10 Most Undervalued Growth Stocks to Buy Now

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

Forward P/E ratio: 9.42

Revenue CAGR last 5 years: 20.49%

Number of Hedge Fund Holders: 62

​​WESCO International, Inc. (NYSE:WCC) is a distributor of electrical, industrial, and communications products, as well as maintenance, repair, and operations (MRO) supplies. The company’s competitive advantage is based on its global presence and ability to serve a diverse clientele, including commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. WCC ranked 6^th on our recent list of 10 Best Economic Recovery Stocks to Buy.

WESCO International, Inc. (NYSE:WCC) returned to sales growth in Q4, driven by over 70% growth in global Data Center business and 20% growth in Broadband business, along with positive momentum in Electrical and Electronics Solutions. For the full year 2024, the company delivered record free cash flow exceeding $1 billion (154% of adjusted net income), while reducing net debt by $431 million. The company also made significant progress on enterprise-wide digitalization efforts and business transformation, with technology and capabilities built more than halfway complete.

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 plans to generate $600-800 million in free cash flow and increase its common stock dividend by 10% while continuing share buybacks. Management believes WCC is well-positioned for outsized growth driven by secular trends in AI-driven data centers, increased power generation, electrification, automation, and reshoring, with a strong pipeline of strategic acquisitions aligned with expanding service offerings. With strong guidance ahead and a single-digit forward P/E, WCC ranked third on our list of the most undervalued stocks to consider.