Latest news with #WESCOInternational
Yahoo
03-05-2025
- Business
- Yahoo
WESCO International First Quarter 2025 Earnings: Revenues Beat Expectations, EPS Lags
Revenue: US$5.34b (flat on 1Q 2024). Net income: US$104.0m (up 2.6% from 1Q 2024). Profit margin: 1.9% (in line with 1Q 2024). EPS: US$2.13 (up from US$1.99 in 1Q 2024). We've discovered 1 warning sign about WESCO International. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 7.5%. Looking ahead, revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Trade Distributors industry in the US. Performance of the American Trade Distributors industry. The company's share price is broadly unchanged from a week ago. If you are seeking undervalued stocks, our analysis of 6 valuation measures indicates WESCO International could be a good place to look. To access our thorough examination of analyst consensus click here and discover the expected future direction of the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
WESCO International, Inc. (WCC): Among Billionaire Seth Klarman's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where WESCO International, Inc. (NYSE:WCC) stands against other billionaire Seth Klarman's stock picks with huge upside potential. Seth Klarman is a legendary name in the hedge fund space. He entered Wall Street straight out of college, where he worked as an analyst for Mutual Shares Corporation. Klarman then proceeded to Baupost Group, where he has been ever since. Like most hedge fund managers, Klarman has a set of principles that guide his investment decisions. Most of these principles were captured in a 1991 book titled 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.' Klarman has established himself as the foremost proponent of value investing. In fact, this is the central theme of the 1991 book. He advocates for removing emotions from the investing process and seeing opportunities for what they are. He writes: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' READ ALSO: Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential and Billionaire Steve Cohen's 10 Large-Cap Stock Picks With Huge Upside Potential. In an interview with the Harvard Business School, Klarman insisted that he is unwilling to abandon value investing for other approaches. He maintained that 'value investing is intellectually elegant. You're basically buying bargains. It also appeals because all the studies demonstrate that it works. People who chase growth, who chase highfliers, inevitably lose because they paid a premium price. They lose to the people who have more patience and more discipline.' No wonder Baupost is one of the best-performing hedge funds in the world. The fund might have lagged behind giants like Third Point and Elliot in the 2015-2024 period but the ability to stay true to a decades-old strategy and still turn up gains is impressive. Last year, the fund culled approximately 20% of its investing team to try and steer the ship towards larger gains. To this, Klarman commented that 'with a somewhat smaller investment team, we have increased the level of energy, focus, accountability, and collaboration.' And these efforts are already bearing fruit. By December last year, the fund had gained 10%, the first double-digit return since 2021, according to Bloomberg. In other words, after 42 years in the game, Klarman is still able to turn his investment fortunes around. That is why it is prudent to see what stocks are in his portfolio, especially those with a huge upside potential. For this list, we combed through Baupost Group's Q4 2024 SEC 13F filings. We focused only on shares in companies and excluded interests in ETFs and options. From the result, we ranked the stocks in ascending order based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 29). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A team of professionals operating high and medium voltage project design. WESCO International, Inc. (NYSE:WCC) provides business-to-business distribution, logistics services, and supply chain solutions. The company distributes electrical, industrial, communications, and security maintenance, repair, and operations (MRO) products. It serves customers in industrial, utility, commercial, institutional, and government markets across more than 50 countries worldwide. WESCO International, Inc. (NYSE:WCC) returned to sales growth in Q4 2024. Net sales grew by 0.5% year-over-year to $5.5 billion, and organic sales increased by 2.4%. According to management, this growth came on the back of over 70% expansion in the company's global Data Center business and 20% growth in Broadband Solutions. The company generated $21.8 billion in net sales for the full year 2024. The corporation is making significant progress on its enterprise-wide digitalization efforts and business transformation. According to CEO John Engel, the company is more than halfway complete on its technology and capabilities build. This is expected to accelerate earnings growth through greater cross-selling, and expand margins through improved pricing and operating cost leverage. For 2025, management expects organic sales to grow 2.5% to 6.5%, operating margin to expand, and free cash flow between $600-800 million. On March 17, 2025, KeyBanc Capital Markets adjusted its price target for WESCO International, Inc. (NYSE:WCC) to $205 from $245 while maintaining an Overweight rating. Despite this reduction, analyst Ken Newman remains optimistic about WESCO's prospects, highlighting the company's improving capital structure and attractive valuation compared to peers. Overall, WCC ranks 7th on our list of billionaire Seth Klarman's stock picks with huge upside potential. While we acknowledge the potential of WCC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WCC but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
