Bessemer Group Inc. lessened its holdings in shares of CDW Corporation (NASDAQ:CDW – Free Report) by 98.5% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 15,123 shares of the information technology services provider’s stock after selling 1,027,782 shares during the period. Bessemer Group Inc.’s holdings in CDW were worth $1,831,000 as of its most recent filing with the SEC.
A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Root Financial Partners LLC lifted its holdings in CDW by 54.7% during the 1st quarter. Root Financial Partners LLC now owns 263 shares of the information technology services provider’s stock worth $32,000 after buying an additional 93 shares during the period. eCIO Inc. bought a new position in shares of CDW during the fourth quarter worth about $61,000. Covestor Ltd lifted its stake in shares of CDW by 53.4% in the fourth quarter. Covestor Ltd now owns 741 shares of the information technology services provider’s stock worth $101,000 after acquiring an additional 258 shares during the period. American National Bank & Trust bought a new stake in CDW in the fourth quarter valued at approximately $110,000. Finally, Brown Brothers Harriman & Co. increased its position in CDW by 38.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 912 shares of the information technology services provider’s stock valued at $124,000 after purchasing an additional 254 shares during the period. 93.15% of the stock is currently owned by institutional investors and hedge funds.
Insider Buying and Selling In related news, Director David W. Nelms acquired 18,000 shares of the stock in a transaction dated Wednesday, May 27th. The stock was purchased at an average cost of $111.43 per share, with a total value of $2,005,740.00. Following the completion of the purchase, the director directly owned 51,025 shares in the company, valued at $5,685,715.75. This trade represents a 54.50% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.82% of the company’s stock.
Analysts Set New Price Targets CDW has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. upgraded shares of CDW from a “neutral” rating to an “overweight” rating and set a $130.00 price target on the stock in a research report on Wednesday, May 27th. Royal Bank Of Canada raised shares of CDW to an “outperform” rating and set a $130.00 target price for the company in a research note on Wednesday, May 27th. Citigroup boosted their target price on shares of CDW from $123.00 to $145.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Weiss Ratings upgraded CDW from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, June 11th. Finally, UBS Group lowered their price objective on CDW from $162.00 to $147.00 and set a “buy” rating for the company in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, CDW currently has an average rating of “Moderate Buy” and an average target price of $146.88.
Check Out Our Latest Analysis on CDW
CDW Price Performance Shares of CDW opened at $129.83 on Thursday. The business’s fifty day moving average is $128.09 and its 200 day moving average is $126.87. CDW Corporation has a 12-month low of $97.12 and a 12-month high of $183.66. The company has a quick ratio of 1.06, a current ratio of 1.16 and a debt-to-equity ratio of 1.81. The stock has a market cap of $16.59 billion, a P/E ratio of 15.79, a P/E/G ratio of 1.72 and a beta of 0.97.
CDW (NASDAQ:CDW – Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The information technology services provider reported $2.28 EPS for the quarter, meeting analysts’ consensus estimates of $2.28. The business had revenue of $5.68 billion during the quarter, compared to analyst estimates of $5.48 billion. CDW had a net margin of 4.70% and a return on equity of 49.67%. CDW’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.15 EPS. Sell-side analysts anticipate that CDW Corporation will post 10.21 earnings per share for the current fiscal year.
CDW Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Monday, May 25th were paid a dividend of $0.63 per share. The ex-dividend date was Friday, May 22nd. This represents a $2.52 dividend on an annualized basis and a yield of 1.9%. CDW’s payout ratio is 30.66%.
CDW Profile (Free Report)
CDW (NASDAQ: CDW) is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.
CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.
Further Reading Five stocks we like better than CDW Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding CDW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CDW Corporation (NASDAQ:CDW – Free Report).
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VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW Corporation (Nasdaq: CDW) announced today that it will host a webcast conference call to discuss its second quarter 2026 results on Wednesday, August 5, 2026, at 7:30 a.m. CT/8:30 a.m. ET. A live webcast (audio with slides) of the conference call will be accessible at investor.CDW.com. The press release and presentation slides will be posted on this website prior to the call. Please visit the website at least fifteen minutes prior to the call to register.
