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CDW Corporation (CDW), headquartered in Vernon Hills, Illinois, provides technology solutions for business, government, education, and healthcare sectors. With a market cap of $30.63 billion, CDW plays a vital role in the tech industry, offering a broad range of products and services, including hardware, software, and integrated IT solutions, to help organizations enhance their technological capabilities and drive innovation.
Companies valued at $10 billion or more are typically classified as “large-cap” stocks, and CDW Corporation rightly fits into that category. CDW emphasizes long-term partnerships and exceptional service as core elements of its corporate strategy, driving technological transformation for businesses and institutions globally.
CDW shares are trading 13.5% below their 52-week high of $263.37, which they hit on Apr. 4. Also, the stock has declined 1.2% over the past three months, underperforming the Dow Jones Industrial Average Index’s ($DOWI) 8.2% returns over the same time frame.
In the longer term, CDW is up marginally on a YTD basis, and the shares have gained 9.2% over the past 52 weeks. The Dow has gained 11.5% in 2024 and 21.8% over the past year.
To confirm its bearish trend, CDW has been trading below its 200-day moving average since late August. However, it's been trading above the 50-day moving average recently.
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.
Highlighting the contrast in performance, rival Arista Networks, Inc. (ANET) has outperformed CDW and the border index, with a 105.2% gain over the 52 weeks.
Despite CDW's recent underperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 11 analysts in coverage. The mean price target is $251.20, which suggests a premium of 10.2% to its current levels.
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.