01-05-2025
- Business
- Globe and Mail
A Strong Contender in the B2B Distribution Sector
Explore the exciting world of WESCO International (NYSE: WCC) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of March 31, 2025. The video was published on May. 1, 2025. Should you invest $1,000 in Wesco International right now? Before you buy stock in Wesco International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wesco International wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $667,581!* Now, it's worth noting Stock Advisor 's total average return is882% — a market-crushing outperformance compared to161%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 28, 2025
Yahoo
23-04-2025
- Business
- Yahoo
Is WESCO International, Inc. (WCC) the Most Undervalued Growth Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where WESCO International, Inc. (NYSE:WCC) stands against other most undervalued growth stocks to buy now. Growth stocks are companies that grow their revenues and earnings at a faster rate than the overall market does. To identify the true growth stocks, we believe it is important to use a high enough benchmark over a long enough period. In this case, we define growth stocks as companies that managed to achieve a 5-year revenue compounded annual growth rate (CAGR) of at least 20%. It is obvious that all else equal, investors would prefer growth stocks, but the truth is that their high valuations and perceived expensiveness may often make them less attractive. It is not rare that high-growth companies end up underperforming simply because their initially high forward P/E ratio gradually contracts over time, partially or entirely offsetting the contribution of high earnings growth. So, the ultimate grail of investing consists in identifying undervalued growth stocks that would continue to grow rapidly and at the same time maintain or even expand their trading multiple. READ ALSO: 10 Best Undervalued Stocks to Buy According to Billionaires The growth factor has underperformed year-to-date as the entire US stock market has retracted by more than 15% since its early 2025 highs. The growth stocks performed worse than the market because capital flows to safety assets such as defensive value stocks and gold; the latter is up more than 30% this year, and its price returns actually exceed those of the entire US stock market over the last 10 years. Such situations are rare, and the truth is, by the time growth stocks become cheap enough, many retail investors are no longer willing to buy. This is exactly what's happening now, as the CNN Fear & Greed index shows a value of 20/100, showcasing an 'Extreme Fear' in the markets. This public fear is amplified by the tariff turmoil, especially as the broader market is showing a 'Death Cross' on the technical charts. Similar to Warren Buffett's teachings to be greedy when others are fearful, we maintain our optimistic stance for the long-term financial and economic health of the US and its stock market. The emergence of the 'Death Cross' signal on the technical chart turns out to be not as scary as perceived by the masses – empirical research shows that the broader market is actually expected to post a positive return of 1% over the 50 days, following the crossing of the 50 daily simple moving average below the 200 daily one, which already occurred on April 11. We don't claim that history will repeat itself this time; we want to illustrate that this widely discussed and feared event does not have much substance behind it. Moreover, the US economy remains resilient, all while President Trump removed his foot off the tariff gas pedal and is gradually granting exemptions to key consumer products like electronic devices. Employment data has been one of the most reliable indicators of recessions, and the latest US data shows that March employment did not show any sequential decline compared to February and is only marginally below the 2023-2024 level. Most of the decline compared to 2023-2024 comes from the public sector and only impacted a minority of workers, which is not enough to trigger a widespread economic slowdown. The US administration is hinting towards a possible agreement between Ukraine and Russia, which could lead to a ceasefire and a gradual return of US businesses to Russia. Such an event would induce a one-time positive shock to the market. Russia represents a giant 150 million consumer market that is significant for many US businesses. Second, the end of the conflict could very likely provide relief for energy