Wesco International (WCC) Dips More Than Broader Markets: What You Should Know
Wesco International (WCC) closed at $176.72 in the latest trading session, marking a -0.67% move from the prior day. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Coming into today, shares of the maker of electrical and industrial maintenance supplies and construction materials had gained 19.55% in the past month. In that same time, the Computer and Technology sector gained 4.63%, while the S&P 500 gained 4.16%.
Investors will be hoping for strength from Wesco International as it approaches its next earnings release. On that day, Wesco International is projected to report earnings of $4.46 per share, which would represent year-over-year growth of 6.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.95 billion, up 8.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.41 per share and revenue of $23.16 billion, which would represent changes of +6.03% and +8.13%, respectively, from the prior 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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.37% lower within the past month. Wesco International is currently a Zacks Rank #3 (Hold).
Investors should also note Wesco International's current valuation metrics, including its Forward P/E ratio of 10.22. For comparison, its industry has an average Forward P/E of 9.56, which means Wesco International is trading at a premium to the group.
It is also worth noting that WCC currently has a PEG ratio of 1.02. 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. The Electronics - Parts Distribution industry currently had an average PEG ratio of 0.86 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 109, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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WESCO International, Inc. (WCC) : Free Stock Analysis Report
