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Barchart
Barchart
Neha Panjwani

CDW Corporation Stock: Is CDW Underperforming the Technology Sector?

Vernon Hills, Illinois-based CDW Corporation (CDW) provides information technology (IT) solutions. With a market cap of $15.3 billion, the company offers hardware, software, computer peripherals, cloud computing, mobile devices, network communication, and security solutions.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and CDW perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the information technology services industry. CDW's strengths include its diversified IT solutions portfolio, scale, and strong vendor relationships, enabling competitive pricing and cross-selling. The company's talent management and culture drive innovation and adaptability. 

 

Despite its notable strength, CDW slipped 38.2% from its 52-week high of $192.30, achieved on May 14, 2025. Over the past three months, CDW stock declined 20.7%, underperforming the Technology Select Sector SPDR Fund’s (XLK5.1% losses during the same time frame.

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Shares of CDW fell 12.7% on a YTD basis and dipped 28.4% over the past 52 weeks, significantly underperforming XLK’s 2.5% dip on a YTD basis and 34.8% returns over the same time frame.

To confirm the bearish trend, CDW has been trading below its 50-day moving average since late July, 2025, with slight fluctuations. The stock is trading below its 200-day moving average over the past year, experiencing minor fluctuations.

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On Feb. 4, CDW shares surged 9.5% after reporting its Q4 results. Its adjusted EPS of $2.57 exceeded Wall Street expectations of $2.44. The company’s revenue was $5.5 billion, surpassing Wall Street forecasts of $5.3 billion.

In the competitive arena of information technology services, International Business Machines Corporation (IBM) has lagged behind CDW, with a 16% downtick on a YTD basis, but outpaced the stock with a slight decline over the past 52 weeks.

Wall Street analysts are reasonably bullish on CDW’s prospects. The stock has a consensus “Moderate Buy” rating from the 12 analysts covering it, and the mean price target of $167.40 suggests an ambitious potential upside of 40.8% from current price levels.

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