Why Watsco Is Poised to Outperform
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 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 |
Industry | Electronics wholesale |
Trailing-12-Month Revenue | $3.3 billion |
Management | Chairman/CEO Albert Nahmad |
Return on Equity (Average, Past 3 Years) | 13% |
Cash/Debt | $46.0 million / $202.2 million |
Dividend Yield | 3.2% |
Competitors | Gensco |
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.
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The article Why Watsco Is Poised to Outperform originally appeared on Fool.com.
Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Watsco. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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