Key Takeaways CDW continues acquisitions and capital allocation to support long-term growth and shareholder returns.CDW returned $282 million to shareholders in Q1 2026 through buybacks and dividends.CDW expects Geared for Growth to deliver $100M-$200M annual run-rate improvements by 2027-2028. CDW Corporation (CDW - Free Report) continues to execute a disciplined capital allocation strategy focused on supporting long-term growth while returning capital to shareholders. The company supplements organic growth through acquisitions that expand its capabilities across key technology areas. Previous acquisitions, including Mission Cloud Services, Enquizit, Sirius Computer Solutions and Lexicon Tech Solutions, have strengthened CDW's cloud, managed services and lifecycle offerings, enabling it to address evolving customer priorities. On the last earnings call, management stated that it continues to evaluate merger and acquisition opportunities that can accelerate its three-part growth strategy while maintaining flexibility within its capital structure.
The company also continues to generate strong cash flow that supports its shareholder-return strategy. During the first quarter of 2026, CDW generated adjusted free cash flow of $251 million, representing 85% of non-GAAP net income and remaining within its long-term objective of converting 80% to 90% of non-GAAP net income into cash. The company utilized this cash in line with its 2026 capital allocation objectives by returning $201 million through share repurchases and $81 million through dividends, bringing total capital returned to shareholders to $282 million, or 112% of adjusted free cash flow during the quarter.
Management remains committed to maintaining net leverage within its targeted range of 2x to 3x while proactively managing liquidity. At the end of the first quarter, net leverage was 2.5x, within the company's target range. CDW also reiterated that dividend growth remains its first capital allocation priority, targeting a payout ratio of approximately 25% of non-GAAP net income, while share repurchases and acquisitions continue to serve as important drivers of shareholder value.
In addition to its capital deployment strategy, CDW expects productivity initiatives under its Geared for Growth program to begin contributing benefits in the second half of 2026. The multi-year initiative is designed to simplify operations, modernize processes and embed AI across the business. Management has identified expected annual run-rate improvements of $100 million to $200 million through 2027 and 2028, with a portion of the savings being reinvested to support the company's broader growth strategy and future investment capacity. Separately, in May 2026, CDW's board authorized an additional $1 billion for share repurchases, increasing the company's remaining buyback authorization as of March 31, 2026, to approximately $1.48 billion subject to future board approvals.
Taking a Look at CDW’s CompetitorsTD SYNNEX Corporation (SNX - Free Report) maintains a balanced capital allocation strategy through shareholder returns while supporting business growth. In fiscal 2025, the company returned $742 million to shareholders, including $596 million through share repurchases and $146 million in dividends. In the second quarter of fiscal 2026, it returned $151 million, comprising $112 million of share buybacks and $39 million of dividends. During the first half of fiscal 2026, TD SYNNEX repurchased $192 million of shares and paid $77 million in dividends. The company stated that this shareholder return policy reflects its financial strength and expectations of generating sufficient earnings and distributable cash flows.
Accenture plc (ACN - Free Report) follows a disciplined capital allocation strategy, balancing acquisitions, investments and shareholder returns. In fiscal 2025, the company invested $1.5 billion across 23 acquisitions, including Avanseus, RANGR Data, Decho and IAMConcepts, to expand capabilities across AI, data, engineering and identity and access management. At the end of the third quarter of fiscal 2026, Accenture held $10.2 billion in cash and cash equivalents against $5 billion in long-term debt, while generating $3.8 billion in operating cash flow and $3.6 billion in free cash flow. The company also maintained its consistent dividend payments, distributing $3.7 billion in fiscal 2025.
CDW Price Performance, Valuation and EstimatesShares of CDW have gained 5.2% in the past month compared with the Computers - IT Services industry’s growth of 1.7%.
