5 Best Industrial Distribution Stocks to Buy Now

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

Number of Hedge Fund Holders: 51

Pittsburgh, Pennsylvania-based WESCO International, Inc. (NYSE:WCC) is a leading provider of business-to-business distribution, logistics services and supply chain solutions. It operates in more than 50 countries through a network of nearly 800 branches, warehouses, and sales offices.

On May 4, WESCO International, Inc. (NYSE:WCC) released its financial results for Q1 2023. Its net revenue surged by 12% y-o-y to $5.5 billion while net income increased by 9% y-o-y to $197 million. The surge in the revenue reflects multiple factors including inflation and volume growth, secular demand trends, cross-selling, and the acquisition of Rahi Systems Holdings, Inc., a hyperscale data center solutions provider.

Following the earnings release, Baird analyst David Manthey upgraded the rating on WESCO International, Inc. (NYSE:WCC) shares to ‘Outperform’ from ‘Neutral’ with a target price of $180. The analyst cited plentiful secular growth factors for the company as the main reason for the upgrade.

As of Q1 2023, WESCO International, Inc. (NYSE:WCC) was the second best industrial distribution stock according to hedge funds as 51 of them held its shares with a total value of $2.2 billion.