WESCO International (WCC) Lifted to “Buy” at Zacks Investment Research

WESCO International (NYSE:WCC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Saturday. The firm currently has a $69.00 target price on the technology company’s stock. Zacks Investment Research‘s price target suggests a potential upside of 9.52% from the company’s previous close.

According to Zacks, “WESCO reported strong fourth-quarter 2017 results. Both earnings and revenues increased on a year-over-year basis. Top-line growth was driven by strong end-market results, product and services portfolio strength and robust performance in certain geographies. Moreover, focus on growth and pricing strategies accelerated the sales number. The company continues with its focus on delivering above-average sales growth, profitability improvement, strong cash flow generation and increasing shareholder value. It continues to invest progressively in the One WESCO initiative aimed at creating extensive supply chain management solutions. However, supplier concentration, a significant debt load and limited liquidity remain concerns. In the past year, the stock has underperformed the industry it belongs to.”

A number of other brokerages have also commented on WCC. Wells Fargo & Co boosted their price target on WESCO International from $67.00 to $75.00 and gave the company an “outperform” rating in a report on Friday, October 27th. ValuEngine downgraded WESCO International from a “buy” rating to a “hold” rating in a research report on Friday, February 2nd. Standpoint Research downgraded WESCO International from a “buy” rating to a “hold” rating in a research report on Wednesday, October 18th. They noted that the move was a valuation call. Wolfe Research downgraded WESCO International from an “outperform” rating to a “market perform” rating in a research report on Friday, October 27th. Finally, Credit Suisse Group set a $70.00 target price on WESCO International and gave the company an “outperform” rating in a research report on Tuesday, October 31st. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $68.77.

Shares of WESCO International (NYSE:WCC) traded up $1.15 during trading on Friday, hitting $63.00. The stock had a trading volume of 628,246 shares, compared to its average volume of 439,873. The company has a market capitalization of $2,907.07, a price-to-earnings ratio of 18.69, a price-to-earnings-growth ratio of 1.32 and a beta of 1.86. WESCO International has a 12 month low of $48.95 and a 12 month high of $73.30. The company has a current ratio of 2.31, a quick ratio of 1.42 and a debt-to-equity ratio of 0.65.

WESCO International (NYSE:WCC) last issued its quarterly earnings results on Thursday, February 1st. The technology company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.98 by $0.05. The company had revenue of $2 billion for the quarter, compared to analyst estimates of $1.93 billion. WESCO International had a return on equity of 9.10% and a net margin of 2.13%. The company’s quarterly revenue was up 11.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.96 earnings per share. analysts expect that WESCO International will post 4.67 earnings per share for the current fiscal year.

WESCO International announced that its board has initiated a share repurchase plan on Wednesday, December 13th that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the technology company to buy shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

In related news, Director James Louis Singleton sold 3,288 shares of WESCO International stock in a transaction dated Wednesday, December 13th. The stock was sold at an average price of $64.25, for a total value of $211,254.00. Following the sale, the director now owns 19,477 shares of the company’s stock, valued at $1,251,397.25. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.90% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. SG Americas Securities LLC acquired a new position in WESCO International during the fourth quarter worth approximately $140,000. DUPONT CAPITAL MANAGEMENT Corp acquired a new position in WESCO International during the first quarter worth approximately $146,000. Comerica Bank acquired a new position in WESCO International during the fourth quarter worth approximately $210,000. Capital Fund Management S.A. acquired a new position in WESCO International during the fourth quarter worth approximately $218,000. Finally, Tyers Asset Management LLC acquired a new position in WESCO International during the fourth quarter worth approximately $215,000. 98.70% of the stock is currently owned by hedge funds and other institutional investors.

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About WESCO International

WESCO International, Inc is a distributor of products and provider of supply chain management and logistics services used in industrial, construction, utility and commercial, institutional and government (CIG) markets. The Company is a provider of electrical, industrial and communications maintenance, repair and operating (MRO) and original equipment manufacturers (OEM) products, construction materials, and supply chain management and logistics services.

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