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Headquartered in Vernon Hills, Illinois, CDW Corporation (CDW) is a leading provider of technology solutions to business, government, education, and healthcare customers. With a market cap of $30.51 billion, CDW offers various hardware, software, and integrated IT solutions, helping organizations navigate and thrive in an increasingly digital world. The company's customer-centric approach, coupled with a robust portfolio of products and services, positions CDW as a trusted partner in delivering innovative and reliable technology solutions across the U.S.
CDW has significantly underperformed the broader market over the last year. The stock has gained 8.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. In 2024, the stock has declined 1.2%, compared to SPX's 17.2% gains on a YTD basis.
Narrowing the focus, CDW also underperformed the First Trust NASDAQ-100-Technology Sector Index Fund (QTEC). The exchange-traded fund has gained 6% on a YTD basis.
On Jul. 31, CDW reported Q2 earnings. The company reported a net income of $281.10 million, or $2.50 per share, which fell short of Wall Street's expectations of $2.51 per share. However, the company's revenue of $5.42 billion exceeded analysts’ estimates of $5.40 billion. Shares of CDW declined 6.2% on the day of the earnings release.
For the current fiscal year, ending in December, analysts expect CDW’s EPS to decline 1.5% to $9.40 on a diluted basis. The company's earnings surprise history is mixed. It missed the consensus estimate in two of the last four quarters while beating the forecast on two other occasions.
Among the 11 analysts covering CDW stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Aug. 20, Amit Daryanani from Evercore ISI maintained a “Buy” rating on CDW, with a price target of $250, which indicates an 11.4% upside from the current levels.
The mean price target of $251.20 represents an 11.9% premium compared to CDW’s current price levels. The Street-high price target of $270 suggests an upside potential of 20.3%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
