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Watsco (WSO) Soars 7.2%: Is Further Upside Left in the Stock?
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Watsco (WSO - Free Report) shares ended the last trading session 7.2% higher at $327.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% loss over the past four weeks.
Watsco shares appreciated after the company announced a new five-year, $750 million revolving credit facility, providing greater financial flexibility to support working capital needs, acquisitions and dividends. Fundamentally, Watsco is benefiting from its extensive HVAC distribution network, acquisitions that expand its geographic reach and continued growth in e-commerce sales.
This heating and cooling company is expected to post quarterly earnings of $4.13 per share in its upcoming report, which represents a year-over-year change of +3.8%. Revenues are expected to be $2.21 billion, up 7.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Watsco, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WSO going forward to see if this recent jump can turn into more strength down the road.
Watsco belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, RBC Bearings (RBC - Free Report) , closed the last trading session 5.2% lower at $478.03. Over the past month, RBC has returned 0.9%.
RBC Bearings' consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $3.55. Compared to the company's year-ago EPS, this represents a change of +23.3%. RBC Bearings currently boasts a Zacks Rank of #4 (Sell).
View the Zacks #1 Rank List
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Watsco (WSO) Soars 7.2%: Is Further Upside Left in the Stock?
Watsco (WSO - Free Report) shares ended the last trading session 7.2% higher at $327.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% loss over the past four weeks.
Watsco shares appreciated after the company announced a new five-year, $750 million revolving credit facility, providing greater financial flexibility to support working capital needs, acquisitions and dividends. Fundamentally, Watsco is benefiting from its extensive HVAC distribution network, acquisitions that expand its geographic reach and continued growth in e-commerce sales.
This heating and cooling company is expected to post quarterly earnings of $4.13 per share in its upcoming report, which represents a year-over-year change of +3.8%. Revenues are expected to be $2.21 billion, up 7.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Watsco, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WSO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Watsco belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, RBC Bearings (RBC - Free Report) , closed the last trading session 5.2% lower at $478.03. Over the past month, RBC has returned 0.9%.
RBC Bearings' consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $3.55. Compared to the company's year-ago EPS, this represents a change of +23.3%. RBC Bearings currently boasts a Zacks Rank of #4 (Sell).