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Wesco International (WCC) Surges 9.6%: Is This an Indication of Further Gains?

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Wesco International (WCC - Free Report) shares soared 9.6% in the last trading session to close at $113.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.1% loss over the past four weeks.

WESCO International extended its rally, driven by strong momentum across construction, industrial, utility and broadband businesses. Further, well-performing security solutions & network infrastructure businesses are contributing well to the top-line growth. Additionally, WESCO’s solid execution and cost-reduction activities along with expanding OEM customer base, remain noteworthy. All these factors are instilling investor optimism in the stock.

This maker of electrical and industrial maintenance supplies and construction materials is expected to post quarterly earnings of $3.75 per share in its upcoming report, which represents a year-over-year change of +42.1%. Revenues are expected to be $5.29 billion, up 15.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Wesco International, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on WCC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Wesco International is a member of the Zacks Electronics - Parts Distribution industry. One other stock in the same industry, Arrow Electronics (ARW - Free Report) , finished the last trading session 3.5% higher at $111.06. ARW has returned -10% over the past month.

For Arrow Electronics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $5.57. This represents a change of +66.8% from what the company reported a year ago. Arrow Electronics currently has a Zacks Rank of #1 (Strong Buy).


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