Watsco is the Amazon of air conditioning parts—a giant distributor that stocks everything HVAC contractors need, from compressors to copper tubing, and delivers it across the Americas.
Money comes from selling HVAC equipment and parts to contractors, with gross margins around 28% and net margins near 7%—a steady, recurring business tied to repair and replacement demand.
Its vast network of local warehouses and decades-long relationships with contractors create real switching costs, but big manufacturers like Carrier and Trane could squeeze margins by selling direct.
Key events, in time order
Institutional stake change signals shift in large investor sentiment
Q2 EPS of $4 misses $4.38 estimate; shares fall 12.9% to $320, hitting 52-week low
Shares fell to $312.42, a new 52-week low, down 12.9%
None yet
None yet
The user expresses a desire to buy more AC stocks, including $WSO, indicating a bullish sentiment towards the sector and its related companies.
Main discussion
No comments yet.
Facts and opinions separated · All items sourced · Not investment advice
