(CDW) CDW - Ratings and Ratios

CDW Corporation is a leading provider of comprehensive IT solutions, catering to a diverse customer base across the United States, the United Kingdom, and Canada. The companys business is structured around three primary segments: Corporate, Small Business, and Public, allowing it to effectively target and serve various markets. CDWs product and service portfolio is extensive, encompassing discrete hardware and software, integrated IT solutions, and a range of services including advisory, design, implementation, and managed services. This broad offering enables the company to support its customers evolving IT needs, from on-premise and cloud infrastructure to digital experience and security. With a history dating back to 1984, CDW has established itself as a trusted partner for businesses, government entities, educational institutions, and healthcare organizations, providing them with the technology and expertise required to stay competitive.

From a market perspective, CDW operates within the Technology Distributors sub-industry, a sector characterized by the provision of IT products and services to a wide range of customers. The companys ability to deliver a broad spectrum of IT solutions positions it well within this competitive landscape. With a market capitalization of $24.762 billion, CDW demonstrates a significant presence in the market. Its financial performance is reflected in a return on equity (ROE) of 47.24%, indicating a strong ability to generate profits from shareholder equity. The companys forward price-to-earnings ratio stands at 19.72, suggesting a relatively favorable valuation compared to its expected earnings growth.

Analyzing the technical data, CDWs stock price is currently at $179.35, with its 20-day simple moving average (SMA) at $182.30 and its 50-day SMA at $166.83. The stock is below its 200-day SMA of $187.75, indicating a potential longer-term downtrend. The average true range (ATR) is $4.87, representing a 2.72% daily price movement. Given these indicators, a potential trading strategy could involve monitoring the stocks movement in relation to its SMAs and ATR. If the stock price were to move above its 20-day SMA and subsequently break through the 200-day SMA, it could signal a bullish trend. Conversely, a drop below the 50-day SMA could indicate a bearish outlook.

Forecasting CDWs future performance involves integrating both technical and fundamental data. With a P/E ratio of 23.30 and a forward P/E of 19.72, the market anticipates a growth in earnings. If CDW can maintain its ROE and continue to grow its earnings, the stock could see an upward revaluation. Technically, a break above the 52-week high of $236.75 could signal further upside potential, driven by a combination of improved fundamentals and positive market sentiment. Conversely, failure to break through resistance levels or a decline below key support levels could indicate a challenging period ahead. Therefore, a potential forecast is that CDWs stock could see a gradual increase towards $200-$220 in the near term, contingent upon sustained earnings growth and a favorable market environment.