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On October 22, 2026, CDW Corp CDW shares rose 4.0%, closing at $164.62. The stock has shown strong performance lately, with a 52-week range of $97.12 to $165.56.

GF Value™ verdict: CDW is currently priced at $164.62, which is 23.5% below its GF Value™ estimate of $215.32, indicating an undervalued position. GF Score™: CDW holds a strong score of 83/100, suggesting solid fundamentals and growth potential. Notable signal: Insider activity shows a net selling of $2.3M in the last 12 months, with $2.5M in buying against $4.8M in selling. Is CDW Overvalued or Undervalued? According to the GF Value™, which is GuruFocus' proprietary intrinsic value estimate based on historical trading multiples and forecasts about future performance, CDW is currently undervalued. With a current price of $164.62 and a GF Value™ of $215.32, this represents a significant margin of safety of 23.5%. The GF Valuation label classifies the stock as modestly undervalued, providing a compelling opportunity for investors who seek value in their portfolios. However, it is important to approach this valuation with caution and consider the broader market conditions and company performance.

How Does CDW's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.8x 23.4x Forward P/E 13.7x - CDW's current P/E ratio of 19.8x is 15% below its 5-year median P/E of 23.4x, indicating that the stock is trading below its historical valuation. This analysis aligns with the GF Value™ assessment, reinforcing the notion that CDW is undervalued at its current price.

What Does CDW's GF Score™ Tell Us? The GF Score™ is a comprehensive measure that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. CDW's score of 83/100 highlights its solid fundamentals, with the strongest sub-ranks in profitability (8/10) and valuation (8/10), suggesting effective management of resources and a favorable price relative to its earnings. However, the company has a weaker financial strength rating (5/10), indicating some areas of potential risk.

Metric Rating GF Score™ 83/100 Financial Strength 5/10 Profitability 8/10 Growth 6/10 Valuation 8/10 Momentum 7/10 Overall, CDW's metrics suggest a strong position, particularly in profitability and valuation, while the financial strength could be an area of concern for potential investors. This mixed profile illustrates that while CDW is performing well in many aspects, there are still inherent risks that must be acknowledged.

What Are Gurus and Insiders Doing with CDW? Currently, 13 gurus hold CDW stock, with 8 adding to their positions and 7 trimming their investments in recent quarters. This suggests a divided sentiment among institutional investors, which can indicate both confidence and caution regarding the stock's future performance.

In terms of insider activity, the past 12 months saw insiders purchasing $2.5M worth of shares while selling $4.8M, resulting in a net selling of $2.3M. This pattern could imply that while insiders may see value in the stock, they are also taking profits or expressing caution about future performance. This mixed activity is noteworthy and should be considered when evaluating the stock.

What This Means for Investors Based on the analysis, CDW is currently deemed undervalued according to the GF Value™, presenting an opportunity for investors to consider. However, the mixed signals from insider activity and the financial strength rating suggest that potential investors should exercise caution and thoroughly evaluate their investment strategy. For a detailed analysis, visit the CDW Corp CDW stock page for more insights.

Frequently Asked Questions What is CDW's GF Score™?

CDW has a GF Score™ of 83/100, indicating strong fundamentals and growth potential.

Is CDW overvalued or undervalued?

CDW is currently undervalued, with a GF Value™ estimate of $215.32 compared to its current price of $164.62.

What is CDW's P/E ratio?

CDW's P/E ratio is 19.8x, which is below its 5-year median of 23.4x, suggesting it is trading at a lower valuation compared to its historical averages.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

ETOBICOKE, Ontario--(BUSINESS WIRE)--CDW Canada, a leading provider of end-to-end technology solutions and services for Canadian organizations, announced today that it has been recognized for the fifth consecutive year with the 2026 Canadian Partner of Excellence Award by Dell Technologies at the Toronto Technology Forum. The award recognizes CDW Canada's success helping customers cut through complexity and turn technology investments into business outcomes. “Our customers look to CDW to bring.

