Is Watsco (WSO) an Attractive Investment Option?

Conestoga Capital Advisors, an asset management company, released its “SMid Cap Growth Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Conestoga SMid Cap Growth Composite rose 10.01% net of fees in the first quarter, compared to the Russell 2500 Growth Index’s 6.54% return. Both sector allocation and stock selection contributed positively to the performance of the fund in the quarter. The strategy also benefited from the market rotation. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga SMid Cap Growth Strategy highlighted stocks like Watsco, Inc. (NYSE:WSO) in the first quarter 2023 investor letter. Based in Miami, Florida, Watsco, Inc. (NYSE:WSO) distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. On May 26, 2023, Watsco, Inc. (NYSE:WSO) stock closed at $325.65 per share. One-month return of Watsco, Inc. (NYSE:WSO) was -5.54%, and its shares gained 27.48% of their value over the last 52 weeks. Watsco, Inc. (NYSE:WSO) has a market capitalization of $12.651 billion.

Conestoga SMid Cap Growth Strategy made the following comment about Watsco, Inc. (NYSE:WSO) in its Q1 2023 investor letter:

“Watsco, Inc. (NYSE:WSO): WSO is the nation’s largest distributor of heating, ventilation and air conditioning (HVAC) equipment, parts and supplies with 80% of revenue tied to the Sun Belt region. The stock reported a strong quarter and offered favorable commentary around holding its gross margin gains in 2022.”

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Watsco, Inc. (NYSE:WSO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Watsco, Inc. (NYSE:WSO) at the end of the first quarter 2023 which was 32 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.