WESCO International
WCC
$335.02
+1.86%
Wesco International Inc. is a leading distributor of electrical, networking, security, and utility equipment, serving construction, industrial, and utility end markets globally. The company traces its roots to the late 1800s and has built a broad product portfolio through organic growth and acquisitions, positioning itself as a one-stop-shop for mission-critical infrastructure components. Investor attention is currently focused on Wesco's ability to sustain double-digit revenue growth amid a cyclical industrial backdrop, with the stock rallying over 66% in the past year as the market prices in margin expansion and robust demand from data center and utility projects.…
WCC
WESCO International
$335.02
WCC 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on WESCO International's 12-month outlook, with a consensus price target around $435.53 and implied upside of +30.0% versus the current price.
Average Target
$435.53
2 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
2
covering this stock
Price Range
$268 - $436
Analyst target range
Only 2 analysts cover Wesco, which is limited coverage for a mid-cap stock. The consensus recommendation is bullish, with all analysts rating it Overweight or Outperform. The average EPS estimate is $25.12, with a low of $24.83 and high of $25.41, implying a forward P/E of 13.3x based on the current price. The average revenue estimate is $29.18 billion, suggesting 6.5% growth from the trailing twelve months. The implied upside to the average target is not directly available, but based on the forward P/E of 13.3x vs. trailing 18.4x, the market is pricing in significant earnings growth.
The target range is narrow: EPS estimates range from $24.83 to $25.41, indicating high conviction among the few analysts. The high target assumes continued margin expansion and robust demand from data centers and utilities, while the low target likely factors in cyclical headwinds or slower growth. The limited coverage means the stock may be less efficiently priced, and investors should conduct their own due diligence. Recent ratings from Barclays, RBC, KeyBanc, and JP Morgan have all been Overweight/Outperform, with no downgrades, signaling sustained positive sentiment.
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WCC Technical Analysis
WCC is in a strong uptrend, with the stock up 66.5% over the past year, significantly outperforming the S&P 500's 20.6% gain. The current price of $335.02 sits at 88.6% of its 52-week range ($195.43–$377.90), indicating the stock is trading near the upper end of its range, reflecting bullish momentum but also potential overextension. The 1-year price change of +66.5% and the 52-week high of $377.90 suggest the stock has been in a sustained uptrend, though the recent pullback from the high warrants caution.
Short-term momentum has decelerated: the 1-month price change is +24.8%, while the 3-month change is +10.4%, showing a loss of acceleration from the longer-term trend. The stock's beta of 1.545 indicates it is 54.5% more volatile than the market, amplifying both upside and downside moves. The recent price action from the June high of $374.52 to the July low of $307.21 represents a correction of roughly 18%, but the stock has bounced back to $335.02, suggesting buyers are stepping in at lower levels.
Key support is the 52-week low of $195.43, though more immediate support lies near the $307 area (July low). Resistance is at the 52-week high of $377.90; a breakout above this level would signal a resumption of the uptrend and could target new highs. Conversely, a breakdown below $307 would suggest further downside. With a beta of 1.545, the stock is significantly more volatile than the market, meaning it could experience sharper moves in either direction, which is important for risk management.
Beta
1.54
1.54x market volatility
Max Drawdown
-20.7%
Largest decline past year
52-Week Range
$195-$378
Price range past year
Annual Return
+66.5%
Cumulative gain past year
| Period | WCC Return | S&P 500 |
|---|---|---|
| 1m | +0.2% | +1.8% |
| 3m | +10.4% | +10.0% |
| 6m | +24.4% | +8.8% |
| 1y | +66.5% | +21.1% |
| ytd | +32.9% | +10.7% |
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WCC Fundamental Analysis
Wesco's revenue trajectory is solidly growing, with Q4 2025 revenue of $6.069 billion, up 10.3% year-over-year. The trailing twelve-month revenue trend shows sequential growth from $5.350 billion in Q1 2025 to $6.187 billion in Q3 2025, indicating accelerating momentum. Revenue segments are diversified: CSS ($6.84B), EES ($6.70B), and UBS ($4.08B), with all segments contributing to growth. The 10.3% YoY growth rate in Q4 2025 is a deceleration from the 13.8% growth seen in Q3 2025, but still robust, driven by data center, utility, and infrastructure demand.
The company is profitable, with Q4 2025 net income of $159.9 million and a net margin of 2.6%. Gross margin was 20.3% in Q4 2025, relatively stable compared to 21.2% in Q4 2024, indicating pricing power is holding. Operating margin improved to 5.3% in Q4 2025 from 5.5% in Q4 2024, but the trend over the past four quarters shows operating margins ranging from 4.5% to 5.6%, suggesting stability. The net margin of 2.6% is typical for distribution, but the company is generating solid absolute profits.
Balance sheet health is moderate: debt-to-equity is 1.49x, and the current ratio is 2.20x, indicating adequate liquidity. Free cash flow (FCF) was $27.5 million in Q4 2025, but TTM FCF is only $25.2 million, which is low relative to net income of $159.9 million, suggesting working capital drag. ROE is 12.7%, decent for the sector, but the low FCF yield (0.2% based on market cap) indicates limited cash generation relative to valuation. The company relies on debt financing, as evidenced by the debt-to-equity ratio above 1.0, but interest coverage of 3.0x is adequate.
Quarterly Revenue
$6.1B
2025-12
Revenue YoY Growth
+10.34%
YoY Comparison
Gross Margin
20.34%
Latest Quarter
Free Cash Flow
$25200000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is WCC Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 18.4x, while the forward P/E is 17.8x, implying the market expects modest earnings growth. The gap between trailing and forward P/E is narrow, suggesting limited earnings acceleration is priced in. The P/E of 18.4x is reasonable for a cyclical industrial distributor, but the PEG ratio is 0.0 (likely due to negative growth assumptions), which warrants caution.
Compared to the industrial distribution industry, Wesco's P/E of 18.4x is at a premium to the sector average of roughly 15x (based on industry data), representing a 23% premium. This premium may be justified by Wesco's superior revenue growth (10.3% YoY vs. industry average of ~5%) and its market-leading position in electrical distribution. However, the net margin of 2.6% is below the industry average of ~4%, which tempers the premium justification.
Historically, Wesco's trailing P/E has ranged from 6x to 19x over the past five years. The current 18.4x is near the top of that range, suggesting the stock is priced for optimistic expectations. The P/B ratio of 2.4x is also elevated relative to the historical average of ~1.5x, indicating that the market is pricing in continued strong returns on equity. If growth disappoints, the stock could de-rate significantly.
PE
18.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 6x~19x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.8x
Enterprise Value Multiple
