WESCO International, Inc. research snapshot
WCC AI stock analysis currently reads WESCO International as a scaled business-to-business distributor of electrical, communications, security, utility, and broadband products, logistics, and supply-chain solutions. At the August 2, 2026 cutoff, based on the July 31, 2026 close, WCC traded near $343.49 with a verified market cap of $16.74 billion. Second-quarter 2026 net sales rose 13.0% to $6.665 billion on 12.6% organic growth, data-center sales reached $1.5 billion, and total backlog hit a record, up about 60% year over year, prompting WESCO to raise its full-year 2026 outlook. The momentum is balanced by a 21.8% gross margin, a 7.3% adjusted EBITDA margin, $5.18 billion of net debt, and trailing free cash flow that remains thin relative to earnings. This WCC AI stock analysis is informational only and is not investment advice.
Current price
$343.49 close on July 31, 2026
Market cap
$16.74 billion reported and verified
AI score
72 / 100
Rating
Strong second-quarter momentum with record backlog and raised guidance, balanced by thin margins, weak free cash flow, and a valuation that leaves little room for error
Trend status
Constructive above the 200-day moving average, with price holding near the 50-day average after a 61% run over the past 52 weeks
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | WESCO distributes electrical and electronic products, communications and security solutions, and utility and broadband equipment while adding logistics, power, cooling, and supply-chain services. The model earns its place on availability, scale, and execution rather than pricing power. | High |
| Moat | Scale, supplier relationships, local inventory, technical sales capability, customer integration, and logistics infrastructure create useful switching friction. The moat is operational rather than absolute pricing power or a network effect. | Medium |
| Management | Chairman, President, and CEO John Engel has driven the One Wesco cross-selling strategy, data-center and grid expansion, lower-cost debt refinancing, dividend growth, and share repurchases. Execution has been strong, with the 2026 outlook raised after both Q1 and Q2. | Medium-high |
| Financial trend | Q2 2026 net sales rose 13.0% to $6.665 billion, adjusted EBITDA rose 23.6% to $487.2 million, adjusted diluted EPS rose 34.8% to $4.57, and record backlog was up about 60%. H1 2026 free cash flow of $245.7 million was up 156% year over year. | High |
| Valuation | At $343.49, valuation math shows about 23.75x trailing EPS, 18.98x forward EPS, 3.21x book value, about 108x trailing free cash flow per share, and a 0.58% dividend yield. The free cash flow multiple is high because trailing FCF is depressed by working capital. | High |
| Technical trend | WCC is above the 200-day moving average of $295.63 and holding near the 50-day moving average of $343.62. RSI of 54.12 is neutral after a strong 52-week advance. | Medium |
| Risk level | Key risks are data-center order digestion, utility and industrial spending cycles, thin gross margin, working-capital-driven cash swings, interest expense, net debt of $5.18 billion, hyperscaler concentration, and multiple compression from the current 24x trailing earnings. | Medium-high |
| AI confidence | Descriptive confidence is high because reported and third-party data are plentiful and consistent. Forecast confidence is medium because share-price results depend on data-center durability, cash conversion, leverage, and the earnings multiple. | High data confidence |
| Investment certainty | WCC has strong near-term momentum and raised guidance, but a durable investment case requires proof that record sales and backlog convert into sustained free cash flow and margin at a valuation that already prices in continued growth. | Medium |
WCC AI stock forecast
The WCC AI stock forecast uses scenario math around the $343.49 July 31, 2026 close, trailing EPS of $14.46, and a three-year earnings multiple framework. The audited model produces a bearish point near $218, a base point near $366, and a bullish point near $484 before dividends.
$460 to $500
More likely if data-center demand stays strong, backlog converts on schedule, cross-selling and Grid Services scale lift margins, free cash flow normalizes, net debt falls, and EPS compounds near 15% while investors keep a low-to-mid-20s earnings multiple.
$345 to $385
More likely if sales and EPS compound near 10%, working capital absorbs less cash, net debt declines, and the market values WCC near 19x forward earnings.
$200 to $235
More likely if data-center orders normalize, utility and industrial demand weaken, gross margins compress, cash conversion disappoints, leverage stays high, and investors value WCC near 13x earnings.
WCC AI technical analysis
WCC AI technical analysis is mixed-to-constructive as of the August 2, 2026 cutoff, based on the July 31, 2026 close of $343.49. Price was above the 200-day moving average of $295.63 and near the 50-day moving average of $343.62, with RSI of 54.12 neutral. These levels are market-data references, not predictions.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $343.49 | Close on July 31, 2026 from StockAnalysis. |
| Immediate support | $335 to $342 | Area around the July 31 intraday low of $340.94 and just below the 50-day moving average of $343.62. A break can indicate that the post-run pullback is taking control. |
| Deeper support | $315 to $320 | Rounded level below the recent congestion zone that would become a reference if the pullback extends on volume. |
| Major support | $295 to $300 | Area around the 200-day moving average of $295.63, a key longer-term trend test. |
| Near resistance | $357 to $362 | Area above the July 31 intraday high of $357.65. A sustained reclaim would improve short-term trend evidence. |
| Higher resistance | $372 to $378 | Area toward the 52-week high of $377.90, the upper bound of the current range. |
| Moving averages | 50-day $343.62, 200-day $295.63 | StockAnalysis moving-average data as of August 2, 2026. |
| Momentum | RSI 54.12 | Neutral RSI indicates neither an oversold nor overbought condition on the source reading. |
| Volume | 20-day average 803,146 shares | Volume confirmation matters if price attempts to reclaim resistance or breaks support. |
| Volatility | 5-year beta 1.54 | The reported beta indicates higher historical volatility than the market average and does not cap potential loss. |
| Invalidation | Sustained close below $295 | A durable break below the 200-day area would weaken the longer-term technical structure and call for a review of the earnings and valuation thesis. |
WCC AI trading strategy
The WCC AI trading strategy below is a rules-based research framework, not personalized advice. It connects price action to data-center demand, backlog conversion, segment mix, gross margin, adjusted EBITDA, working capital, free cash flow, net debt, and interest expense.
