Trade-Ideas LLC identified

WESCO International

(

WCC

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified WESCO International as such a stock due to the following factors:

  • WCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.9 million.
  • WCC has traded 907,307 shares today.
  • WCC is down 3.9% today.
  • WCC was up 7.1% yesterday.

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More details on WCC:

WESCO International, Inc. distributes electrical, industrial, and communication maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials in North America and internationally. WCC has a PE ratio of 13. Currently there are 2 analysts that rate WESCO International a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for WESCO International has been 728,600 shares per day over the past 30 days. WESCO International has a market cap of $2.3 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.83 and a short float of 15.2% with 4.41 days to cover. Shares are up 32.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates WESCO International as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
  • WCC, with its decline in revenue, slightly underperformed the industry average of 0.9%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for WESCO INTL INC is rather low; currently it is at 20.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.03% trails that of the industry average.
  • Net operating cash flow has decreased to $78.57 million or 12.75% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, WESCO INTL INC has marginally lower results.

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