Wesco International (WCC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Wesco International (WCC) closed at $128.03, marking a -1.86% move from the previous day. This change lagged the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.15%, while the tech-heavy Nasdaq added 0.27%.
Heading into today, shares of the maker of electrical and industrial maintenance supplies and construction materials had lost 5.48% over the past month, lagging the Computer and Technology sector's loss of 4.49% and the S&P 500's loss of 3.51% in that time.
Wesco International will be looking to display strength as it nears its next earnings release. On that day, Wesco International is projected to report earnings of $4.37 per share, which would represent year-over-year growth of 59.49%. Our most recent consensus estimate is calling for quarterly revenue of $5.55 billion, up 17.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.02 per share and revenue of $21.36 billion. These totals would mark changes of +60.52% and +17.22%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Wesco International. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Wesco International currently has a Zacks Rank of #2 (Buy).
Investors should also note Wesco International's current valuation metrics, including its Forward P/E ratio of 8.15. Its industry sports an average Forward P/E of 6.93, so we one might conclude that Wesco International is trading at a premium comparatively.
Also, we should mention that WCC has a PEG ratio of 0.81. 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 0.81 as of yesterday's close.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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