WSO.B

Watsco (WSO) surged 7.2% following announcement of a new $750 million five-year revolving credit facility to support working capital, acquisitions, and dividends. The company benefits from its HVAC distribution network and e-commerce growth, with expected quarterly earnings of $4.13 per share (+3.8% YoY) and revenues of $2.21 billion (+7.1% YoY).

EPS estimates were revised 1.8% higher over the past month. Meanwhile, RBC Bearings (RBC) declined 5.2%, though it maintains a +23.3% YoY EPS growth expectation.

Flowserve is expected to report Q3 2026 earnings of $0.98 per share (up 8.9% YoY) with revenues of $1.24 billion (up 5.3% YoY) on October 28. However, recent analyst estimate revisions have turned slightly bearish, resulting in a negative Earnings ESP of -0.68%, making an earnings beat unlikely despite the company's strong historical track record of beating estimates.

Fastenal Company reported Q3 2026 earnings of 35 cents per share, beating consensus by 2.9% and growing 19.8% year-over-year, but net sales of $2.46 billion missed estimates by 1%. The company benefited from contract customer growth (18.8% daily sales increase), pricing actions (240 bps contribution), and operating margin expansion to 21.5%, though gross margin faced pressure from a mix shift toward larger customers. FAST stock declined 6.2% in pre-market trading following the announcement.

Fastenal is expected to report Q3 2026 earnings on October 14 with EPS estimated at 34 cents, representing 17.2% year-over-year growth. August daily sales grew 16.6% to $38.7M, driven by strong manufacturing demand and direct fastener sales.

While productivity gains and cost initiatives should support margins, unfavorable customer mix and higher freight costs present headwinds. The Zacks model does not predict an earnings beat.