Wesco International Inc. (WCC): Today's Featured Wholesale Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Wesco International ( WCC) pushed the Wholesale industry higher today making it today's featured wholesale winner. The industry as a whole closed the day up 0.3%. By the end of trading, Wesco International rose 84 cents (1.4%) to $60.99 on light volume. Throughout the day, 461,635 shares of Wesco International exchanged hands as compared to its average daily volume of 739,300 shares. The stock ranged in a price between $59.97-$61.60 after having opened the day at $59.97 as compared to the previous trading day's close of $60.15. Other companies within the Wholesale industry that increased today were: Navarre Corporation ( NAVR), up 9.4%, SED International Holdings ( SED), up 6.4%, Armco Metals Holdings ( CNAM), up 5.2%, and TMS International ( TMS), up 4.9%.

WESCO International, Inc., a Fortune 500 company, engages in the distribution of electrical, industrial, and communications maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials. Wesco International has a market cap of $2.65 billion and is part of the services sector. The company has a P/E ratio of 13.5, below the average wholesale industry P/E ratio of 13.8 and below the S&P 500 P/E ratio of 17.7. Shares are up 11.3% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Wesco International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Wesco International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, SinoHub ( SIHI), down 13%, China Auto Logistics ( CALI), down 8%, Shengkai Innovations ( VALV), down 6.7%, and InfoSonics Corporation ( IFON), down 3.5%, were all laggards within the wholesale industry with McKesson ( MCK) being today's wholesale industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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