Stock of the Day

CDW (CDW)

$150.48

-$3.85 (-2.5%)

Market Cap: $19.29B

About CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.

It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.

CDW Bull Case

Here are some ways that investors could benefit from investing in CDW Co.:

• CDW Co. recently completed the acquisition of Lovelytics for approximately $525 million, a move that significantly deepens the company's capabilities in modern cloud, data, and AI services, positioning it to capitalize on growing enterprise demand for artificial intelligence integration.
• The company demonstrated strong financial execution in its most recent quarter, reporting net sales growth of 10.0% to $6.57 billion and earnings per share of $2.91, which beat analyst consensus estimates of $2.80, indicating robust customer demand for infrastructure modernization and technology solutions.
• With the current stock price at $150.10, CDW Co. trades at a price-to-earnings ratio of 18.04, which some analysts view as undervalued relative to its growth trajectory, particularly given that the consensus price target from Wall Street analysts is $150.12, suggesting the stock is fairly valued with potential for upside as AI initiatives materialize.
• Institutional investor confidence is high, with 93.15% of the stock owned by hedge funds and other institutional investors, and recent filings show significant new positions being opened by firms like NorthCrest Asset Management, which acquired 96,481 shares in the third quarter, signaling strong professional interest in the company's long-term prospects.
• CDW Co. maintains a consistent dividend yield of 1.66%, providing a steady income stream for investors, supported by a sustainable dividend payout ratio of 30.29%, which indicates the company has ample cash flow to maintain shareholder returns while funding growth initiatives.

CDW Bear Case

Investors should be bearish about investing in CDW Co. for these reasons:

• Short interest in CDW Co. has been rising, with shares shorted increasing to 9,319,664 as of September 30, 2026, representing a short percentage of float of 7.52%, which suggests a notable portion of the market is betting against the stock's future performance.
• The company carries a high debt-to-equity ratio of 1.97, indicating significant leverage on its balance sheet, which could limit financial flexibility and increase risk if interest rates remain elevated or if revenue growth slows down.
• Recent insider activity includes a significant sale by Elizabeth Connelly, who sold 26,695 shares in August 2026, reducing her ownership by 43.83%, which may signal a lack of confidence from key insiders in the current valuation or future outlook.
• CDW Co. has experienced volatility in its stock price, hitting a 52-week low of $97.12 in May 2026 before recovering, and the stock has crossed below its 200-day moving average multiple times in the past year, reflecting periods of significant downward pressure and uncertainty among investors.
• While the company is expanding into AI, it faces intense competition in the technology distribution and services sector, and the high beta of 0.95 indicates that the stock is sensitive to broader market movements, potentially exposing investors to higher volatility during market downturns.

Recent News

• CDW Canada Awarded Canadian Partner Excellence Award by Dell Technologies for the Fifth Consecutive Year (financialpost.com)
• CDW Canada Awarded Canadian Partner Excellence Award by Dell Technologies for the Fifth Consecutive Year (businesswire.com)
• CDW rises as investors weigh AI expansion and solid recent execution (quiverquant.com)