The analyst believes WSO has a defensive business, including exposure to a large residential replacement market (75%-80% of mix vs. new) and a strong foothold in the Sunbelt region (80%+ sales).

Linzey notes the company's market share dominance and expects continued market share gains and M&A.

The analyst anticipates the company to drive investment mainly in e-commerce and technology enhancement, boosting the company's market position.

However, the analyst is cautious about adverse changes in weather, weak consumer confidence and residential replacement cycling off-peak. 

Linzey expects revenues and adjusted EPS of $7.52 billion and $14.50 for 2023 and $7.85 billion and $15.00 for 2024, respectively. 

Price Action: WSO shares are trading higher by 0.58% at $369.12 on the last check Tuesday.