(CNXN) PC Connection - Ratings and Ratios

PC Connection Inc (NASDAQ:CNXN) is a global IT solutions provider operating through three distinct segments: Enterprise Solutions, Business Solutions, and Public Sector Solutions. The company offers a comprehensive range of IT products, including computer systems, data center solutions, software, and networking communications, as well as a portfolio of managed and professional services. With a strong online presence through multiple websites, including connection.com and macconnection.com, PC Connection caters to a diverse customer base, from small office/home office clients to medium-to-large corporations, government institutions, and educational organizations.

Founded in 1982 and headquartered in Merrimack, New Hampshire, PC Connection has established itself as a key player in the Technology Distributors sub-industry. The companys business model combines outbound inside and field sales with digital, web, and print media advertising, as well as targeted marketing programs to reach specific customer populations. With a market capitalization of $1.67 billion, PC Connections financial performance is characterized by a P/E ratio of 19.75 and a forward P/E of 18.90, indicating a relatively stable valuation. The companys Return on Equity (RoE) stands at 9.82%, suggesting a decent level of profitability.

From a technical analysis perspective, PC Connections stock price has been trending below its short-term and long-term moving averages, with the SMA20, SMA50, and SMA200 standing at 65.91, 64.47, and 68.16, respectively. The current price of $62.91 is near the lower end of its 52-week range, with a high of $76.09 and a low of $58.77. The Average True Range (ATR) is 1.29, representing a volatility of 2.05%. Based on these technical indicators, it appears that the stock is experiencing a downtrend, potentially presenting a buying opportunity for investors.

Combining fundamental and technical analysis, a forecast for PC Connection Inc can be constructed. Given the companys stable valuation, decent profitability, and the current downtrend in its stock price, a potential buying opportunity emerges. If the stock price were to revert to its mean, a price target of $65-68 could be expected, representing a potential upside of 3-8%. However, this forecast is contingent upon the companys ability to maintain its profitability and navigate the competitive landscape of the Technology Distributors sub-industry.