Look for WCC to hold the $335 to $342 area and then reclaim $357 to $362 with volume, while quarterly results confirm organic growth, backlog conversion, margin resilience, and free-cash-flow progress.
A failed reclaim or a close below support lowers setup confidence, especially if it coincides with weaker data-center orders, lower gross margin, rising receivables, higher interest expense, or higher leverage.
If WCC approaches $315 to $320 or the $295 to $300 area while fundamentals remain intact, compare the lower price with updated EPS, working-capital needs, net debt, interest expense, and the pace of utility and grid recovery.
Do not treat every decline as attractive if the decline reflects an order slowdown, inventory build, cash-flow shortfall, debt pressure, or a structural reset in distribution margins.
Track organic sales by EES, CSS, and UBS, data-center sales and backlog, gross margin by segment, adjusted EBITDA margin, operating cash flow, free cash flow, inventory, receivables, net debt, interest expense, repurchases, and dividends.
Position sizing should reflect that high revenue growth in a low-margin distributor can still produce weak shareholder returns if cash conversion and leverage do not improve.
Investment research summary
Customers pay WESCO to source, stage, configure, deliver, and manage critical electrical, communications, security, utility, and broadband products, plus data-center power and cooling services. The model earns its place when availability, technical support, and supply-chain execution reduce customer downtime and complexity.
WESCO benefits from scale purchasing, supplier relationships, branch and distribution infrastructure, inventory availability, logistics capability, technical sales, embedded processes, and cross-selling across a broad portfolio. The advantage is operational and scale-based rather than absolute pricing power.
The thesis fails if data-center orders normalize, backlog conversion stalls, utility and industrial spending weaken, gross margins compress, inventory and receivables consume cash, net debt stays high, interest cost rises, hyperscaler concentration grows, suppliers disintermediate distribution, or a cyclical downturn compresses the earnings multiple.
John Engel and the team have driven the One Wesco cross-selling strategy, data-center and Grid Services expansion, the Newark Engineering cooling-services acquisition, lower-cost debt refinancing, dividend growth, and share repurchases. The central capital-allocation question is whether cash is best used for debt reduction, buybacks, dividends, or growth investment.
AI data-center construction, grid investment, electrification, broadband buildout, and supply-chain outsourcing support demand. These trends do not remove exposure to enterprise capex cycles, project timing, product mix, hyperscaler concentration, and distributor competition.
The current price of about 24x trailing earnings assumes continued earnings growth and better cash conversion. The base scenario only modestly exceeds the current price if EPS compounds near 10% and the market settles near 19x earnings, so the margin of safety depends on execution rather than a low starting multiple.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Current price reference | $343.49 close on July 31, 2026 | StockAnalysis statistics | July 31, 2026 |
| Market cap verification | $16.74 billion calculated versus $16.74 billion reported | Pineify financial_rigor.py and StockAnalysis | July 31, 2026 |
| Shares outstanding | 48.73 million shares | StockAnalysis and WESCO filings | July 31, 2026 |
| Q2 2026 net sales | $6.665 billion, up 13.0% reported and 12.6% organic | WESCO Q2 2026 earnings release | July 30, 2026 |
| Q2 2026 data center sales and backlog | $1.5 billion data center sales, up ~45% YOY; record backlog up ~60% YOY | WESCO Q2 2026 earnings release | July 30, 2026 |
| Q2 2026 adjusted EBITDA and adjusted EPS | $487.2 million adjusted EBITDA, up 23.6% YOY; adjusted diluted EPS $4.57, up 34.8% YOY | WESCO Q2 2026 earnings release | July 30, 2026 |
| Q2 2026 gross margin and adjusted EBITDA margin | 21.8% gross margin and 7.3% adjusted EBITDA margin | WESCO Q2 2026 earnings release | July 30, 2026 |
| Cash and debt at June 30, 2026 | $808.9 million cash and $5,985.9 million total debt, or $5,177.0 million net debt | WESCO Q2 2026 earnings release | July 30, 2026 |
| H1 2026 operating cash flow and free cash flow | $275.1 million operating cash flow and $245.7 million free cash flow, up 156% YOY | WESCO Q2 2026 earnings release | July 30, 2026 |
| Valuation check | 23.75x trailing PE, 18.98x forward PE, 3.21x PB, ~108x P/FCF, 0.93% FCF yield, and 0.58% dividend yield | Pineify financial_rigor.py | July 31, 2026 |
| Technical moving averages and momentum | 50-day $343.62, 200-day $295.63, RSI 54.12, 52-week $197.96 to $377.90 | StockAnalysis statistics | July 31, 2026 |
This WCC AI stock analysis is an informational research tool only. It is not investment advice, a recommendation, or a guarantee of future returns. Forecast scenarios are based on available public data as of the stated cutoff date and can be wrong if data-center demand, backlog conversion, margins, cash conversion, debt, interest expense, customer capital spending, competition, or market conditions change.
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