10 Best Stocks to Buy According to Seth Klarman

4. Wesco International Inc. (NYSE:WCC)

Baupost Group’s Equity Stake: $259.79 Million

Number of Hedge Fund Holders: 62

Wesco International Inc. (NYSE:WCC) is an industrial company that provides business-to-business distribution, logistics services, and supply chain solutions. It offers products and supply chain solutions, including electrical equipment and supplies, automation and connected devices, security, and lighting. Additionally, the company is capitalizing on secular growth trends owing to its significant exposure to data center utility and broadband markets.

Wesco International Inc. (NYSE:WCC) delivered solid fourth-quarter and full-year 2024 results. Net sales in the fourth quarter were up 0.5% year-over-year to $5.49 billion, and organic sales grew 2.4%. Net income attributable to shareholders totaled $151 million, up from $127.6 million as of the fourth quarter of 2023.

The company’s data center business emerged as a stand-out performer, going with 70% growth yearly. The growth came as Wesco International Inc. (NYSE:WCC) increasingly benefits from the growing demand for data center capacity amid the artificial intelligence boom. With more than $2 billion in M&A firepower at its disposal, WESCO has laid out ambitious intentions for mergers and acquisitions. This tactic could hasten development and increase the company’s visibility in the marketplace.