NorthCrest Asset Manangement LLC acquired a new stake in CDW Corporation (NASDAQ:CDW – Free Report) in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 96,481 shares of the information technology services provider’s stock, valued at approximately $12,365,000. NorthCrest Asset Manangement LLC owned approximately 0.08% of CDW at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of CDW. CX Institutional increased its position in shares of CDW by 4.0% in the third quarter. CX Institutional now owns 2,585 shares of the information technology services provider’s stock valued at $331,000 after buying an additional 99 shares in the last quarter. Versant Capital Management Inc boosted its position in shares of CDW by 26.3% in the 3rd quarter. Versant Capital Management Inc now owns 860 shares of the information technology services provider’s stock worth $110,000 after buying an additional 179 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its position in shares of CDW by 28.7% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 2,417 shares of the information technology services provider’s stock worth $340,000 after buying an additional 539 shares in the last quarter. Sequoia Financial Advisors LLC boosted its position in shares of CDW by 33.5% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 3,543 shares of the information technology services provider’s stock worth $498,000 after buying an additional 889 shares in the last quarter. Finally, Tidal Investments LLC grew its stake in CDW by 82.5% in the 2nd quarter. Tidal Investments LLC now owns 46,504 shares of the information technology services provider’s stock valued at $6,540,000 after acquiring an additional 21,019 shares during the last quarter. 93.15% of the stock is owned by hedge funds and other institutional investors.

Insider Activity In related news, insider Elizabeth Connelly sold 26,695 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $137.62, for a total value of $3,673,765.90. Following the completion of the sale, the insider directly owned 34,215 shares in the company, valued at approximately $4,708,668.30. The trade was a 43.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.82% of the stock is owned by company insiders.

CDW Stock Performance CDW stock opened at $143.76 on Tuesday. CDW Corporation has a fifty-two week low of $97.12 and a fifty-two week high of $161.10. The company has a market capitalization of $17.97 billion, a price-to-earnings ratio of 17.28, a PEG ratio of 1.86 and a beta of 0.95. The stock has a fifty day moving average of $142.01 and a two-hundred day moving average of $132.99. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.05 and a current ratio of 1.17. CDW (NASDAQ:CDW – Get Free Report) last released its earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.80 by $0.11. The company had revenue of $6.57 billion for the quarter, compared to analyst estimates of $6.21 billion. CDW had a net margin of 4.60% and a return on equity of 50.61%. The firm’s quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the prior year, the firm earned $2.60 EPS. On average, analysts anticipate that CDW Corporation will post 10.33 EPS for the current fiscal year.

CDW Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a dividend of $0.63 per share. The ex-dividend date was Tuesday, August 25th. This represents a $2.52 annualized dividend and a dividend yield of 1.8%. CDW’s dividend payout ratio (DPR) is 30.29%.

Wall Street Analyst Weigh In Several equities analysts have weighed in on CDW shares. Citigroup raised 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. Barclays reduced their price target on shares of CDW from $150.00 to $148.00 and set an “equal weight” rating on the stock in a report on Monday, September 21st. Morgan Stanley upped their price target on shares of CDW from $170.00 to $171.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Finally, Weiss Ratings upgraded shares of CDW from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $150.12.

Check Out Our Latest Stock Analysis on CDW

CDW Profile (Free Report)

CDW Corporation (NASDAQ: CDW) is a provider of technology products and services for businesses, government agencies, educational institutions and healthcare organizations. The company helps customers plan, acquire, implement and manage information technology through a broad portfolio of hardware, software and cloud-based solutions.

Its offerings include computers, servers, networking equipment, data storage, cybersecurity products, collaboration tools and software. CDW also provides professional and managed services, including cloud adoption, data center modernization, security, virtualization, configuration, technical support and lifecycle management.

Founded in 1984 as Computer Discount Warehouse, the company is headquartered in Vernon Hills, Illinois.

