Watsco Inc Stock Market Value
| WSO Stock | USD 554.67 4.17 0.76% |
| Symbol | Watsco |
Watsco Inc Price To Book Ratio
Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Watsco. If investors know Watsco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Watsco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.03) | Dividend Share 10.3 | Earnings Share 12.98 | Revenue Per Share 200.984 | Quarterly Revenue Growth 0.016 |
The market value of Watsco Inc is measured differently than its book value, which is the value of Watsco that is recorded on the company's balance sheet. Investors also form their own opinion of Watsco's value that differs from its market value or its book value, called intrinsic value, which is Watsco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Watsco's market value can be influenced by many factors that don't directly affect Watsco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Watsco 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Watsco's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Watsco.
| 09/29/2024 |
| 11/28/2024 |
If you would invest 0.00 in Watsco on September 29, 2024 and sell it all today you would earn a total of 0.00 from holding Watsco Inc or generate 0.0% return on investment in Watsco over 60 days. Watsco is related to or competes with Fastenal, SiteOne Landscape, Ferguson Plc, WW Grainger, Pool, MSC Industrial, and Applied Industrial. Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and relate... More
Watsco Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Watsco's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Watsco Inc upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.82 | |||
| Information Ratio | 0.0814 | |||
| Maximum Drawdown | 9.14 | |||
| Value At Risk | (3.21) | |||
| Potential Upside | 2.52 |
Watsco Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Watsco's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Watsco's standard deviation. In reality, there are many statistical measures that can use Watsco historical prices to predict the future Watsco's volatility.| Risk Adjusted Performance | 0.1227 | |||
| Jensen Alpha | 0.0874 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.0785 | |||
| Treynor Ratio | 0.1744 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Watsco's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Watsco Inc Backtested Returns
Watsco appears to be very steady, given 3 months investment horizon. Watsco Inc shows Sharpe Ratio of 0.15, which attests that the company had a 0.15% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Watsco Inc, which you can use to evaluate the volatility of the company. Please utilize Watsco's Market Risk Adjusted Performance of 0.1844, downside deviation of 1.82, and Mean Deviation of 1.38 to validate if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Watsco holds a performance score of 11. The firm maintains a market beta of 1.48, which attests to a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Watsco will likely underperform. Please check Watsco's sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change , to make a quick decision on whether Watsco's historical returns will revert.
Auto-correlation | -0.23 |
Weak reverse predictability
Watsco Inc has weak reverse predictability. Overlapping area represents the amount of predictability between Watsco time series from 29th of September 2024 to 29th of October 2024 and 29th of October 2024 to 28th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Watsco Inc price movement. The serial correlation of -0.23 indicates that over 23.0% of current Watsco price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.23 | |
| Spearman Rank Test | -0.21 | |
| Residual Average | 0.0 | |
| Price Variance | 876.93 |
Watsco Inc lagged returns against current returns
Autocorrelation, which is Watsco stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Watsco's stock expected returns. We can calculate the autocorrelation of Watsco returns to help us make a trade decision. For example, suppose you find that Watsco has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Watsco regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Watsco stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Watsco stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Watsco stock over time.
Current vs Lagged Prices |
| Timeline |
Watsco Lagged Returns
When evaluating Watsco's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Watsco stock have on its future price. Watsco autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Watsco autocorrelation shows the relationship between Watsco stock current value and its past values and can show if there is a momentum factor associated with investing in Watsco Inc.
Regressed Prices |
| Timeline |
Pair Trading with Watsco
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Watsco position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Watsco will appreciate offsetting losses from the drop in the long position's value.Moving together with Watsco Stock
| 0.89 | DXPE | DXP Enterprises | PairCorr |
| 0.82 | FAST | Fastenal Fiscal Year End 16th of January 2025 | PairCorr |
| 0.76 | FERG | Ferguson Plc | PairCorr |
| 0.93 | AIT | Applied Industrial | PairCorr |
Moving against Watsco Stock
| 0.65 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.47 | GIC | Global Industrial | PairCorr |
| 0.4 | TRNS | Transcat | PairCorr |
The ability to find closely correlated positions to Watsco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Watsco when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Watsco - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Watsco Inc to buy it.
The correlation of Watsco is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Watsco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Watsco Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Watsco can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Watsco Correlation, Watsco Volatility and Watsco Alpha and Beta module to complement your research on Watsco. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Watsco technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.