WESCO INTERNATIONAL INC

50.16 +1.01 (+2.01%) Sell

WCC investors hold onto their investments as it marginally outperforms

13 min read

WCC was among the best performers today. On a longer term basis, investors in WESCO INTERNATIONAL INC made -0.01% per day. Wednesday's performance of +2.01% was a significant outperformance compared to it's daily average.

[Themes containing WCC]

Buy-and-Hold investors in WCC experienced a maximum drawdown of -22.85% over the last three months. It returned -17.64% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +15.44%.

Trend

WCC has been underperforming the SP500 index in recent time, after having outperformed till 25 Jan, 2017. Over the last 2 years 11 months and 8 days, WCC underperformed the SP500 index on 48% days. Which indicates that on days WCC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WCC was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +6.34%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.79%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -16.21% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +10.31% to investors.

On monthly basis, WCC delivered losses in more months over the last year, than profits. WCC delivered profits less regularly than SP500 index. WCC was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.84% compared to -7.28% returned by SP500 index in Oct 2018. WCC had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -16.2%.

The stock market clearly values companies that can deliver disruptive innovation.
-- Steve Blank

WCC is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in WCC's volatility from 13 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that WCC has significant positive skewness in it's return distribution. This indicates that investors can expect WCC to recover from drawdowns quickly. Which makes WCC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than WCC. Therefore, SP500 must receive a lower allocation than WCC in your portfolio. SP500 index usually has shorter drawdown period than WCC.

On a general note (since you are interested in WCC), three instruments that deserve special mention are NSPR, APRN and AYTU. They have all outperformed the market and must be closely watched for investment opportunities.

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