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Key Takeaways CDW expects operating leverage and expense efficiency to improve sequentially through the second half.Gross margin fell 70 basis points as hardware infrastructure and enterprise orders gained mix.CDW expects services demand to strengthen as infrastructure projects move into implementation. CDW Corporation (CDW - Free Report) has entered the second half of 2026 with a focus on improving operating leverage and expense efficiency after delivering solid second-quarter results. The company reported second-quarter net sales of $6.6 billion, up 10% year over year, while gross profit increased 6% to $1.3 billion. Non-GAAP operating income rose 7% to $556 million, and non-GAAP earnings per share increased 12% to $2.91. However, gross margin declined 70 basis points (bps) year over year to 20.1%, reflecting a greater contribution from large hardware infrastructure opportunities related to modernization and AI readiness, particularly among enterprise customers, along with a lower relative contribution from services.

On the last earnings call, management highlighted that the gross-margin pressure was primarily a function of business mix rather than like-for-like pricing pressure. CDW maintained pricing discipline and continued to pass through price increases, while the growing mix of infrastructure products, larger-dollar orders and enterprise customers carried relatively lower margins. At the same time, netted-down revenue streams increased 16.1% and accounted for 35.9% of gross profit, up 300 bps year over year. Services grew only 1% as customers prioritized hardware and cloud investments and deployment timing affected demand, although CDW expects life-cycle and professional services activity to increase as customers move from procurement toward implementation and management.

The second half is expected to bring greater benefits from CDW’s Geared for Growth initiatives. Second-quarter non-GAAP SG&A represented 57.9% of gross profit, down 20 bps year over year and 410 bps sequentially. Management said the second-quarter improvement in operating leverage largely reflected expense discipline and broader efficiency measures, while the more significant benefits from Geared for Growth are expected to emerge in the back half. The company expects both operating leverage and its expense ratio to improve sequentially through the second half and into 2027.

For 2026, CDW expects gross profit to grow in the mid-single digits, although second-half gross margins are projected to remain below year-ago levels because of product and end-market mix. Third-quarter non-GAAP SG&A is expected to decline sequentially, helping reduce operating expenses as a percentage of gross profit both year over year and sequentially. Management also expects services demand to strengthen as current infrastructure projects progress into implementation, supporting its expectation for improving operating leverage during the second half.

Taking a Look at CDW’s CompetitorsServiceNow, Inc.’s (NOW - Free Report) margins remain under pressure as rising AI adoption and greater reliance on hyperscaler infrastructure increase costs. In the second quarter of 2026, non-GAAP total gross margin declined to 78% from 81% a year earlier, while subscription gross margin fell 250 bps to 80.5%. Despite the pressure, non-GAAP operating margin remained stable at 29.5%, supported by revenue outperformance and disciplined spending. For 2026, ServiceNow continues to target an 81% non-GAAP subscription gross margin and 31.5% operating margin. Management expects AI-driven efficiencies, including roughly $500 million in internal savings, to help offset infrastructure and integration-related margin pressures.

Accenture plc’s (ACN - Free Report) margins remained relatively stable in the third quarter of fiscal 2026, despite ongoing investments in AI, talent and acquisitions. Gross margin was 32.8%, slightly below 32.9% in the year-ago quarter, reflecting continued cost pressures from its labor-intensive delivery model and evolving AI-led services. However, operating income increased 6% year over year to $3.18 billion, while operating margin expanded 20 bps to 17% from 16.8%. SG&A expenses declined to 15.8% of revenues from 16%. Strong Managed Services growth and disciplined cost management supported profitability, although AI-driven delivery changes and higher acquisition spending could influence margins going forward.

Avnet, Inc.’s (AVT - Free Report) margin profile is improving as higher volumes, favorable mix and operating leverage support profitability. Adjusted operating margin expanded to 3.8% in the fourth quarter of fiscal 2026, up 73 bps sequentially and 129 bps year over year. Electronic Components margin reached 4.1%, while Farnell’s margin rose to 9% from 4.3% a year earlier, supported by a higher mix of on-board components. Management expects Farnell to reach double-digit margins before the end of fiscal 2027 and consolidated SG&A as a percentage of gross profit to fall below 60%. However, gross margin remains sensitive to regional mix and pricing dynamics.

