12 Best Industrial Distribution Stocks to Buy According to Hedge Funds

5. Watsco, Inc. (NYSE:WSO)

Number of Hedge Fund Holders: 37

Watsco, Inc. (NYSE:WSO) is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies in the HVAC/R distribution industry in the Americas. The firm offers indoor comfort to homes and businesses despite the conditions with its extensive distribution network.

Watsco has crafted a national network of the finest HVAC distribution businesses in the United States and abroad for over 30 years. The firm serves as the largest and best-capitalized distributor of HVAC/R products in the industry through its business units positioning itself as a market leader in a highly fragmented  North American HVAC/R market industry. The firm claims that it offers services on a local basis to more than 375,000 owner-operators, technicians, and installers annually.

 As part of its solid growth strategy, Watsco has engaged in acquiring long-standing, family-owned businesses and has acquired eight businesses since August 2019, generating approximately $1 billion in annual sales now.