Barry Schwartz Watsco Inc WSO-N PAST TOP PICK Jan 04, 2023

Air conditioning. Many A/C units are very, very old. They have a tremendous opportunity for growth. (Analysts’ price target is $278.17)

Very well managed and are the largest distribution of heating, cooling and refrigeration products in the US. They have taken their large position and scale and combined it with technology to create a dominate position and win market share. The one caveat is that they may trade flat for a bit, but with the housing market being strong, it should still do well. Yield 2.57% (Analysts’ price target is $303.63)

New and replacement parts for about 90K HVAC contractors across NA. Best pricing, scale, online ordering tools. In the US, 90M units are over 10 years old and in need of replacing. Dividend has grown by 400% since 2014. Yield is 2.55%. (Analysts’ price target is $305.50)

(A Top Pick May 03/21, Down 18%) Has sold shares in company. Believes better opportunities elsewhere. Economic environment makes housing market tough.

Largest distributor of HVAC in NA, providing contractors with new and replacement parts. No debt. Over $500M of cashflow. Grows through acquisition. Recession-proof. 2025 is exciting, as new emissions regulations for A/C will kick in; new units at higher prices will kickstart the stock. Yield is 2.3%. 

(Analysts’ price target is $471.27)