Image Source: Zacks Investment Research
Valuation-wise, CDW seems attractive, as suggested by the Value Score of B. CDW trades at a forward 12-month price-to-earnings (P/E) ratio of 12.04, below the industry’s 16.94.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CDW’s earnings for 2026 has been revised marginally upward over the past 60 days.
Image Source: Zacks Investment Research
CDW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CDW (CDW - Free Report) Headquartered in Vernon Hills, IL, CDW Corporation, founded in 1984, provides discrete hardware and software products alongside integrated IT solutions that support mobility, security, data center optimization, cloud computing, virtualization and collaboration environments.
CDW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. CDW has a Momentum Style Score of B, and shares are up 8.6% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $10.75 per share. CDW boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CDW should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CDW (CDW - Free Report) Headquartered in Vernon Hills, IL, CDW Corporation, founded in 1984, provides discrete hardware and software products alongside integrated IT solutions that support mobility, security, data center optimization, cloud computing, virtualization and collaboration environments.
CDW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.96; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.22 to $10.75 per share. CDW also boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CDW should be on investors' short list.
Key Takeaways CDW posted 9% higher Q1 2026 net sales as AI infrastructure investments boosted hardware demand.CDW's full-stack model supports AI deployment through hardware, software and integration services.CDW expanded AI capabilities with GPU-as-a-service access and internal AI productivity initiatives. CDW Corporation (CDW - Free Report) is benefiting from growing demand for AI infrastructure as organizations move beyond experimentation and begin deploying AI in production environments. In the first quarter of 2026, the company delivered strong results driven by AI-related investments and ongoing infrastructure modernization. Customers across industries increased spending on networking, storage, servers, power and cooling solutions as they worked to support AI workloads and address supply constraints.
This demand contributed to a 9% year-over-year increase in net sales, with infrastructure hardware emerging as a major growth driver. CDW also reported strong software demand, particularly for platforms focused on AI readiness, productivity, collaboration and security.
The company believes the shift from AI exploration to large-scale implementation plays directly to its strengths. As organizations deploy AI, they face increasing challenges related to infrastructure design, data management, security, governance and operational execution. CDW’s full-stack model, which combines hardware, software, advisory services and implementation expertise, enables customers to build and manage AI environments more effectively. Management highlighted that AI adoption is driving demand not only for compute resources but also for services that help customers integrate AI into existing technology environments and achieve measurable business outcomes.
CDW is expanding its AI capabilities through internal initiatives and strategic partnerships. The company continues to embed AI across its operations through programs aimed at improving productivity, sales effectiveness and operational efficiency. In addition, CDW recently established a relationship that provides customers access to high-performance AI infrastructure through a flexible GPU-as-a-service model, helping address growing demand for accelerated computing resources. Management stated that AI is increasing wallet share opportunities while also attracting new customers that require broader technology integration capabilities.
CDW expects AI-related investments to remain an important growth catalyst throughout 2026. While management remains cautious about macroeconomic uncertainty and supply-chain dynamics, it continues to expect market outperformance and sees rising demand for AI infrastructure, integration and execution services strengthening the company’s long-term growth opportunity. As AI adoption expands across industries, CDW appears well-positioned to benefit from customers’ increasing need for scalable, end-to-end technology solutions.
Taking a Look at CDW’s CompetitorsVertiv Holdings Co (VRT - Free Report) remains leveraged to rising data center power and thermal needs as AI deployments drive higher infrastructure density and faster build cycles. In first-quarter 2026, the company showed continued demand and execution, with organic sales growth led by the Americas and higher profitability supported by productivity and price-cost. Management raised 2026 guidance and is investing in capacity, services and engineering, while acquisitions extend capabilities in liquid cooling and heat rejection. A strengthened balance sheet following investment-grade ratings and refinancing supports this investment cycle. For the second quarter of 2026, Vertiv expects net sales of $3.25 billion to $3.45 billion (20% to 24% year-over-year growth).
