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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 $134.44, marking a +0.17% move from the previous day. This change outpaced the S&P 500's 1.42% loss on the day. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Prior to today's trading, shares of the maker of electrical and industrial maintenance supplies and construction materials had gained 8.64% over the past month. This has outpaced the Computer and Technology sector's loss of 4.18% and the S&P 500's gain of 0.39% in that time.

Investors will be hoping for strength from Wesco International as it approaches its next earnings release, which is expected to be February 15, 2022. The company is expected to report EPS of $2.52, up 106.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.62 billion, up 11.91% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Wesco International. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Wesco International is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Wesco International is currently trading at a Forward P/E ratio of 12.63. This valuation marks a premium compared to its industry's average Forward P/E of 8.68.

Investors should also note that WCC has a PEG ratio of 1.26 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WCC's industry had an average PEG ratio of 0.32 as of yesterday's close.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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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