Watsco Inc (WSO)
Watsco, Inc. distributes air conditioning, heating and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico and Puerto Rico. The company is headquartered in Miami, Florida.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 45.58% per annum.
- WSO price at the close of July 26, 2024 was $510.55 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 85.97% per annum.
- WSO price at the close of July 26, 2024 was inside the secondary price channel.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of WSO price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: September 15, 2022
End date: July 26, 2024
a = 4.3163
b = 0.0010
s = 0.0525
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 45.58%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0525) – 1
= 23.37%
September 15, 2022 calculations
Top border of price channel:
Exp(Y790)
= Exp(a + b × X790 + 2 × s)
= Exp(a + b × 1,144 + 2 × s)
= Exp(4.3163 + 0.0010 × 1,144 + 2 × 0.0525)
= Exp(5.5985)
= $270.01
Bottom border of price channel:
Exp(Y790)
= Exp(a + b × X790 – 2 × s)
= Exp(a + b × 1,144 – 2 × s)
= Exp(4.3163 + 0.0010 × 1,144 – 2 × 0.0525)
= Exp(5.3885)
= $218.87
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.3163 + 0.0010 × 1,824 + 2 × 0.0525)
= Exp(6.2982)
= $543.59
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.3163 + 0.0010 × 1,824 – 2 × 0.0525)
= Exp(6.0882)
= $440.63
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 45.58% per annum.
- WSO price at the close of July 26, 2024 was $510.55 and was inside the primary price channel.
Secondary Trend
Start date: February 13, 2024
End date: July 26, 2024
a = 3.1315
b = 0.0017
s = 0.0355
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 85.97%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0355) – 1
= 15.24%
February 13, 2024 calculations
Top border of price channel:
Exp(Y1,144)
= Exp(a + b × X1,144 + 2 × s)
= Exp(a + b × 1,660 + 2 × s)
= Exp(3.1315 + 0.0017 × 1,660 + 2 × 0.0355)
= Exp(6.0240)
= $413.21
Bottom border of price channel:
Exp(Y1,144)
= Exp(a + b × X1,144 – 2 × s)
= Exp(a + b × 1,660 – 2 × s)
= Exp(3.1315 + 0.0017 × 1,660 – 2 × 0.0355)
= Exp(5.8821)
= $358.56
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.1315 + 0.0017 × 1,824 + 2 × 0.0355)
= Exp(6.3027)
= $546.06
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.1315 + 0.0017 × 1,824 – 2 × 0.0355)
= Exp(6.1608)
= $473.83
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 85.97% per annum.
- WSO price at the close of July 26, 2024 was inside the secondary price channel.