WCC:NYSEWESCO International, Inc. Analysis
Data as of 2026-05-10 - not real-time
$355.31
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
WESCO delivered a strong Q1 2026, posting revenue of $6.08 billion (+13.8% YoY) and adjusted EPS of $3.37, beating consensus by roughly 18%. The price is trading at $355.31, comfortably above the 20‑day SMA (327.09), 50‑day SMA (294.61) and 200‑day SMA (258.15), while the MACD histogram remains positive (2.57) and the RSI sits at 66, indicating bullish momentum with a slight overbought tilt. Support sits near $297.48 and resistance near $368.90, with the stock already testing the upper band of its 52‑week range. Volatility is elevated (≈52% 30‑day) and beta is high (≈1.8), suggesting price swings may be pronounced.
Valuation appears attractive: the trailing P/E of 25.3 is below the industry average of 29.9 and the forward P/E of 19 signals upside potential, while the dividend yield of 0.56% is backed by a modest 13% payout ratio, implying sustainability. However, the balance sheet is leveraged (debt‑to‑equity ≈128) despite solid cash generation, so investors should monitor leverage. Overall, the combination of earnings beat, bullish technicals, and relative valuation advantage supports a positive outlook.
Valuation appears attractive: the trailing P/E of 25.3 is below the industry average of 29.9 and the forward P/E of 19 signals upside potential, while the dividend yield of 0.56% is backed by a modest 13% payout ratio, implying sustainability. However, the balance sheet is leveraged (debt‑to‑equity ≈128) despite solid cash generation, so investors should monitor leverage. Overall, the combination of earnings beat, bullish technicals, and relative valuation advantage supports a positive outlook.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Technical bullishness (price above all SMAs, positive MACD)
- Q1 earnings beat and strong revenue growth
- Support level provides downside cushion
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervalued relative to industry P/E
- Sustainable dividend with low payout ratio
- Continued revenue expansion across all three segments
Long Term
> 3 yearsNeutral
Model confidence: 6/10
Key Factors
- High leverage (debt‑to‑equity >100) may limit flexibility
- Elevated volatility and beta could amplify market swings
- Long‑term growth prospects tied to industrial distribution demand
Key Metrics & Analysis
Financial Health
Revenue Growth13.80%
Profit Margin2.79%
P/E Ratio25.3
ROE13.40%
ROA5.13%
Debt/Equity127.71
P/B Ratio3.4
Op. Cash Flow$318.4M
Free Cash Flow$178.9M
Industry P/E29.9
Technical Analysis
TrendBullish
RSI66.5
Support$297.48
Resistance$368.90
MA 20$327.09
MA 50$294.61
MA 200$258.15
MACDBullish
VolumeIncreasing
Fear & Greed Index90.73
Valuation
Target Price$369.09
Upside/Downside3.88%
GradeUndervalued
TypeGrowth
Dividend Yield0.56%
Risk Assessment
Beta1.81
Volatility52.46%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.