Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $46.9 million.
- WCC has traded 78,916 shares today.
- WCC traded in a range 269.1% of the normal price range with a price range of $4.85.
- WCC traded below its daily resistance level (quality: 96 days, meaning that the stock is crossing a resistance level set by the last 96 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on WCC:
WESCO International, Inc. engages in the distribution of electrical, industrial, and communications maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials. It also provides supply chain management and logistics services. WCC has a PE ratio of 18.2. Currently there are 9 analysts that rate Wesco International a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Wesco International has been 417,400 shares per day over the past 30 days. Wesco International has a market cap of $3.8 billion and is part of the services sector and wholesale industry. The stock has a beta of 2.31 and a short float of 12.4% with 8.13 days to cover. Shares are down 5.7% year-to-date as of the close of trading on Tuesday.
rates Wesco International as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- WCC's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 16.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 25.87% which was in line with the performance of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WCC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WESCO INTL INC has improved earnings per share by 5.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WESCO INTL INC reported lower earnings of $3.95 versus $3.97 in the prior year. This year, the market expects an improvement in earnings ($5.12 versus $3.95).
- WCC's debt-to-equity ratio of 0.91 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.29 is sturdy.
- You can view the full Wesco International Ratings Report.