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Vernon Hills, Illinois-based CDW Corporation (CDW) provides information technology (IT) solutions. With a market cap of $24.9 billion, the company offers hardware, software, computer peripherals, cloud computing, mobile devices, network communication, and security solutions.
Shares of this leading multi-brand provider of IT solutions have underperformed the broader market over the past year. CDW has declined 22.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. However, in 2025, CDW stock is up 7.2%, surpassing the SPX’s 2.2% rise on a YTD basis.
Narrowing the focus, CDW’s underperformance is also apparent compared to the Technology Select Sector SPDR Fund (XLK). The exchange-traded fund has gained about 17.9% over the past year. However, CDW’s gains on a YTD basis outshine the ETF’s 1% return over the same time frame.
CDW has underperformed the market as the U.S. IT market saw decreased demand from enterprise clients. Moreover, economic uncertainties and constraints on IT spending has dampened investor confidence.
On Feb. 5, CDW shares closed up more than 3% after reporting its Q4 results. Its adjusted EPS of $2.48 surpassed Wall Street expectations of $2.33. The company’s revenue was $5.2 billion, beating Wall Street forecasts of $5 billion.
For fiscal 2025, ending in December, analysts expect CDW’s EPS to grow 1.8% to $9.41 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
Among the 11 analysts covering CDW stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is less bullish than two months ago, with six analysts suggesting a “Strong Buy.”
On Feb. 6, Morgan Stanley (MS) analyst Erik Woodring maintained a “Hold” rating on CDW with a price target of $201, implying a potential upside of 7.8% from current levels.
The mean price target of $223.10 represents a 19.6% premium to CDW’s current price levels. The Street-high price target of $240 suggests an upside potential of 28.7%.
