Wesco International Rating Lowered to Hold by US Bancorp

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Wesco International ($NYSE:WCC) is a leading provider of electrical, industrial, and communications products and services. The company operates in North America, Europe, Asia, and Australia. The company’s stock has been under pressure recently after US Bancorp DE lowered its rating from buy to hold. The company also issued guidance for first quarter revenue that was below analysts’ estimates.

Despite the challenges that the company is facing, Wesco International remains a leader in its industry. The company has a strong history of operational excellence and is well-positioned to continue growing its business.

Market Price

Wesco International has been given a Hold rating by US Bancorp. The news around the company has been mostly positive, but the analyst believes that there is downside potential. On Tuesday, Wesco International stock opened at $140.0 and closed at $140.3, up by 1.8% from prior closing price of 137.8.

VI Analysis

The company operates through three segments: Distribution, Contracting, and E-Commerce. The Distribution segment offers a range of electrical, industrial, and communications products and related services to utility, commercial, industrial, and construction customers, as well as to governmental and institutional customers. The Contracting segment provides electrical and communications contracting services to utility, commercial, industrial, and governmental customers. The E-Commerce segment provides an online platform that offers a range of electrical, industrial, and communications products and related services to customers.

VI Peers

The Company’s primary competitors are Fastenal Co, MSC Industrial Direct Co Inc, and Addtech AB.

– Fastenal Co ($NASDAQ:FAST)

The company’s market cap is $27.97B as of 2022 and its ROE is 28.04%. The company is engaged in the distribution of industrial and construction supplies.

– MSC Industrial Direct Co Inc ($NYSE:MSM)

MSC Industrial Direct Co, Inc. engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services. It operates through the following segments: Metalworking Solutions Group, MRO Solutions Group, and Fluid Power & Automation Solutions Group. The Metalworking Solutions Group segment offers cutting tools, measuring instruments, tooling components, abrasives, and machine tools. The MRO Solutions Group segment comprises of products used to maintain, repair, and operate facilities and equipment. The Fluid Power & Automation Solutions Group segment provides fluid power components and systems, and automation and control products. The company was founded by Martin Schwartz in 1941 and is headquartered in Melville, NY.

MSC Industrial Direct Co Inc has a market cap of 4.71B as of 2022 and a Return on Equity of 22.14%. The company engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services. It operates through the following segments: Metalworking Solutions Group, MRO Solutions Group, and Fluid Power & Automation Solutions Group. The Metalworking Solutions Group segment offers cutting tools, measuring instruments, tooling components, abrasives, and machine tools. The MRO Solutions Group segment comprises of products used to maintain, repair, and operate facilities and equipment. The Fluid Power & Automation Solutions Group segment provides fluid power components and systems, and automation and control products.

– Addtech AB ($LTS:0QI7)

Addtech AB is a Swedish company that provides technology solutions for industrial customers. The company has a market cap of 36 billion as of 2022 and a return on equity of 28.17%. Addtech’s solutions include products and services for automation, motion control, and fluid power. The company operates in four segments: Automation, Motion, Fluid Power, and Industrial Supplies. Addtech employs approximately 3,700 people and has sales offices in Europe, North America, and Asia.

Summary

Wesco International is a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services. The company has a strong balance sheet and generates significant cash flow, which it uses to reinvest in the business and pay dividends. Wesco International is a well-run company with a proven track record of success. Investors looking for a stable, dividend-paying company with a history of growth and a strong balance sheet would do well to consider Wesco International.