Seth Klarman Is Buying These 5 Value Stocks in 2026

2. WESCO International (NYSE:WCC)

Baupost’s Stake $393,159,000

WESCO International (NYSE:WCC) is an industrial distributor serving customers in construction, data centers, utilities, and industrial facilities. Unlike pure manufacturers, it provides electrical, communications, and security products and services all under one roof — making it a one-stop shop for large, complex projects.

Data centers are now the company’s most powerful growth engine. WESCO International’s (NYSE:WCC) data center sales hit $4.3 billion in 2025, up 50% year-over-year, fueled by hyperscale and AI-driven infrastructure demand. The company is embedded across the entire data center lifecycle — from initial power and electrical buildout all the way through connectivity, IT infrastructure, and AI compute environments. This means recurring, sticky revenue rather than one-off contracts.

Scale is WESCO International’s (NYSE:WCC) biggest competitive edge. It operates across more than 50 countries with a distribution network that is extremely difficult to replicate. Its closest rival, W.W. Grainger, focuses more narrowly on industrial MRO, while manufacturers like Hubbell and nVent have deeper supply chain control but lack WESCO’s breadth and reach. No single competitor matches WESCO’s end-to-end capability.

WESCO International (NYSE:WCC) trades at a Price/Sales ratio of 0.57x versus a sector median of roughly 1.8x — meaning the market is pricing it like a low-margin commodity distributor, when in reality it is a high-value distribution network with real pricing power and accelerating growth in one of the hottest infrastructure themes in the market today.

Diamond Hill Mid Strategy stated the following regarding WESCO International, Inc. (NYSE:WCC) in its fourth quarter 2025 investor letter:

“Electrical products distributor WESCO International, Inc. (NYSE:WCC) outperformed in Q4 after reporting solid Q3 results and raising 2025 guidance. Better-than-expected organic growth was driven by its rapidly expanding data center business, which reached nearly 20% of total revenue.”