Is WESCO International, Inc. (WCC) A Good Stock To Buy?

Judging by the fact that WESCO International, Inc. (NYSE:WCC) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few fund managers that decided to sell off their positions entirely by the end of the third quarter. At the top of the heap, Steve Cohen’s Point72 Asset Management dumped the largest position of the 700 funds monitored by Insider Monkey, worth close to $40.6 million in stock, and Phill Gross and Robert Atchinson’s Adage Capital Management was right behind this move, as the fund said goodbye to about $20.7 million worth of WCC shares. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as WESCO International, Inc. (NYSE:WCC) but similarly valued. These stocks are Armstrong World Industries, Inc. (NYSE:AWI), Zynga Inc (NASDAQ:ZNGA), Retail Opportunity Investments Corp (NASDAQ:ROIC), and Core-Mark Holding Company, Inc. (NASDAQ:CORE). This group of stocks’ market caps resemble WCC’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $456 million. That figure was $120 million in WCC’s case. Zynga Inc (NASDAQ:ZNGA) is the most popular stock in this table. On the other hand Retail Opportunity Investments Corp (NASDAQ:ROIC) is the least popular one with only 8 bullish hedge fund positions. WESCO International, Inc. (NYSE:WCC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ZNGA might be a better candidate to consider a long position.

Disclosure: none.