In this article, we discuss the 5 best stocks to buy according to Motley Fool. If you want to see more stocks in this selection, click 10 Best Stocks to Buy According to Motley Fool.
5. Watsco, Inc. (NYSE:WSO)
Motley Fool’s Stake Value: $56,680,000
Percentage of Motley Fool’s 13F Portfolio: 3.62%
Number of Hedge Fund Holders: 31
Watsco, Inc. (NYSE:WSO) is a Florida-based company that provides air conditioning, heating, refrigeration, and plumbing equipment. Securities filings for Q4 2021 disclosed that Motley Fool owned 181,156 Watsco, Inc. (NYSE:WSO) shares, worth $56.6 million, representing 3.62% of the total 13F securities.
Watsco, Inc. (NYSE:WSO) posted its Q1 2022 financial results on April 21, reporting earnings per share of $2.90, outperforming market estimates by $1.10. Revenue for the quarter grew 34.10% year-over-year to $1.52 billion, topping analysts’ predictions by $135.17 million.
On April 22, Baird analyst David Manthey raised the firm’s price target on Watsco, Inc. (NYSE:WSO) to $350 from $300 and maintained a Neutral rating on the shares. The analyst said sustainability of gross margin remains a primary question, and although he expects some normalization as compared to highly elevated Q1 levels, he sees a fraction of the improvement as sustainable. The analyst views Watsco, Inc. (NYSE:WSO)’s strengthened OEM partnerships, technology advancements, improved sales, and the company’s internal parts initiative continuing in the foreseeable future.
In Q4 2021, 31 hedge funds in the database of Insider Monkey reported owning stakes worth $445.5 million in Watsco, Inc. (NYSE:WSO), compared to 30 funds in the earlier quarter, holding stakes in the company valued at $414.8 million. Tom Gayner’s Markel Gayner Asset Management is the largest shareholder of Watsco, Inc. (NYSE:WSO), with 418,750 shares worth $131 million.