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Wesco International (WCC) Moves 4.1% Higher: Will This Strength Last?

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Wesco International (WCC - Free Report) shares ended the last trading session 4.1% higher at $120. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.2% loss over the past four weeks.

WESCO International extended its rally, driven by strong momentum across construction, industrial and utility plus broadband businesses. Further, growing industry supply opportunities and strong adoption of supply chain solutions in cloud, data center and broadband projects remain major positives for the company. Additionally, the company is experiencing strong growth in Canada and other international markets, which in turn is instilling investor optimism in the stock.

Furthermore, WESCO’s solid execution and cost-reduction activities along with expanding OEM customer base, remain noteworthy.

This maker of electrical and industrial maintenance supplies and construction materials is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of +23.5%. Revenues are expected to be $4.71 billion, up 13.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Wesco International, the consensus EPS estimate for the quarter has been revised 5.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WCC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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