WESCO International (WCC)

Are now feeding into data centre growth. Facing tariffs, their business is lumpy, but that is starting to end. Future earnings growth will settle around 15%, strong. Their PE will remain under 20x.

WCC is a $7.8B business-to-business distribution, logistics services, and supply chain solutions company, which was originally founded in 1922. It mostly offers solutions to the construction, industrial, and OEM markets, as well as network infrastructure, security, and utility services. It pays a small 1.1% yield but it has a nice buyback program in place, sales growth has been strong over the years, but fairly volatile, and margins have expanded nicely. It generates strong cash flows and trades at an attractive valuation of 11.7X forward P/E. We think it looks interesting, but growth prospects over the next couple of years are somewhat muted. The leadership team is strong and given the company's extensive history, we are comfortable with the management team.
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Has owned for a while, came to own it when they acquired a company called Annexter, which was part of their small cap portfolio. Nuts of bolt company with 50,000 suppliers in their supply change. A distributor. Everybody uses their products. Had a solid report. Making great inroads in the margin expansion. Purchased an Australian company, Pope, that is accretive. Likes it here. 

Trading very inexpensive at current valuation. Has been growing through M&A. Very good for long term investors. Excellent management team. Very strong demand for products. Elevator business performing very well as not much competition.