NEW YORK - Watsco (NYSE:WSO), Inc., a company known for its consistent profitability and financial stability, has become a preferred investment choice, contrasting with the high-risk ventures often sought by speculators. The firm, which trades on the New York Stock Exchange under the symbol NYSE: WSO, has demonstrated an impressive earnings per share (EPS) growth rate of 30% annually over the past three years. This growth is complemented by steady earnings before interest and taxes (EBIT) margins and robust revenue figures.
The confidence in Watsco is further bolstered by the considerable stake its insiders hold in the company. With investments worth approximately $960 million, the substantial insider ownership underscores a strong commitment to the company's future and provides shareholders with a sense of assurance about Watsco's direction and governance.
Watsco's performance and insider investment are indicative of a business that has earned investor trust through solid financial results and a clear demonstration of aligned interests between the company's management and its shareholders.
InvestingPro Insights
In line with the article's focus on Watsco's consistent profitability and financial stability, InvestingPro data and tips provide additional insights. As of Q3 2023, Watsco boasts a market capitalization of $13.85 billion and a P/E ratio of 24.84, indicating the company's substantial size and its relatively high valuation compared to earnings.
InvestingPro Tips reveals that Watsco yields a high return on invested capital and consistently increases its earnings per share, reinforcing the article's point about the company's profitability. Moreover, the company has raised its dividend for 10 consecutive years, further demonstrating its financial stability and commitment to rewarding shareholders.
For those interested in more detailed information and additional tips, InvestingPro offers a comprehensive set of 17 tips related to Watsco, along with real-time data metrics. These can provide valuable insights for potential investors and those seeking a deeper understanding of the company's financial performance.
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