Here's Why Wesco International (WCC) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Wesco International (WCC)
WESCO International, Inc. based in Pittsburgh, PA is one of the largest players in the highly fragmented distribution market for electrical construction products in North America.
WCC is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 7.5X for the current fiscal year compared to the Electronics - Parts Distribution industry's P/E of 6.7X. Additionally, WCC has a PEG Ratio of 0.8 and a Price/Cash Flow ratio of 8.3X. Value investors should also note WCC's Price/Sales ratio of 0.3X.
Many value investors pay close attention to a company's earnings as well. For WCC, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $16.11 per share for 2022. Per share WCC boasts an average earnings surprise of 25.1%.
WCC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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