Don't Let Thursday's Epic Dow Rally Fool You

Stocks Destined for a Plunge so Don't Let Thursday's Epic Dow Rally Fool You

Elon Musk Tells New York Times Tweet Was Attempt at Transparency

Elon Musk Tells New York Times Tweet Was Attempt at Transparency

Jim Cramer on How Companies Benefit From Helping Stakeholders

Jim Cramer on How Companies Benefit From Helping Stakeholders

Jim Cramer Breaks Down the Dramatic Changes Happening at Walmart

Jim Cramer Breaks Down the Dramatic Changes Happening at Walmart