WSO

During the quarter, our Strategy returned -2.96%, versus the 2.31% gain for the Russell 3000 Value Index. Bentley Systems, a newly initiated position during the quarter, is an example of a stock getting heavily discounted by a negative top-down industry narrative, with defensible and compelling long-term prospects. Our biggest contributor to performance in Q3 was MarketAxess Holdings, which operates the largest corporate bond e-trading platform in the U.S.

Watsco, Inc. is an American distributor of air conditioning, heating, and refrigeration equipment, as well as related parts and supplies. Watsco has increased its dividend for 13 consecutive years. Its 10-year dividend growth rate of 15.4% is impressive. Watsco has a stellar balance sheet. The company has no long-term debt. Moreover, it ended last fiscal year with nearly $800 million in cash.

Watsco remains overvalued with a 26x PE despite only 3% revenue growth in 2026. Recent earnings showed declining margins and EPS, raising concerns about structural weakness. Dividend payout now exceeds TTM EPS, posing a long-term risk to growth investment capacity.

Although the revenue and EPS for Watsco (WSO) give a sense of how its business performed in the quarter ended September 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Watsco (WSO) came out with quarterly earnings of $3.77 per share, missing the Zacks Consensus Estimate of $4.13 per share. This compares to earnings of $3.98 per share a year ago.

Recent Acquisitions, Entrepreneurial Culture, Strong Balance Sheet and Technology Advantage Position Company for Growth Recent Acquisitions, Entrepreneurial Culture, Strong Balance Sheet and Technology Advantage Position Company for Growth

Furnace parts and pipe fittings sound like the least exciting businesses imaginable, yet the companies stocking those shelves have quietly outpaced most of Wall Street over the past decade. Find out what makes replacement demand almost immune to consumer sentiment.

Watsco (WSO) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.

MIAMI, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) today announced that it has signed a $750 million unsecured senior revolving credit facility led by Bank of America, N.A. as Joint Lead Arranger, Sole Bookrunner and Administrative Agent and JPMorgan Chase Bank, N.A., PNC Bank, N.A., Wells Fargo Bank, N.A., and U.S. Bank N.A. as Joint Lead Arrangers and Co-Syndication Agents, along with five other banks. The new facility amends and extends Watsco's existing unsecured revolving credit facility.

Watsco (WSO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.