CDW (NASDAQ:CDW – Get Free Report) and AmpliTech Group (NASDAQ:AMPG – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Earnings and Valuation This table compares CDW and AmpliTech Group”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio CDW $22.42 billion 0.73 $1.07 billion $8.32 15.66 AmpliTech Group $25.20 million 3.75 -$7.01 million ($0.34) -9.26 CDW has higher revenue and earnings than AmpliTech Group. AmpliTech Group is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks. Volatility & Risk CDW has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, AmpliTech Group has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500.

Analyst Recommendations This is a breakdown of recent ratings and recommmendations for CDW and AmpliTech Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score CDW 0 3 5 1 2.78 AmpliTech Group 1 0 1 0 2.00 CDW currently has a consensus target price of $150.12, indicating a potential upside of 15.19%. AmpliTech Group has a consensus target price of $7.00, indicating a potential upside of 122.22%. Given AmpliTech Group’s higher possible upside, analysts plainly believe AmpliTech Group is more favorable than CDW.

Institutional and Insider Ownership 93.2% of CDW shares are held by institutional investors. Comparatively, 11.0% of AmpliTech Group shares are held by institutional investors. 0.8% of CDW shares are held by insiders. Comparatively, 17.1% of AmpliTech Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability This table compares CDW and AmpliTech Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets CDW 4.60% 50.61% 7.91% AmpliTech Group -33.37% -19.55% -14.76% Summary CDW beats AmpliTech Group on 12 of the 15 factors compared between the two stocks.

About CDW (Get Free Report)

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.

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AmpliTech Group, Inc. designs, engineers, and assembles micro-wave component-based amplifiers. The company’s products include radio frequency (RF) amplifiers and related subsystems, such as low noise amplifiers for use in receivers of various communication systems comprising Wi-Fi, radar, satellite, base station, cell phone, radio, etc.; and medium power amplifiers that provide enhanced output power and gain in transceiver chains. It provides specialty microwave block downconverters used as a test device on satellite access point antennas; specialty microwave 1:2 Tx protection switch panels that is used in satellite communication earth stations; desktop/benchtop and compact wideband power amplifiers used in SATCOM rack mount systems, as well as test equipment used in integrators and manufacturers of various communications systems, such as cellular base stations, simulators, and point to point wireless radios; and waveguide to coaxial adapters for SATCOM and satellite internet gateway systems. In addition, the company offers cryogenic amplifiers for quantum computing, medical, RF imaging, research and development, space communications, accelerators, radiometry, and telephony applications; and cryogenic and non-cryogenic 4g/5g small cell subsystems for high-speed networks and airline Wi-Fi systems. Further, it provides custom assembly designs and non-recurring engineering services on a project-by-project basis, as well as IC packaging and lids products. The company serves aerospace, government, defense, commercial satellite, and wireless industries through sales representatives and distributors in the United States, Europe, the Middle East, and South Asia. AmpliTech Group, Inc. was founded in 2002 and is based in Hauppauge, New York.

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VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW (Nasdaq: CDW), the strategic end-to-end technology partner that turns customer ambition into outcomes, today announced that it has completed its previously announced acquisition of Lovelytics, a leading data and AI services firm and a member of the Databricks Brickbuilder Partner Network. The acquisition expands CDW's Services & Solutions portfolio and will bring the Lovelytics capabilities to a broader set of customers. Lovelytics helps organization.

ETOBICOKE, Ontario--(BUSINESS WIRE)--Today, CDW Canada, the strategic end-to-end technology partner that turns customer ambition into outcomes, released new research exploring how Canadian organizations are moving from artificial intelligence (AI) deployment to realizing business value. The report, Canada's AI Workplace Evolution from Adoption to Accountability, draws on a survey conducted by Earnscliffe on behalf of CDW Canada of 1,011 Canadian office workers across organizations of varying si.

