Blocked by a resistance situated at 174.83 USD, stocks in Watsco, Inc. do not appear to be able to achieve further gains in the short term. Investors should rather expect a downward move which should be considered the most probable scenario with a target at 165.51 USD.
Summary
● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
Strengths
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The tendency within the weekly time frame is positive above the technical support level at 155.62 USD
Weaknesses
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● With a 2019 P/E ratio at 26.71 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● Analysts covering the stock have recently lowered their earnings forecast.
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.
WATSCO, INC. 
