Wesco International (WCC) AI Stock Analysis

Wesco International

(BMV:WCC)

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Positive Factors

Sustained Growth and BacklogBroad-based double-digit growth and record backlog indicate strong customer demand extending beyond a single market or quarter. Multi-year commitments and rising customer reliance can support revenue visibility, improve operating leverage, and reinforce Wesco’s competitive position over the next several quarters.

Negative Factors

Meaningful LeverageDebt remains elevated relative to equity for a distributor, leaving less financial flexibility if end-market demand weakens or working-capital requirements rise. Interest obligations and refinancing needs can constrain investment, acquisitions, and shareholder returns even as operating performance improves.

Wesco International (WCC) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 16.72B
Dividend Yield: 0.51%
Average Volume (3M): 1,929
Price to Earnings (P/E): 21.1
Beta (1Y): 0.04
Revenue Growth: 1.84%
EPS Growth: 13.40%
Country: Mexico
Employees: 21,000
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Distribution

Wesco International Business Overview & Revenue Model

Company Description

WESCO International, Inc. functions as a prominent global distributor, delivering an array of business-to-business logistical services and sophisticated supply chain management solutions across the United States, Canada, and internationally. The comp...

Wesco International Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 15, 2027

Earnings Call SentimentPositive

The call was strongly positive. Wesco reported record sales, profitability, backlog, cash flow generation and adjusted EPS, delivered broad-based growth across all three business units, significantly raised its 2026 outlook and described positive momentum entering the fourth quarter and 2027. The main challenges were flat broadband sales, competitive conditions in public power, seasonal and calendar factors affecting fourth-quarter leverage, and timing lags in data center project revenue realization.

Positive Updates

Utility and Grid Services Momentum

Utility grew high single digit, driven by strong IOU performance, improving public power trends and continued infrastructure investments. IOUs grew double digits for the fourth consecutive quarter, public power grew for the second consecutive quarter, and grid services grew double digits for the last four quarters. Grid services is expected to grow double digits in the fourth quarter, and management said its margins are attractive and margin accretive.

Negative Updates

Seasonal and Calendar Factors Affect Fourth-Quarter Outlook

Management's fourth-quarter outlook factors in the December dynamic, potential weather, holidays and one fewer business day, which results in a slight sequential revenue step-down and affects operating leverage.

Company Guidance

For 2026, Wesco expects CSS sales to grow about 20%, EES to grow low double digit, Wesco Data Center Solutions to grow more than 40%, and UBS to grow at a mid-single-digit rate; companywide guidance is organic sales growth of 13% to 14%, reported sales growth of 14% to 15%, full year sales of approximately $26.8 billion to $27 billion, adjusted EBITDA margin of approximately 7.2%, and adjusted EPS of $18 to $18.50 per share, while maintaining free cash flow guidance. For the fourth quarter, Wesco expects low to mid-teens reported sales growth and adjusted EBITDA margin expansion of approximately 50 basis points versus the prior year. For 2027, Wesco expects sales up mid- to high single digits, along with continued margin expansion, and digital transformation is expected to provide at least 100 basis points of EBITDA margin expansion.

Wesco International Risk Analysis

Wesco International disclosed 32 risk factors in its most recent earnings report. Wesco International reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Wesco International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

MX:WCC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAST	81Outperform	$59.56B	41.86	35.13%	1.93%	13.53%	15.58%
GWW	78Outperform	$64.02B	34.64	48.70%	0.70%	7.80%	-0.65%
AIT	74Outperform	$10.74B	25.73	22.68%	0.68%	8.45%	8.52%
MSM	69Neutral	$6.76B	30.33	15.87%	2.88%	6.37%	11.56%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DSGR	58Neutral	$1.62B	185.77	1.37%	―	6.45%	108.40%

* Industrials Sector Average

Performance Comparison

MX:WCC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:WCC	Wesco International	6720.00	3400.46	102.44%
AIT	Applied Industrial Technologies, Inc.	294.12	42.48	16.88%
FAST	Fastenal	51.91	11.74	29.22%
DSGR	Distribution Solutions Group, Inc.	34.98	7.97	29.51%
MSM	Msc Industrial Direct	121.02	39.32	48.12%
GWW	W.W. Grainger	1359.17	400.77	41.82%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Wesco International AI Stock Analysis