CDW (NASDAQ:CDW – Get Free Report) and Kimball Electronics (NASDAQ:KE – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability This table compares CDW and Kimball Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets CDW 4.60% 50.61% 7.91% Kimball Electronics 1.95% 4.41% 2.35% Risk & Volatility CDW has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Valuation & Earnings This table compares CDW and Kimball Electronics”s top-line revenue, earnings per share and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio CDW $22.42 billion 0.85 $1.07 billion $8.32 18.23 Kimball Electronics $1.43 billion 0.40 $27.96 million $1.13 21.19 CDW has higher revenue and earnings than Kimball Electronics. CDW is trading at a lower price-to-earnings ratio than Kimball Electronics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings This is a breakdown of current recommendations for CDW and Kimball Electronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score CDW 0 3 5 1 2.78 Kimball Electronics 0 2 2 1 2.80 CDW presently has a consensus target price of $150.38, indicating a potential downside of 0.87%. Kimball Electronics has a consensus target price of $32.00, indicating a potential upside of 33.61%. Given Kimball Electronics’ stronger consensus rating and higher probable upside, analysts clearly believe Kimball Electronics is more favorable than CDW.

Insider & Institutional Ownership 93.2% of CDW shares are held by institutional investors. Comparatively, 76.0% of Kimball Electronics shares are held by institutional investors. 0.8% of CDW shares are held by insiders. Comparatively, 2.8% of Kimball Electronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary CDW beats Kimball Electronics on 9 of the 14 factors compared between the two stocks.

About CDW (Get Free Report)

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.

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Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

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Amundi decreased its holdings in CDW Corporation (NASDAQ:CDW – Free Report) by 49.0% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 270,264 shares of the information technology services provider’s stock after selling 259,463 shares during the period. Amundi owned about 0.22% of CDW worth $38,010,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also made changes to their positions in CDW. Hollencrest Capital Management increased its position in shares of CDW by 909.1% during the first quarter. Hollencrest Capital Management now owns 222 shares of the information technology services provider’s stock worth $27,000 after acquiring an additional 200 shares during the period. Allied Private Wealth LLC purchased a new stake in shares of CDW in the second quarter valued at approximately $28,000. Keating Financial Advisory Services Inc. purchased a new stake in shares of CDW in the 2nd quarter worth $28,000. Root Financial Partners LLC lifted its stake in CDW by 54.7% in the first quarter. Root Financial Partners LLC now owns 263 shares of the information technology services provider’s stock worth $32,000 after acquiring an additional 93 shares during the period. Finally, Continuum Advisory LLC bought a new position in shares of CDW during the second quarter valued at approximately $43,000. 93.15% of the stock is currently owned by institutional investors.

Insider Buying and Selling at CDW In other news, insider Elizabeth Connelly sold 26,695 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $137.62, for a total value of $3,673,765.90. Following the sale, the insider owned 34,215 shares in the company, valued at $4,708,668.30. This represents a 43.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.82% of the stock is owned by insiders.

CDW Stock Up 0.2% CDW stock opened at $142.60 on Friday. The company has a quick ratio of 1.05, a current ratio of 1.17 and a debt-to-equity ratio of 1.97. CDW Corporation has a 52 week low of $97.12 and a 52 week high of $171.55. The stock has a market capitalization of $17.83 billion, a PE ratio of 17.14, a price-to-earnings-growth ratio of 1.87 and a beta of 0.95. The firm has a 50 day moving average of $140.55 and a 200 day moving average of $129.84. CDW (NASDAQ:CDW – Get Free Report) last issued its earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.80 by $0.11. CDW had a return on equity of 50.61% and a net margin of 4.60%.The company had revenue of $6.57 billion during the quarter, compared to analyst estimates of $6.21 billion. During the same quarter last year, the business posted $2.60 EPS. The firm’s quarterly revenue was up 10.0% on a year-over-year basis. Sell-side analysts forecast that CDW Corporation will post 10.33 earnings per share for the current year.

CDW Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend was Tuesday, August 25th. CDW’s dividend payout ratio is 30.29%.

Wall Street Analyst Weigh In A number of brokerages recently weighed in on CDW. JPMorgan Chase & Co. raised CDW from a “neutral” rating to an “overweight” rating and set a $130.00 price objective on the stock in a research report on Wednesday, May 27th. Weiss Ratings raised shares of CDW from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 25th. Citigroup increased their price target on shares of CDW from $123.00 to $145.00 and gave the company a “neutral” rating in a research report on Monday, July 13th. Barclays raised their price target on shares of CDW from $123.00 to $150.00 and gave the company an “equal weight” rating in a report on Tuesday. Finally, Morgan Stanley lifted their price objective on shares of CDW from $170.00 to $171.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, CDW currently has a consensus rating of “Moderate Buy” and an average target price of $150.38.

