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Here's Why You Should Bet on WESCO International (WCC) Stock
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WESCO International, Inc. (WCC - Free Report) is currently one of the top-performing stocks in the technology sector and an increase in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
The company has performed extremely well over the last six months and has the potential to carry on the momentum in the near term.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend shows that the stock has had an impressive run on the bourses over the last six months. WESCO has returned 13.2% against the industry’s gain of 1.2%.
Solid Rank & VGM Score: WESCO has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Eight estimates for the current year have moved north over the past 60 days against no southward revisions, reflecting analysts’ confidence in the stock. Over the same period, the Zacks Consensus Estimate for the current year has increased 4.0%. Also, for fiscal 2018, the Zacks Consensus Estimate has inched up 4.0% to $4.33.
Positive Earnings Surprise History: WESCO has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 5.1%.
Strong Growth Prospects: The company’s Zacks Consensus Estimate for fiscal 2017 earnings of $3.87 reflects year-over-year growth of 1.90%. Moreover, earnings are expected to register 11.8% growth in fiscal 2018. The stock has long-term expected earnings per share growth rate of 10%.
Growth Drivers:
WESCO has a comprehensive portfolio of products and services and a sizable global footprint, which will help it to grow.
Recently, the company gave an impressive view for 2018. WESCO foresees favorable market conditions and growth in its end markets in 2018. It expects sales growth in the range of 3% to 6%, earnings per share in the range of $4.05-$4.55, and free cash flow generation of at least 90% of net income in 2018.
This indicates that the company is benefiting from strength across all end markets and geographic regions.
Moreover, its board of directors authorized a share buyback program, which replaces the similar program ending this year. WESCO will repurchase up to $300 million worth of shares over the next three years.
Repurchasing shares will enable WESCO in offsetting the dilution of EPS and making opportunistic purchases to support growth.
We believe that WESCO is in a great position to grow sustainably and profitably based on its strong pipeline of enabling technologies, improving Utilities market, One WESCO initiative and solid execution.
Long-term earnings per share growth rate for Groupon, PetMed Express and SMART Global is projected at 7%, 10% and 15%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Here's Why You Should Bet on WESCO International (WCC) Stock
WESCO International, Inc. (WCC - Free Report) is currently one of the top-performing stocks in the technology sector and an increase in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
The company has performed extremely well over the last six months and has the potential to carry on the momentum in the near term.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend shows that the stock has had an impressive run on the bourses over the last six months. WESCO has returned 13.2% against the industry’s gain of 1.2%.
Solid Rank & VGM Score: WESCO has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Eight estimates for the current year have moved north over the past 60 days against no southward revisions, reflecting analysts’ confidence in the stock. Over the same period, the Zacks Consensus Estimate for the current year has increased 4.0%. Also, for fiscal 2018, the Zacks Consensus Estimate has inched up 4.0% to $4.33.
Positive Earnings Surprise History: WESCO has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 5.1%.
Strong Growth Prospects: The company’s Zacks Consensus Estimate for fiscal 2017 earnings of $3.87 reflects year-over-year growth of 1.90%. Moreover, earnings are expected to register 11.8% growth in fiscal 2018. The stock has long-term expected earnings per share growth rate of 10%.
Growth Drivers:
WESCO has a comprehensive portfolio of products and services and a sizable global footprint, which will help it to grow.
Recently, the company gave an impressive view for 2018. WESCO foresees favorable market conditions and growth in its end markets in 2018. It expects sales growth in the range of 3% to 6%, earnings per share in the range of $4.05-$4.55, and free cash flow generation of at least 90% of net income in 2018.
This indicates that the company is benefiting from strength across all end markets and geographic regions.
Moreover, its board of directors authorized a share buyback program, which replaces the similar program ending this year. WESCO will repurchase up to $300 million worth of shares over the next three years.
Repurchasing shares will enable WESCO in offsetting the dilution of EPS and making opportunistic purchases to support growth.
We believe that WESCO is in a great position to grow sustainably and profitably based on its strong pipeline of enabling technologies, improving Utilities market, One WESCO initiative and solid execution.
WESCO International, Inc. Price and Consensus
WESCO International, Inc. Price and Consensus | WESCO International, Inc. Quote
Other Stocks to Consider
A few better-ranked stocks in the broader technology sector are Groupon Inc. (GRPN - Free Report) , PetMed Express, Inc. (PETS - Free Report) and SMART Global Holdings, Inc. (SGH - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share growth rate for Groupon, PetMed Express and SMART Global is projected at 7%, 10% and 15%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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