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A month has gone by since the last earnings report for Watsco (WSO). Shares have lost about 0.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Watsco due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Watsco has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Watsco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Watsco is part of the Zacks Building Products - Air Conditioner and Heating industry. Over the past month, Carrier Global (CARR), a stock from the same industry, has gained 2.6%. The company reported its results for the quarter ended December 2024 more than a month ago.
Carrier Global reported revenues of $5.15 billion in the last reported quarter, representing a year-over-year change of +0.9%. EPS of $0.54 for the same period compares with $0.53 a year ago.
For the current quarter, Carrier Global is expected to post earnings of $0.57 per share, indicating a change of -8.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.6% over the last 30 days.
Carrier Global has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Watsco, Inc. (WSO) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).