ServiceNow, Inc. (NOW - Free Report) is embedding AI, data connectivity, workflow execution, security and governance into its commercial tiers, with Context Engine grounding AI decisions in live enterprise context. The company is expanding agentic capabilities through offerings such as Autonomous Workforce and Build Agent Skills, which allow developers to deploy custom agents directly onto the platform with built-in controls. Management continues to frame ServiceNow as an AI control tower addressing a total addressable market above $600 billion, supporting a multi-year opportunity across IT, employee, CRM and security workflows. Now Assist demand remains a key driver, with management stating it is on track to exceed the 2026 target of $1 billion in ACV.
CDW Price Performance, Valuation and EstimatesShares of CDW have gained 8% in the past three months against the Computers - IT Services industry’s decline of 8.9%.
Image Source: Zacks Investment Research
Valuation-wise, CDW seems attractive, as suggested by the Value Score of B. CDW trades at a forward 12-month price-to-earnings (P/E) ratio of 12.31, below the industry’s 16.51.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CDW’s earnings for 2026 has been revised marginally upward over the past 60 days.
Image Source: Zacks Investment Research
CDW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CDW (CDW - Free Report) Headquartered in Vernon Hills, IL, CDW Corporation, founded in 1984, provides discrete hardware and software products alongside integrated IT solutions that support mobility, security, data center optimization, cloud computing, virtualization and collaboration environments.
CDW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.1; value investors should take notice.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.12 to $10.61 per share. CDW boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CDW should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CDW (CDW - Free Report) Headquartered in Vernon Hills, IL, CDW Corporation, founded in 1984, provides discrete hardware and software products alongside integrated IT solutions that support mobility, security, data center optimization, cloud computing, virtualization and collaboration environments.
CDW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. CDW has a Momentum Style Score of A, and shares are up 19.8% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.15 to $10.70 per share. CDW also boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CDW should be on investors' short list.
VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW Corporation (Nasdaq: CDW) announced today that its Board of Directors declared a quarterly cash dividend of $0.630 per common share to be paid on June 10, 2026 to all stockholders of record as of the close of business on May 25, 2026. "Dividends represent an important component of our capital allocation priorities, along with share repurchases, strategic M&A, and managing our capital structure," said Albert J. Miralles, chief financial officer, CDW.
CDW topped Wall Street expectations for first-quarter revenue on Wednesday, helped by resilient demand for its information technology solutions as businesses ramp up spending on artificial intelligence and cloud technology.
CDW (CDW) came out with quarterly earnings of $2.28 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $2.15 per share a year ago.
CDW Corporation (CDW) shares have declined nearly 40% since last July, underperforming the S&P 500 by a wide margin. Q1 2026 saw revenue up 9% YoY to $5.68B, but gross margins contracted, particularly in the Government segment, pressuring the stock post-earnings. Management maintained cautious 2026 guidance due to supply chain variability and memory constraints, despite broad-based segment growth.
CDW (CDW) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
The headline numbers for CDW (CDW) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW Corporation (Nasdaq: CDW) announced today that its Board of Directors has authorized a $1 billion increase to the Company's share repurchase program. "Share repurchases represent an important component of our capital allocation priorities, along with dividends, strategic M&A, and managing our capital structure," said Albert J. Miralles, chief financial officer, CDW. "Since our IPO in June 2013 we have returned approximately $8.4 billion to stockholde.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
CDW Corporation (CDW) remains a hold as revenue growth improved in Q1 2026, but quality of growth and margin trends remain concerning. Hardware demand, especially from AI inferencing in Financial Services, drove top-line gains, while netted-down revenue was flat and gross margin fell 60 bps. Corporate segment showed signs of recovery, but pull-forward sales and weak higher-margin mix cloud the sustainability of growth.
CDW NASDAQ: CDW executives said customers are moving beyond artificial intelligence experimentation and are increasingly asking for help deploying AI “safely, economically, and at scale,” during a JPMorgan fireside chat featuring Chair and CEO Christine Leahy and CFO Albert Miralles.
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