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

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 lower today making it today's featured Wholesale laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Wesco International fell $1.09 (-1.8%) to $60.94 on average volume. Throughout the day, 579,603 shares of Wesco International exchanged hands as compared to its average daily volume of 595,400 shares. The stock ranged in price between $60.94-$62.38 after having opened the day at $62.32 as compared to the previous trading day's close of $62.03. Other companies within the Wholesale industry that declined today were: Longwei Petroleum Investment Holding Limite ( LPH), down 10.4%, Armco Metals Holdings ( CNAM), down 5.8%, Aegean Marine Petroleum Network ( ANW), down 4.5%, and Addvantage Technologies Group ( AEY), down 4%.
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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 $2.73 billion and is part of the services sector. The company has a P/E ratio of 14.2, equal to the average wholesale industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 17% year to date as of the close of trading on Thursday. Currently there are 15 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 positive front, Chindex International ( CHDX), up 7.2%, Bluelinx Holdings ( BXC), up 5.9%, SED International Holdings ( SED), up 4.9%, and Shengkai Innovations ( VALV), up 4%, were all gainers within the wholesale industry with Airgas ( ARG) being today's featured wholesale industry leader.

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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