Watsco, Inc. (NYSE:WSO) is included among the 15 Best 52-Week Low Dividend Stocks to Invest in.
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On November 6, UBS lowered its price target on Watsco, Inc. (NYSE:WSO) to $390 from $425 and kept a Neutral rating on the stock, as reported by The Fly.
In the third quarter of 2025, the company reported revenue of $2.07 billion, which fell 4% from the same period last year. Gross profit held steady at $569 million, while SG&A expenses rose 5%.
Watsco, Inc. (NYSE:WSO) operates as the largest distributor in the $74 billion North American HVAC/R market, which remains highly fragmented. Since it entered distribution in 1989, the company has generated an 18% compound annual total-shareholder return by driving strong organic growth and acquiring more than 70 leading businesses.
Watsco, Inc. (NYSE:WSO) maintains a strong financial position with over $640 million in cash and investments and no debt. This allows the company to continue investing in growth, especially in its technology platforms. More than 72,000 contractors, installers, and technicians actively use these platforms, which help the company expand its customer base and reduce attrition.
Watsco, Inc. (NYSE:WSO) is now advancing new AI-driven initiatives to enhance the customer experience and improve efficiency. As more contractors adopt digital tools and rely on data-driven solutions, these investments position the company to capture additional market share.
While we acknowledge the potential of WSO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.