NEW YORK (TheStreet) -- Shares of Wesco International (WCC) - Get WESCO International, Inc. Report are up 2.05% to $84.07 after analysts at JP Morgan (JPM) - Get JPMorgan Chase & Co. (JPM) Report raised its rating on the company to "overweight" from "neutral" on Thursday.
The target price on the electronics distribution and services company was increased to $103 from $94.
TheStreet Ratings team rates WESCO INTL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WESCO INTL INC (WCC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WCC's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 5.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.83, 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 1.26, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Trading Companies & Distributors industry average. The net income increased by 5.4% when compared to the same quarter one year prior, going from $65.29 million to $68.80 million.
- WESCO INTL INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WESCO INTL INC increased its bottom line by earning $5.26 versus $3.95 in the prior year. This year, the market expects an improvement in earnings ($5.28 versus $5.26).
- You can view the full analysis from the report here: WCC Ratings Report
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