prices around the globe, and especially in Europe. Lower energy prices are congruent with more consumer purchasing power and wider business profitability – both these factors should drive corporate earnings and valuations higher. With that being said, the key takeaway is that markets currently reflect close to peak pessimism, all while the economic situation in the US and around the world isn't materially worse than it was last year. Such a scenario is highly favorable for growth stocks – not only does the currently depressed market offer more undervalued candidates to invest in, but also hints towards a potential economic acceleration if Russia and Ukraine do reach a deal under the supervision of the US administration. To compile our list of most undervalued growth stocks, we used a stock screener to filter for companies that have at least 20% revenue CAGR in the last 5 years, and that trade below 15x forward P/E. Then we compared the list with our proprietary database of hedge funds' ownership and included in the article the top 10 stocks with the highest number of hedge funds that own the stock as of Q4 2024. The stocks are ranked in descending order of their forward P/E ratio. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A team of professionals operating high and medium voltage project design.WESCO International, Inc. (NYSE:WCC) is a distributor of electrical, industrial, and communications products, as well as maintenance, repair, and operations (MRO) supplies. The company's competitive advantage is based on its global presence and ability to serve a diverse clientele, including commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. WCC ranked 6th on our recent list of 10 Best Economic Recovery Stocks to Buy. WESCO International, Inc. (NYSE:WCC) returned to sales growth in Q4, driven by over 70% growth in global Data Center business and 20% growth in Broadband business, along with positive momentum in Electrical and Electronics Solutions. For the full year 2024, the company delivered record free cash flow exceeding $1 billion (154% of adjusted net income), while reducing net debt by $431 million. The company also made significant progress on enterprise-wide digitalization efforts and business transformation, with technology and capabilities built more than halfway complete. Looking ahead to 2025, WESCO International, Inc. (NYSE:WCC) expects organic sales growth of 2.5% to 6.5% with operating margin expansion across all three business units. The company plans to generate $600-800 million in free cash flow and increase its common stock dividend by 10% while continuing share buybacks. Management believes WCC is well-positioned for outsized growth driven by secular trends in AI-driven data centers, increased power generation, electrification, automation, and reshoring, with a strong pipeline of strategic acquisitions aligned with expanding service offerings. With strong guidance ahead and a single-digit forward P/E, WCC ranked third on our list of the most undervalued stocks to consider. Overall, WCC ranks 3rd on our list of most undervalued growth stocks to buy now. While we acknowledge the potential of WCC to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WCC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
Is WESCO International, Inc. (WCC) the Most Undervalued Growth Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where WESCO International, Inc. (NYSE:WCC) stands against other most undervalued growth stocks to buy now. Growth stocks are companies that grow their revenues and earnings at a faster rate than the overall market does. To identify the true growth stocks, we believe it is important to use a high enough benchmark over a long enough period. In this case, we define growth stocks as companies that managed to achieve a 5-year revenue compounded annual growth rate (CAGR) of at least 20%. It is obvious that all else equal, investors would prefer growth stocks, but the truth is that their high valuations and perceived expensiveness may often make them less attractive. It is not rare that high-growth companies end up underperforming simply because their initially high forward P/E ratio gradually contracts over time, partially or entirely offsetting the contribution of high earnings growth. So, the ultimate grail of investing consists in identifying undervalued growth stocks that would continue to grow rapidly and at the same time maintain or even expand their trading multiple. READ ALSO: 10 Best Undervalued Stocks to Buy According to Billionaires The growth factor has underperformed year-to-date as the entire US stock market has retracted by more than 15% since its early 2025 highs. The growth stocks performed worse than the market because capital flows to safety assets such as defensive value stocks and gold; the latter is up more than 30% this year, and its price returns actually exceed those of the entire US stock market over the last 10 years. Such situations are rare, and the truth is, by the time growth stocks become cheap enough, many retail investors are no longer willing to buy. This is exactly what's happening now, as the CNN Fear & Greed index shows a value of 20/100, showcasing