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Wesco International (WCC) Stock Sinks As Market Gains: What You Should Know

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Wesco International (WCC - Free Report) closed at $125.45 in the latest trading session, marking a -0.18% move from the prior day. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the maker of electrical and industrial maintenance supplies and construction materials had lost 5.4% over the past month, outpacing the Computer and Technology sector's loss of 11.12% and lagging the S&P 500's loss of 5.26% in that time.

Wall Street will be looking for positivity from Wesco International as it approaches its next earnings report date. This is expected to be May 5, 2022. In that report, analysts expect Wesco International to post earnings of $2.20 per share. This would mark year-over-year growth of 53.85%. Our most recent consensus estimate is calling for quarterly revenue of $4.62 billion, up 14.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.54 per share and revenue of $19.48 billion, which would represent changes of +15.63% and +6.91%, respectively, from the prior year.

Any recent changes to analyst estimates for Wesco International should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Wesco International is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Wesco International is currently trading at a Forward P/E ratio of 10.89. For comparison, its industry has an average Forward P/E of 6.91, which means Wesco International is trading at a premium to the group.

Investors should also note that WCC has a PEG ratio of 1.09 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Parts Distribution industry currently had an average PEG ratio of 1.09 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 242, putting it in the bottom 5% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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