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Why Watsco Is Poised to Outperform

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, air conditioning, heating, and refrigeration equipment manufacturer Watsco (NYSE: WSO  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Watsco and see what CAPS investors are saying about the stock right now.

Watsco facts

Headquarters (Founded)

Miami (1945)

Market Cap

$2.5 billion


Electronics wholesale

Trailing-12-Month Revenue

$3.3 billion


Chairman/CEO Albert Nahmad
CFO Ana Menendez

Return on Equity (Average, Past 3 Years)



$46.0 million / $202.2 million

Dividend Yield



Gustave A. Larson
Johnson Controls

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 199 members who have rated Watsco believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, PaulB102, tapped the stock as an attractive long-term, total-return opportunity:

Watsco is an extremely shareholder friendly company. Management salaries are reasonable and [the] company does not award huge amounts in options to top management.

I bought 300 shares of [Watsco] for $9,000 in 2004 when it was recommended by Motley Fool as "Top Ten Stocks" to Buy for the year (way before I subscribed to any Motley Fool publication). Today with reinvested dividends, my [Watsco stock] is worth over $32,000 (3.5 bagger after 8 years). Looking forward, there will always be a demand for air conditioning products even more with warming [weather] trends.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Watsco may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Related Tickers

9/23/2016 4:01 PM
JCI $44.39 Down -0.57 -1.27%
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Watsco CAPS Rating: ***