| WSO-B Stock | | | USD 535.00 15.30 2.94% |
Considering Watsco's profitability and operating efficiency indicators, Watsco Inc is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Watsco's ability to earn profits and add value for shareholders. The current year's
Price To Sales Ratio is expected to grow to 2.26. The current year's
Days Sales Outstanding is expected to grow to 50.48. At present, Watsco's
Operating Income is projected to increase significantly based on the last few years of reporting. The current year's
Income Before Tax is expected to grow to about 829.4
M, whereas
Accumulated Other Comprehensive Income is projected to grow to (40.2
M).
For Watsco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Watsco to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Watsco Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Watsco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Watsco Inc over time as well as its relative position and ranking within its peers.
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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 Inc Number Of Shares Shorted vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Watsco's current stock value. Our valuation model uses many indicators to compare Watsco value to that of its competitors to determine the firm's financial worth.
Watsco Inc is rated
below average in shares owned by institutions category among its peers. It also is rated
below average in number of shares shorted category among its peers making about
234.88 of Number Of Shares Shorted per Shares Owned By Institutions. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Watsco's earnings, one of the primary drivers of an investment's value.
Watsco Number Of Shares Shorted vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Watsco | Shares Held by Institutions | = | Funds and Banks | + | Firms |
| = | 0.43 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Watsco | Shares Shorted | = | Shorted by Public | + | by Institutions |
| = | 101 |
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Watsco Number Of Shares Shorted Comparison
Watsco is currently under evaluation in number of shares shorted category among its peers.
Watsco Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Watsco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Watsco will eventually generate negative long term returns. The profitability progress is the general direction of Watsco's change in net profit over the period of time. It can combine
multiple indicators of Watsco, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Watsco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Watsco. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Watsco position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Watsco's important profitability drivers and their relationship over time.
Use Watsco in pair-trading
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.
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.
Use Investing Themes to Complement your Watsco position
In addition to having Watsco in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Electronic Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electronic Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Electronic Equipment Theme or any other
thematic opportunities.
When determining whether Watsco Inc
offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock: To fully project Watsco's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Watsco Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Watsco's income statement, its balance sheet, and the statement of cash flows.
Potential Watsco investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Watsco investors may work on each financial statement separately, they are all related. The changes in Watsco's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Watsco's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
