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CDW Corporation (CDW) Stock Analysis

Range Bound setup

SellVALUE-TRAP 1/5High Confidence

Technology · Information Technology Services

Earnings in 5 days (2026-05-06). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $135.41, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5; Thin upside margin: 6.8%.

CDW is a multi-brand IT solutions provider serving business, government, education, and healthcare customers in the US (~90% of net sales), UK, and Canada through 10,500+ customer-facing coworkers. Revenue comes from selling hardware, software, and integrated IT solutions across... Read more

$135.41+6.8% A.UpsideScore 5.3/10#19 of 35 Information Technology Services
Stop $127.57Target $144.59(analyst − 13%)A.R:R 0.7:1
Analyst target$166.20+22.7%10 analysts
$144.59our TP
$135.41price
$166.20mean
$195

Sell if holding. At $135.41, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5; Thin upside margin: 6.8%. Chart setup: RSI 56 mid-range, Bollinger mid-band. Score 5.3/10, high confidence.

Passes 4/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and earnings proximity 5d<=7d. Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Risks
Thin upside margin: 6.8%
Leverage penalty (D/E 2.4): -1.5
Earnings in 5 days (event risk)

Key Metrics

P/E (TTM)16.9
P/E (Fwd)12.1
Mkt Cap$17.7B
EV/EBITDA11.8
Profit Mgn4.8%
ROE43.0%
Rev Growth6.3%
Beta1.02
Dividend1.84%
Rating analysts17

Quality Signals

Piotroski F6/9

Options Flow

P/C1.14bearish
IV70%elevated
Max Pain$75-44.6% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMSupplierIngram Micro and TD SYNNEX
    10-K Item 1A: 'purchases from two wholesale distributors, Ingram Micro and TD SYNNEX, represent over 25% of our total purchases'

Material Events(8-K, last 90d)

  • 2026-03-27Item 5.02LOW
    Sanjay Mehrotra informed CDW he will not stand for reelection at the 2026 Annual Meeting; will continue serving through current term. No disagreement with operations, policies, or practices cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
3.8
Revenue Growth
4.1
GatesMomentum 4.4<4.5A.R:R 0.7 < 1.5@spotDeath cross (50MA < 200MA)EARNINGS PROXIMITY 5d<=7dInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
56 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $121.78Resistance $143.64

Price Targets

$128
$145
A.Upside+6.8%
A.R:R0.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Momentum score 4.4/10 — below 4.5 minimum
! Reward/Risk 0.7:1 at current price — below 1.5:1 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-06 (5d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CDW stock a buy right now?

Sell if holding. At $135.41, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.4): -1.5; Thin upside margin: 6.8%. Chart setup: RSI 56 mid-range, Bollinger mid-band. Prior stop was $127.57. Score 5.3/10, high confidence.

What is the CDW stock price target?

Take-profit target: $144.59 (+6.8% upside). Prior stop was $127.57. Stop-loss: $127.57.

What are the risks of investing in CDW?

Thin upside margin: 6.8%; Leverage penalty (D/E 2.4): -1.5; Earnings in 5 days (event risk).

Is CDW overvalued or undervalued?

CDW Corporation trades at a P/E of 16.9 (forward 12.1). TrendMatrix value score: 7.0/10. Verdict: Sell.

What do analysts say about CDW?

17 analysts cover CDW with a consensus score of 3.8/5. Average price target: $166.

What does CDW Corporation do?CDW is a multi-brand IT solutions provider serving business, government, education, and healthcare customers in the US...

CDW is a multi-brand IT solutions provider serving business, government, education, and healthcare customers in the US (~90% of net sales), UK, and Canada through 10,500+ customer-facing coworkers. Revenue comes from selling hardware, software, and integrated IT solutions across Corporate, Small Business, and Public segments.

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