Watsco (Germany) Buy Hold or Sell Recommendation

WC3 Stock  EUR 466.80  3.40  0.73%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Watsco Inc is 'Strong Hold'. Macroaxis provides Watsco buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Watsco positions.
  
Check out Watsco Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Watsco and provide practical buy, sell, or hold advice based on investors' constraints. Watsco Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Watsco Buy or Sell Advice

The Watsco recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Watsco Inc. Macroaxis does not own or have any residual interests in Watsco Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Watsco's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell WatscoBuy Watsco
Strong Hold

Market Performance

InsignificantDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Watsco Inc has a Risk Adjusted Performance of 0.0498, Jensen Alpha of 0.0494, Total Risk Alpha of 0.0112, Sortino Ratio of 0.0343 and Treynor Ratio of 0.0795
Macroaxis provides trade recommendation on Watsco to complement and cross-verify current analyst consensus on Watsco Inc. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Watsco Inc is not overpriced, please check out all Watsco Inc fundamentals, including its gross profit, net income, and the relationship between the revenue and ebitda .

Watsco Trading Alerts and Improvement Suggestions

Over 99.0% of the company outstanding shares are owned by institutional investors

Watsco Returns Distribution Density

The distribution of Watsco's historical returns is an attempt to chart the uncertainty of Watsco's future price movements. The chart of the probability distribution of Watsco daily returns describes the distribution of returns around its average expected value. We use Watsco Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Watsco returns is essential to provide solid investment advice for Watsco.
Mean Return
0.1
Value At Risk
-2.91
Potential Upside
2.34
Standard Deviation
1.76
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Watsco historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Watsco Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Watsco or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Watsco's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Watsco stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.05
β
Beta against Dow Jones1.10
σ
Overall volatility
1.78
Ir
Information ratio 0.03

Watsco Volatility Alert

Watsco Inc has relatively low volatility with skewness of 0.88 and kurtosis of 4.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Watsco's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Watsco's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Watsco Fundamentals Vs Peers

Comparing Watsco's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Watsco's direct or indirect competition across all of the common fundamentals between Watsco and the related equities. This way, we can detect undervalued stocks with similar characteristics as Watsco or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Watsco's fundamental indicators could also be used in its relative valuation, which is a method of valuing Watsco by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Watsco to competition
FundamentalsWatscoPeer Average
Return On Equity0.33-0.31
Return On Asset0.15-0.14
Profit Margin0.08 %(1.27) %
Operating Margin0.11 %(5.51) %
Current Valuation10.04 B16.62 B
Shares Outstanding33.29 M571.82 M
Shares Owned By Insiders0.70 %10.09 %
Shares Owned By Institutions99.30 %39.21 %
Price To Earning22.14 X28.72 X
Price To Book5.34 X9.51 X
Price To Sales1.32 X11.42 X
Revenue7.27 B9.43 B
Gross Profit2.03 B27.38 B
EBITDA831.58 M3.9 B
Net Income601.17 M570.98 M
Cash And Equivalents55.91 M2.7 B
Cash Per Share1.62 X5.01 X
Total Debt89 M5.32 B
Debt To Equity25.10 %48.70 %
Current Ratio2.92 X2.16 X
Book Value Per Share52.18 X1.93 K
Cash Flow From Operations571.96 M971.22 M
Earnings Per Share14.53 X3.12 X
Price To Earnings To Growth4.57 X4.89 X
Target Price303.86
Number Of Employees7.2 K18.84 K
Beta0.89-0.15
Market Capitalization11 B19.03 B
Total Asset3.49 B29.47 B
Z Score75.88.72
Annual Yield0.03 %
Five Year Return2.33 %
Net Asset3.49 B

Watsco Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Watsco . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Watsco Buy or Sell Advice

When is the right time to buy or sell Watsco Inc? Buying financial instruments such as Watsco Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Watsco in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Corona Opportunity
Corona Opportunity Theme
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corona Opportunity Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Watsco Stock

When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock:
Check out Watsco Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.