10 Best Economic Recovery Stocks to Buy

6. WESCO International, Inc. (NYSE:WCC)

Estimated average analysts’ upside: 60.09%

Revenue CAGR last 5 years: 22.96%

Number of Hedge Fund Holders: 62

​​​WESCO International, Inc. (NYSE:WCC) provides business-to-business distribution, logistics services, and supply chain solutions to a diverse clientele in the industrial, construction, utility, and commercial sectors. The typical products offered by WCC include electrical equipment, automation and connected devices, security solutions, and utility and broadband products that are designed to facilitate the production/operational processes of clients. Demand for the company’s products tends to accelerate significantly during economic recoveries, when industrial capex is stimulated by low financing costs and the need to boost production capacity.

WESCO International, Inc. (NYSE:WCC) returned to sales growth in Q4 2024, driven by exceptional growth in its Data Center business, which increased more than 70%, along with 20% growth in Broadband and renewed positive momentum in Electrical and Electronics Solutions. The company generated a record free cash flow of over $1 billion in 2024, representing 154% of adjusted net income, while reducing net debt by $431 million and purchasing $425 million of shares. Gross margin remained stable for the full year, though there was some pressure in communications and security solutions due to data center project deployments.

Looking ahead to 2025, WESCO International, Inc. (NYSE:WCC) expects organic sales growth of 2.5% to 6.5% with operating margin expansion across all three business units. The company is well-positioned to capitalize on secular trends, including AI-driven data centers, increased power generation, electrification, automation, and reshoring. Strategic portfolio moves, including the divestiture of the low-margin Integrated Supply business and the addition of higher-margin services businesses like Ascent, are integral to achieving WCC’s 10-plus percent EBITDA margin goals. The company plans to strengthen its balance sheet by fully redeeming outstanding preferred equity in June 2025, which is expected to improve both cash flow and EPS. Sell-side analysts estimate a 60.09% average upside for WCC, and it is, therefore, one of the best economic recovery stocks to consider.