Core Viewpoint - Watsco reported quarterly earnings of $1.68 per share, missing the Zacks Consensus Estimate of $1.94 per share, and showing a decline from $2.37 per share a year ago, indicating a negative earnings surprise of -13.33% [1] Financial Performance - The company posted revenues of $1.58 billion for the quarter ended December 2025, which was 1.88% below the Zacks Consensus Estimate and a decrease from $1.75 billion in the same quarter last year [2] - Watsco has not surpassed consensus EPS estimates over the last four quarters, indicating a consistent trend of underperformance [2] Stock Performance and Outlook - Watsco shares have increased by approximately 24% since the beginning of the year, contrasting with a slight decline of 0.1% in the S&P 500 [3] - The future performance of Watsco's stock will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.91 on revenues of $1.54 billion, while for the current fiscal year, the estimate is $12.91 on revenues of $7.52 billion [7] - The trend of estimate revisions for Watsco has been unfavorable, resulting in a Zacks Rank of 4 (Sell), suggesting expected underperformance in the near future [6] Industry Context - The Manufacturing - General Industrial industry, to which Watsco belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a relatively strong position within the market [8] - The performance of Watsco's stock may also be influenced by the overall outlook for the industry, as higher-ranked industries tend to outperform lower-ranked ones significantly [8]

Market Overview - U.S. stock markets have continued to rise in early August despite trade uncertainties and the Federal Reserve's indecision regarding interest rate cuts in 2025 [1][2] - The outcome of the Fed's annual Jackson Hole Symposium, scheduled for August 21-23, is anticipated to be significant [2] Stock Performance - Few stocks have demonstrated price strength, with a focus on those recently experiencing a bull run [3] - Five highlighted stocks include Modine Manufacturing Co. (MOD), Tutor Perini Corp. (TPC), Kiniksa Pharmaceuticals International plc (KNSA), Life360 Inc. (LIF), and Euroseas Ltd. (ESEA) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last twelve weeks [5] - Zacks Rank 1 (Strong Buy) and an average broker rating of 1 are also key indicators of potential performance [6] - Stocks must be trading at a minimum price of $5 and be near their 52-week highs, with a current price/52-week high-low range greater than 85% [7] Individual Stock Highlights - **Modine Manufacturing (MOD)**: Stock price increased by 46.1% in four weeks, with an expected earnings growth rate of 14.3% for the current year [8][10] - **Tutor Perini (TPC)**: Stock price surged 14.3% in four weeks, with an expected earnings growth rate exceeding 100% for the current year [14] - **Kiniksa Pharmaceuticals (KNSA)**: Stock price climbed 13.7% in four weeks, with expected earnings growth over 100% for the current year [15] - **Life360 (LIF)**: Stock price advanced 8.3% in four weeks, with expected earnings growth over 100% for the current year [17] - **Euroseas (ESEA)**: Stock price gained 2.8% in four weeks, with an expected earnings growth rate of 4% for the current year [19]