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Wesco International (WCC) Gains As Market Dips: What You Should Know

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In the latest trading session, Wesco International (WCC - Free Report) closed at $134, marking a +0.44% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.74%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.15%.

Coming into today, shares of the maker of electrical and industrial maintenance supplies and construction materials had gained 15.91% in the past month. In that same time, the Computer and Technology sector gained 3.19%, while the S&P 500 gained 4.58%.

Investors will be hoping for strength from Wesco International as it approaches its next earnings release, which is expected to be November 3, 2022. The company is expected to report EPS of $4.35, up 58.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.54 billion, up 17.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.98 per share and revenue of $21.35 billion, which would represent changes of +60.12% and +17.17%, respectively, from the prior year.

Any recent changes to analyst estimates for Wesco International should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. Wesco International is currently a Zacks Rank #3 (Hold).

Digging into valuation, Wesco International currently has a Forward P/E ratio of 8.35. This represents a premium compared to its industry's average Forward P/E of 7.2.

It is also worth noting that WCC currently has a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WCC in the coming trading sessions, be sure to utilize Zacks.com.


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