Over the past five years, only 20% of public wholesale distributors beat the S&P 500, according to a recent Bain survey. In fact, most actually destroyed shareholder value. Should investors shun distribution altogether? No—wholesalers still account for $4 trillion in sales and one in every 20 U.S. jobs. But investors can benefit if they start using new analytical tools that help predict which sectors will do well and which won't. This article explains how the tools work and uses powerful examples to make the case for the tools in the first place.