Shares of WSO.N declined sharply today, reaching a 52-week low as market sentiment turned bearish. The stock's recent price action reflects a significant downturn, with current trading around $333.15. This decline coincides with increased activity in options trading, particularly in put contracts, which are currently priced at a bid of $7.50 for a $320.00 strike, suggesting a potential buy-in at a 4% discount from the current price.
The breach of the 52-week low indicates heightened bearish momentum, as traders weigh the implications of the stock's performance against its options market. The put contracts carry a 65% chance of expiring worthless, while the call contracts at a $340.00 strike show a 53% likelihood of similar outcomes, reflecting a cautious outlook among investors.
Market volatility remains a key factor, with implied volatility for puts at 33% and calls at 36%, indicating a market expectation of continued fluctuations. The YieldBoost concept is also noteworthy, with potential annualized returns of 15.01% for puts and 23.45% for calls if they expire worthless, highlighting the strategic positioning of traders amidst the stock's recent struggles.
Wall Street analysts forecast WSO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WSO is 394.14 USD with a low forecast of 349.00 USD and a high forecast of 460.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast WSO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WSO is 394.14 USD with a low forecast of 349.00 USD and a high forecast of 460.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
7 Hold
1 Sell
Hold
Current: 385.140
Low
349.00
Averages
394.14
High
460.00
Current: 385.140
Low
349.00
Averages
394.14
High
460.00
JPMorgan
Neutral
maintain
$360 -> $370
2026-01-16
Reason
JPMorgan
Price Target
$360 -> $370
AI Analysis
2026-01-16
maintain
Neutral
Reason
JPMorgan raised the firm's price target on Watsco to $370 from $360 and keeps a Neutral rating on the shares. The firm adjusted ratings and targets in the electrical equipment and multi-industry group as part of its Q4 earnings preview. JPMorgan is more positive on "growth related names into and out of the quarter."
Mizuho
Neutral
downgrade
$400 -> $370
2026-01-05
Reason
Mizuho
Price Target
$400 -> $370
2026-01-05
downgrade
Neutral
Reason
Mizuho lowered the firm's price target on Watsco to $370 from $400 and keeps a Neutral rating on the shares. The firm adjusted ratings and price targets in the electrical equipment and multi-industry group as part of its 2026 outlook. It sees "uneven terrain ahead" for the sector but says the "tariff fog" is clearing.
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UBS
Neutral
downgrade
$390 -> $370
2026-01-05
Reason
UBS
Price Target
$390 -> $370
2026-01-05
downgrade
Neutral
Reason
UBS resumed coverage of Watsco with a Neutral rating with a price target of $370, down from $390. Conversations with 20 Multi-Industry companies suggest Q4 reporting is unlikely to be a major catalyst, as full-year expectations are well calibrated and December commentary limits surprise potential, the analyst tells investors in a research note. Initial 2026 guidance may be conservative, with upside opportunities later, says UBS.
Wolfe Research
Underperform
downgrade
$372 -> $349
2025-12-09
Reason
Wolfe Research
Price Target
$372 -> $349
2025-12-09
downgrade
Underperform
Reason
Wolfe Research lowered the firm's price target on Watsco to $349 from $372 and keeps an Underperform rating on the shares as part of a 2026 outlook for the multi-industry group. The firm says that while 2025 has been a "tough slog" for the sector, it is reasonable to expect a "modest broadening-out of growth" in 2026, given revenue momentum in the second half of 2025 and support from interest rate cuts. For the third year, Wolfe supports short cycle rotation, the analyst tells investors in a research note.
About WSO
Watsco, Inc. is a distributor of heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico, and Puerto Rico, and on an export basis to Latin America and the Caribbean. The Company sells products to the commercial refrigeration market, which include condensing units, compressors, evaporators, valves, refrigerants, walk-in coolers, and ice machines for industrial and commercial applications. Additionally, it sells a variety of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. The Company distributes products manufactured by Flexible Technologies, Inc., a subsidiary of Smiths Group plc, Resideo Technologies, Inc., Southwark Metal Mfg. Co., Johns Manville, a subsidiary of Berkshire Hathaway, Inc., and Owens Corning Insulating Systems, LLC, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
