B+76/100

Is Watsco Inc (WSO) a risky stock?

Sector: Trading Companies & Distributors Price: $359.85 Composite: 76/100

As of July 24, 2026, Clavix grades Watsco Inc (WSO) B+ for risk, a composite score of 76 out of 100 on an A+ to F scale, which puts WSO in the "solid" band. The grade is a risk read for educational purposes, not a buy or sell recommendation.

Grade as of July 24, 2026. Clavix regrades every trading day.

The five risk dimensions behind WSO's grade

Each Clavix grade is a composite of five independent reads. Higher is safer. Here is how WSO scores on each, as of July 24, 2026.

Financial healthbalance sheet, margins, cash flow
79
News sentimentscored, sourced recent coverage
57
Macro exposuresensitivity to rates, dollar, oil
69
Sector resiliencestrength vs the broad market
59
Price stabilitydrawdown and volatility
45

What's moving WSO's risk right now

Company-specific signals Clavix flags behind WSO's current grade, drawn from recent news and filings as of July 24, 2026.

Demand · raising risk

HVAC distributors tracked by HARDI saw a 4.8% sales drop in May, the start of the cooling season. For Watsco, the largest HARDI-affiliated distributor, this points to weaker organic demand and likely low single-digit annual sales growth.

Earnings & results · mixed signal

Wall Street expects Watsco to top earnings estimates, and Morgan Stanley raised its price target to $405 while keeping an equal-weight rating. Japan's Sumitomo Mitsui Trust also added shares last quarter, a mild vote of confidence.

Competition · raising risk

Canada's Master Group bought Distributor Corporation of New England, its first U.S. expansion since early 2023. The deal adds a competing HVAC distributor to Watsco's home turf in the Northeast.

Recent WSO news

The latest headlines Clavix ingested for Watsco Inc, newest first. These feed the news-sentiment dimension of WSO's grade.

What a B+ grade means

On the Clavix A+ to F scale, WSO's composite of 76 falls in the B band (65–79), read as "solid." The scale is fixed, so the meaning never moves.

A+AA-B+BB-C+CC-D+DD-F
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This page is generated from Clavix's own risk model and is for educational purposes only. It is not investment advice or a recommendation to buy or sell WSO or any security. Grades are risk indicators, not predictions of return. Data may be delayed.