Watsco is still well oriented and on its way back to highs.
The distributor of heating and refrigeration equipment seller continues to record rising performances. Sales in 2013 rose 8% mainly helped by its business units in Canada. In fact, the company reported higher earnings than estimates for the first quarter 2014. Encouraging improvements are anticipated in margins that joined to better figures could generate higher earnings for the current fiscal year. At the same time, debts should gradually decrease from $211 million in 2013 to finally achieve $62 million in 2016.
The stock has initiated a sharp bullish trend at the beginning of the year 2014, mainly due to strong fundamentals and having the ascending triangle bounds as main reference for moves in prices. This positive evolution could continue at least in the short term, supported by the 20 and 50-day moving average. Then, the share could attain its records and maybe continue the rally toward new historical trading prices.
It could be wise to own shares at current prices and thus benefiting from the bullish signal of crossing means. The target could be set at USD 104. Once the position opened, a stop loss should be fixed under effective entry point to protect the position from a trend reversal.
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Watsco, Inc. is engaged in the distribution of air conditioning, heating and refrigeration equipment and related parts and supplies (HVAC/R) 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. It also sells a variety of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. It distributes products manufactured by Flexible Technologies, Inc. (Flexible Technologies), Resideo Technologies, Inc. (Resideo), Copeland Corporation, LLC, The Chemours Company (Chemours), Mueller Industries, Inc. (Mueller), and Welbilt, Inc. (Welbilt), among others. The Company operates in approximately 692 locations.
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Investor
Investor
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Global
Global
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Quality
Quality
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ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
