Vernon Hills, Illinois-based CDW Corporation (CDW) provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. With a market cap of $21.5 billion, CDW operates through Corporate, Small Business, and Public segments.
Companies worth $10 billion or more are generally described as “large-cap stocks.” CDW fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the information technology services industry.
Despite its notable strengths, CDW stock has plunged 28.8% from its 52-week high of $230.86 touched on Sept. 20, 2024. Meanwhile, the stock has declined nearly 6% over the past three months, notably underperforming the Nasdaq Composite’s ($NASX) 12.6% surge during the same time frame.
CDW’s performance has remained grim over the longer term as well. CDW stock has dropped 5.6% in 2025 and plunged 24.9% over the past 52 weeks, underperforming NASX’s 14.7% gains on a YTD basis and 26% surge over the past year.
CDW stock has traded mostly below its 200-day moving average over the past year with minor fluctuations and below its 50-day moving average since late August, underscoring its bearish trend.
CDW’s stock prices observed a marginal uptick in the trading session following the release of its better-than-expected Q2 results on Aug. 6. Despite the dynamic macro environment and threat of AI to the IT services industry, the company showcased immense resilience during the quarter. CDW’s net sales for the quarter soared 10.2% year-over-year to approximately $6 billion, exceeding the Street’s expectations by a significant 8.6%. Meanwhile, it observed a slight contraction in gross margins, leading to a much more modest 3.9% growth in non-GAAP EPS to $2.60, which also surpassed the consensus estimates by a notable margin.
CDW has outperformed its peer, Gartner, Inc.’s (IT) 49% plunge on a YTD basis and 51.1% decline over the past 52 weeks, by a significant margin.
Among the 12 analysts covering the CDW stock, the consensus rating is a “Moderate Buy.” Its mean price target of $206.80 suggests a 25.9% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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. This article was originally published on Barchart.com
