How Is CDW Corporation's Stock Performance Compared to Other Information Technology Services Stocks?

With a market cap of $22.9 billion, Vernon Hills, Illinois-based CDW Corporation (CDW) is a leading provider of integrated information technology (IT) solutions. The company offers a wide range of hardware, software, and integrated solutions, including cloud, security, data center optimization, and collaboration tools.

Companies worth more than $10 billion are generally described as “large-cap” stocks, and CDW fits this criterion perfectly. With a broad portfolio of over 100,000 products and services from more than 1,000 brands, CDW offers hardware, software, and comprehensive IT solutions, including cloud computing, security, data center optimization, and collaboration tools.

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However, the information technology company pulled back 35% from its 52-week high of $263.37. Shares of CDW have declined 1.9% over the past three months, outperforming the Fidelity MSCI Information Technology Index ETF’s (FTEC) 10.3% decrease over the same time frame.

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Longer term, CDW stock is down 1.6% on a YTD basis, outperforming FTEC’s 8.7% decline. Nevertheless, shares of CDW have dipped 31.7% over the past 52 weeks, lagging behind FTEC’s 7.9% return over the same time frame.

CDW stock has been trading mostly below its 50-day and 200-day moving averages since last year.

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Shares of CDW rose 3.4% on Feb. 5 after the company reported Q4 2024 adjusted EPS of $2.48, surpassing the estimate. The company reported Q4 net sales of $5.2 billion, beating the estimate, driven by solid demand for IT solutions, particularly in cloud and endpoint services. The company announced a $750 million increase in its share repurchase program, signaling strong shareholder returns. Additionally, solid performance in the healthcare vertical, with 27.5% growth, boosted investor confidence despite weaknesses in the government and education sectors.

However, in comparison, rival International Business Machines Corporation (IBM) has outperformed CDW. Shares of IBM have gained 26.4% over the past 52 weeks and 11.6% on a YTD basis.

Despite CDW’s weak performance, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 11 analysts covering the stock, and as of writing, it is trading below the mean price target of $223.10.