Billionaire Seth Klarman’s 10 Stock Picks with Huge Upside Potential

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

Upside Potential as of April 29: 30.94%

Baupost Group’s Stake Value: $259,799,000

WESCO International, Inc. (NYSE:WCC) provides business-to-business distribution, logistics services, and supply chain solutions. The company distributes electrical, industrial, communications, and security maintenance, repair, and operations (MRO) products. It serves customers in industrial, utility, commercial, institutional, and government markets across more than 50 countries worldwide.

WESCO International, Inc. (NYSE:WCC) returned to sales growth in Q4 2024. Net sales grew by 0.5% year-over-year to $5.5 billion, and organic sales increased by 2.4%. According to management, this growth came on the back of over 70% expansion in the company’s global Data Center business and 20% growth in Broadband Solutions. The company generated $21.8 billion in net sales for the full year 2024. The corporation is making significant progress on its enterprise-wide digitalization efforts and business transformation.

According to CEO John Engel, the company is more than halfway complete on its technology and capabilities build. This is expected to accelerate earnings growth through greater cross-selling, and expand margins through improved pricing and operating cost leverage. For 2025, management expects organic sales to grow 2.5% to 6.5%, operating margin to expand, and free cash flow between $600-800 million.

On March 17, 2025, KeyBanc Capital Markets adjusted its price target for WESCO International, Inc. (NYSE:WCC) to $205 from $245 while maintaining an Overweight rating. Despite this reduction, analyst Ken Newman remains optimistic about WESCO’s prospects, highlighting the company’s improving capital structure and attractive valuation compared to peers.