Watsco Reports Tuesday With Short Interest at a Six-Week High

WSO.B last traded at $287.50, down 8% on both the week and the month, carrying that loss into a Tuesday earnings report that arrives just six days after the one the data originally targeted.

Short interest has climbed to its highest level in six weeks, reaching 53.3 shares as of October 22, up 11% from the prior week. That follows a step up from 44.2 shares in early October to 48.0, and now another leg higher. The borrow cost has moved with it, reaching 1.82% on October 20, up sharply from 0.3% in mid-August, though still well below the 4.6% peak reached in October 2024. Critically, the lending market is nowhere near tight: availability is running at roughly 3,360% of short interest, meaning the pool of shares available to borrow dwarfs actual short demand by a factor of more than 33. The short score of 27.1 ranks in the bottom decile of the ORTEX universe, placing WSO.B firmly among the least-shorted names rather than the most contested.

The structural debate around Watsco has not changed materially from the previous preview. The core question remains whether residential replacement demand is recovering fast enough to justify the valuation. Bears point to sluggish HVAC volumes tied to high borrowing costs and cautious consumer spending; the stock's year-to-date decline of roughly 8 to 9% reflects that concern. What has shifted is the price action relative to peers: Ferguson Enterprises, WESCO International and QXO have all gained in recent weeks, making Watsco's inability to participate more visible. The factor score picture is mixed, with the analyst recommendation differential ranking in the 97th percentile and the dividend score equally elevated, while EPS momentum lags, sitting in the 17th percentile on a 90-day basis.

One ownership detail is worth noting. Albert Nahmad, who holds roughly 10.3% of shares, reduced his position by 295,532 shares as of October 15. That is the single largest change among top holders and the most recent. The passive managers, Capital Research (15.0%), BlackRock (10.9%) and both Vanguard entities, all added modestly in the quarter.

Tuesday's print will test whether volume trends through the third quarter justify a recovery narrative, or whether peer outperformance is a sector-wide story from which Watsco is simply being left behind.