This Electrical Product Maker Is Well Positioned: WESCO International, Inc. (WCC), FLIR Systems, Inc. (FLIR), Applied Industrial Technologies (AIT)

AIT is busy on the acquisition trail, mostly buying out much smaller entities. The company also is seeing gains from cost controls. It is guiding for an acceleration of earnings in the second half of 2013.

The upside potential for AIT’s Service Center-based distribution segment is decent. It also operates a Fluid Power unit that serves manufacturers and is growing. Plus, AIT has the leeway to fund further buyouts that might provide further increases. Thus, AIT shares are worth adding to a portfolio and might receive a boost from positive earnings surprises as the year progresses.

Electrical equipment stocks are more than just cyclical in certain instances. In addition to sector exposure, one must look into how the companies are expanding geographically and through acquisitions to gauge profit outlooks. Both ECC and AIT should both be considered as companies that may outperform behind their managements’ growth plans.

The article This Electrical Product Maker Is Well Positioned originally appeared on Fool.com and is written by Damon Churchwell.

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