an 'Extreme Fear' in the markets. This public fear is amplified by the tariff turmoil, especially as the broader market is showing a 'Death Cross' on the technical charts. Similar to Warren Buffett's teachings to be greedy when others are fearful, we maintain our optimistic stance for the long-term financial and economic health of the US and its stock market. The emergence of the 'Death Cross' signal on the technical chart turns out to be not as scary as perceived by the masses – empirical research shows that the broader market is actually expected to post a positive return of 1% over the 50 days, following the crossing of the 50 daily simple moving average below the 200 daily one, which already occurred on April 11. We don't claim that history will repeat itself this time; we want to illustrate that this widely discussed and feared event does not have much substance behind it. Moreover, the US economy remains resilient, all while President Trump removed his foot off the tariff gas pedal and is gradually granting exemptions to key consumer products like electronic devices. Employment data has been one of the most reliable indicators of recessions, and the latest US data shows that March employment did not show any sequential decline compared to February and is only marginally below the 2023-2024 level. Most of the decline compared to 2023-2024 comes from the public sector and only impacted a minority of workers, which is not enough to trigger a widespread economic slowdown. The US administration is hinting towards a possible agreement between Ukraine and Russia, which could lead to a ceasefire and a gradual return of US businesses to Russia. Such an event would induce a one-time positive shock to the market. Russia represents a giant 150 million consumer market that is significant for many US businesses. Second, the end of the conflict could very likely provide relief for energy prices around the globe, and especially in Europe. Lower energy prices are congruent with more consumer purchasing power and wider business profitability – both these factors should drive corporate earnings and valuations higher. With that being said, the key takeaway is that markets currently reflect close to peak pessimism, all while the economic situation in the US and around the world isn't materially worse than it was last year. Such a scenario is highly favorable for growth stocks – not only does the currently depressed market offer more undervalued candidates to invest in, but also hints towards a potential economic acceleration if Russia and Ukraine do reach a deal under the supervision of the US administration. To compile our list of most undervalued growth stocks, we used a stock screener to filter for companies that have at least 20% revenue CAGR in the last 5 years, and that trade below 15x forward P/E. Then we compared the list with our proprietary database of hedge funds' ownership and included in the article the top 10 stocks with the highest number of hedge funds that own the stock as of Q4 2024. The stocks are ranked in descending order of their forward P/E ratio. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A team of professionals operating high and medium voltage project design.WESCO International, Inc. (NYSE:WCC) is a distributor of electrical, industrial, and communications products, as well as maintenance, repair, and operations (MRO) supplies. The company's competitive advantage is based on its global presence and ability to serve a diverse clientele, including commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. WCC ranked 6th on our recent list of 10 Best Economic Recovery Stocks to Buy. WESCO International, Inc. (NYSE:WCC) returned to sales growth in Q4, driven by over 70% growth in global Data Center business and 20% growth in Broadband business, along with positive momentum in Electrical and Electronics Solutions. For the full year 2024, the company delivered record free cash flow exceeding $1 billion (154% of adjusted net income), while reducing net debt by $431 million. The company also made significant progress on enterprise-wide digitalization efforts and business transformation, with technology and capabilities built more than halfway complete. Looking ahead to 2025, WESCO International, Inc. (NYSE:WCC) expects organic sales growth of 2.5% to 6.5% with operating margin expansion across all three business units. The company plans to generate $600-800 million in free cash flow and increase its common stock dividend by 10% while continuing share buybacks. Management believes WCC is well-positioned for outsized growth driven by secular trends in AI-driven data centers, increased power generation, electrification, automation, and reshoring, with a strong pipeline of strategic acquisitions aligned with expanding service offerings. With strong guidance ahead and a single-digit forward P/E, WCC ranked third on our list of the most undervalued stocks to consider. Overall, WCC ranks 3rd on our list of most undervalued growth stocks to buy now. While we acknowledge the potential of WCC to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WCC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
