Stock in the Limelight: Watsco, Inc. (NYSE:WSO)

Are shares of Watsco, Inc. (NYSE:WSO) ready to make a move?  Increased volatility and interest from bargain investors have put the stock on a number of investor’s watchlists of late.  The stock is pricing at $142.92 after moving -0.11% from the opening bell. 

Investors may be drawing up a plan for the stretch run of the calendar year. With stocks riding high, the plan may involve looking at some different classes of shares. If the portfolio is full of large caps, investors may be looking for some small cap growth stocks to add to the mix. Investors may also be looking into purchasing some foreign stocks to get the portfolio as diversified as possible. Investors may also choose to select shares from various industries. Comparing stocks among peers can be a useful way to decide which ones might be ahead of the curve and poised for an upward move.

Let’s take a quick look at how the price of Watsco, Inc. (NYSE:WSO) is currently trading in comparison to some of its simple moving averages. At current levels, shares have been seen trading -2.46% away from the 20-day moving average. The stock has been recently separated from the 50-day moving average by -0.90%. Using a broader approach, the stock has been trading -13.28% off of the 200-day moving average. After the latest check-in, shares are -8.37% off of the 50 day high and 8.37% away from the 50 day low number.

In terms of performance, shares of Watsco, Inc. (NYSE:WSO) are 2.72% since the start of 2016. Over the past week, shares are -6.58%. Moving out to look at the previous month performance, the stock is at -1.01%. For the quarter, performance is at -3.02%. During the past six months, Watsco, Inc. (NYSE:WSO)’s stock has been -17.62% and -14.64% for the last 12 months.

Some traders may be employing technical analysis to try and conquer the market. There are plenty of various indicators that traders can use. Studying different technical indicators can provide some good insight, but the individual investor may want to start by focusing on a few different popular ones. Deciding which indicators to use may require a significant amount of homework. Trying to track too many signals at first might not be the best idea, and it may even create more confusion. Once the indicators have been chosen, traders may spend a good amount of time back testing strategies before making some trades.

Even professional traders can sometimes guess wrong about market direction. Many traders may have to balance emotion with the fear of missing out on a strong market move. Investors may be tempted to jump on the bullish bandwagon when stocks are powering higher. Investors on the wrong side of the market swing may have to consider what may be in store over the next few months. It’s only natural to pause and take a little breather once in a while. Investors may be chomping at the bit to buy up the dips if the market continues to advance. Fresh buying opportunities can surface at any moment, and the prepared trader may be poised to take full advantage. Keeping a close watch on earnings beats may help investors catch the wave early enough to secure some future profits.

Analyst Views

Wall Street brokerage firms that regularly cover the stock have provided price targets and recommendations on Watsco, Inc. (NYSE:WSO). According to First Call, the consensus price target for the company is $160.17. The consensus recommendation provided by analysts is currently 2.80. This number is based on a scale from 1 to 5. Analysts rating the company a 1 or 2 indicate a Buy recommendation. Analysts rating the company a 4 or 5 indicate a Sell recommendation. Analysts rating the company a 3 indicate a Hold recommendation.