WESCO International Inc. (NYSE: WCC) stock jumped 0.60% on Friday to $130.50 against a previous-day closing price of $129.72. With 1.0 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.67 million shares. During the session, the Industrial Distribution company that operates in wider Industrials sector, reached to the highest price of $132.72 whereas the lowest price it dropped to was $125.36. The 52-week range on WCC shows that it touched its highest point at $144.43 and its lowest point at $99.00 during that stretch. It currently has a 1-year price target of $164.44. Beta for the stock currently stands at 2.15.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WCC was up-trending over the past week, with a rise of 6.24%, but this was up by 28.83% over a month. Three-month performance dropped to -1.55% while six-month performance rose 4.32%. The stock gained 23.29% in the past year, while it has lost -0.83% so far this year. A look at the trailing 12-month EPS for WCC yields 10.15 with Next year EPS estimates of 15.44. For the next quarter, that number is 3.93. This implies an EPS growth rate of 419.20% for this year and 4.26% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 30.10%.
Float and Shares Shorts:
At present, 50.60 million WCC shares are outstanding with a float of 37.07 million shares on hand for trading. On Jul 14, 2022, short shares totaled 1.44 million, which was 2.84% higher than short shares on Jun 14, 2022. In addition to Mr. John J. Engel as the firm’s Chairman, Pres & CEO, Mr. David S. Schulz serves as its Exec. VP & CFO.
Through their ownership of 94.65% of WCC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.34% of WCC, in contrast to 42.70% held by mutual funds. Shares owned by individuals account for 40.01%. As the largest shareholder in WCC with 8.82% of the stake, The Vanguard Group, Inc. holds 4,473,974 shares worth 4,473,974. A second-largest stockholder of WCC, BlackRock Fund Advisors, holds 2,732,264 shares, controlling over 5.39% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in WCC, holding 2,675,491 shares or 5.28% stake. With a 2.95% stake in WCC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,498,195 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.53% of WCC stock, is the second-largest Mutual Fund holder. It holds 1,281,631 shares valued at 137.26 million. Delaware Small Cap Value Fund holds 1.84% of the stake in WCC, owning 933,500 shares worth 99.98 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, WCC reported revenue of $4.93B and operating income of $284.03M. Over the past year, revenue came in at $19.11B while operating income stood at $952.65M. It generated $181.24M net income for the quarter, which came to $587.45M over the last twelve months. The EBITDA in the recently reported quarter was $329.88M and diluted EPS was $3.19. EBITDA for the full year was $1.15B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WCC since 11 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WCC analysts setting a high price target of $200.00 and a low target of $120.00, the average target price over the next 12 months is $160.00. Based on these targets, WCC could surge 53.26% to reach the target high and fall by -8.05% to reach the target low. Reaching the average price target will result in a growth of 22.61% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WCC will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $15.76 being high and $14.17 being low. For WCC, this leads to a yearly average estimate of $14.83. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. WESCO International Inc. surprised analysts by $1.40 when it reported $3.63 EPS against a consensus estimate of $2.23. The surprise factor in the prior quarter was $0.62. Based on analyst estimates, the high estimate for the next quarter is $4.37 and the low estimate is $3.61. The average estimate for the next quarter is thus $3.95.
Summary of Insider Activity:
Insiders traded WCC stock several times over the past three months with 6 Buys and 6 Sells. In these transactions, 86,701 shares were bought while 37,931 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 69 over the past year. The total number of shares bought during that period was 485,990 while 377,168 shares were sold.