Watsco, Inc. (NYSE: WSO) is benefiting from consistent investments in technological advancements and strategic buyouts. Also, the solid performance of heating, ventilation and air conditioning (HVAC) equipment and commercial refrigeration products segments added to the uptrend. It is steadily advancing toward its goal of expanding customer-focused technologies to a growing number of contractors.
Apart from Watsco's technology investments that are expected to drive future growth, WSO anticipates that industry-driven catalysts will support ongoing growth and profitability. These factors, along with its scale, technology platforms, OEM relationships and entrepreneurial culture, offer competitive advantages that position the company favorably for the long term.
Shares of WSO have increased 24.9% in the past six months compared with the Zacks Building Products - Air Conditioner and Heating industry's growth of 20.4%. The Zacks Consensus Estimate for WSO's 2024 sales and earnings per share indicates a rise of 4.7% and 1.2%, respectively, from the year-ago period's levels. However, seasonal sales trends, along with increased costs and expenses, are a concern.
Image Source: Zacks Investment Research
Let us discuss the factors that highlight why investors should retain the stock now.
Factors Driving Watsco's Growth
Technology Investment to Fuel Growth: Watsco is consistently investing in industry-leading technologies to remodel customer experience. It is using various new technologies to transform the homeowner experience, which will help the company expand its customer base. Currently, it has the industry's largest database of digitized product information, with more than 1.5 million SKUs being used by more than 375,000 technical contractors and technicians annually via the Product Information Management database. Also, its HVAC Pro+ Mobile apps provide customers with real-time access to critical information that ...
