Is CDW Inventory Underperforming the Nasdaq?

Vernon Hills, Illinois-based CDW Company (CDW) offers info expertise (IT) options in america, the UK, and Canada. With a market cap of $21.5 billion, CDW operates by means of Company, Small Enterprise, and Public segments.

Firms price $10 billion or extra are usually described as “large-cap shares.” CDW matches proper into that class, with its market cap exceeding this threshold, reflecting its substantial dimension and affect within the info expertise providers business.

Regardless of its notable strengths, CDW inventory has plunged 28.8% from its 52-week excessive of $230.86 touched on Sept. 20, 2024. In the meantime, the inventory has declined practically 6% over the previous three months, notably underperforming the Nasdaq Composite’s ($NASX) 12.6% surge throughout the identical timeframe.

CDW’s efficiency has remained grim over the long run as properly. CDW inventory has dropped 5.6% in 2025 and plunged 24.9% over the previous 52 weeks, underperforming NASX’s 14.7% features on a YTD foundation and 26% surge over the previous yr.

CDW inventory has traded principally beneath its 200-day shifting common over the previous yr with minor fluctuations and beneath its 50-day shifting common since late August, underscoring its bearish pattern.

CDW’s inventory costs noticed a marginal uptick within the buying and selling session following the discharge of its better-than-expected Q2 outcomes on Aug. 6. Regardless of the dynamic macro setting and risk of AI to the IT providers business, the corporate showcased immense resilience throughout the quarter. CDW’s web gross sales for the quarter soared 10.2% year-over-year to roughly $6 billion, exceeding the Road’s expectations by a big 8.6%. In the meantime, it noticed a slight contraction in gross margins, resulting in a way more modest 3.9% progress in non-GAAP EPS to $2.60, which additionally surpassed the consensus estimates by a notable margin.

CDW has outperformed its peer, Gartner, Inc.’s (IT) 49% plunge on a YTD foundation and 51.1% decline over the previous 52 weeks, by a big margin.

Among the many 12 analysts masking the CDW inventory, the consensus score is a “Average Purchase.” Its imply worth goal of $206.80 suggests a 25.9% upside potential from present worth ranges.

On the date of publication, Aditya Sarawgi didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially printed on Barchart.com