Read Our Latest Stock Report on CDW

CDW Profile (Free Report)

CDW Corporation (NASDAQ: CDW) is a provider of technology products and services for businesses, government agencies, educational institutions and healthcare organizations. The company helps customers design, acquire, configure and manage information technology environments.

Its offerings include computers, servers, networking equipment, software, data storage, cybersecurity products, cloud solutions and collaboration tools. CDW also provides professional, managed and lifecycle services, including solution design, implementation, security support, cloud management and IT asset management.

Founded in 1984, CDW serves customers primarily in the United States, Canada and the United Kingdom through a combination of sales specialists, technology partners and digital commerce platforms.

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On September 08, 2026, CDW Corp CDW shares fell by 5.2%, bringing the current price to $144.48. The stock has experienced a 52-week range between $97.12 and $171.55, reflecting significant volatility. This decline in share price highlights a critical moment for investors to assess the company’s valuation.

GF Value™ verdict: Currently trading at $144.48, CDW is estimated to be 31.9% undervalued compared to the $212.24 fair value.GF Score™: With a score of 81/100, CDW is classified as a strong investment based on GuruFocus's proprietary methodology.Most notable signal: The stock has a momentum rank of 8/10, indicating positive market trends despite recent price drops.Is CDW Overvalued or Undervalued?CDW is currently trading at a price of $144.48, which is significantly below the GF Value™ estimate of $212.24. This represents a margin of safety of 31.9%, indicating that the stock may offer a substantial upside for long-term investors. The GF Value™ is GuruFocus' proprietary intrinsic-value measure, calculated from a blend of historical trading multiples, past business performance, and future growth projections. The GF Valuation label categorizes CDW as significantly undervalued, suggesting that its current market price does not reflect its underlying business fundamentals.

Given the current pricing, CDW presents an attractive opportunity for value-oriented investors, albeit with the caveat of recent performance trends and market conditions that warrant close attention. Investors should consider the potential for recovery alongside the inherent risks associated with market volatility.

How Does CDW's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)17.4x23.6x (5-Year Median)Forward P/E12.1xN/ACDW's current P/E ratio of 17.4x is 26% below its 5-year median of 23.6x, indicating that the stock is trading at a lower valuation compared to its historical norms. This analysis aligns with the GF Value™ verdict, reinforcing the notion that CDW is undervalued relative to its historical performance metrics.

What Does CDW's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a stock's potential based on multiple factors such as financial strength, profitability, growth, valuation, and momentum. CDW's GF Score™ of 81/100 is indicative of a strong investment proposition, with the highest scores in profitability (8/10) and momentum (8/10). However, the valuation rank is lower at 4/10, reflecting concerns over the current market perception relative to its intrinsic value.

MetricRatingGF Score™81/100Financial Strength5/10Profitability8/10Growth7/10Valuation4/10Momentum8/10The overall scores suggest that while CDW demonstrates strong profitability and momentum, its financial strength and valuation are areas that require attention. The disparity between the high profitability rank and lower valuation rank may indicate that the market is currently undervaluing the company’s potential.

What Are Gurus and Insiders Doing with CDW?Currently, 13 gurus hold positions in CDW, with 8 adding to their stakes while 7 have trimmed their positions in recent quarters. This mixed activity reflects a cautious but generally positive sentiment among investment professionals regarding CDW's future prospects.

In terms of insider activity, over the past 12 months, insiders have bought $2.5 million worth of shares while selling $4.8 million, resulting in net selling of $2.3 million. This pattern may suggest some level of concern or a need for liquidity among insiders, which investors should consider when evaluating the stock's prospects. However, the fact that there are more buyers than sellers among gurus indicates confidence in the company’s future performance, despite recent price declines.

What This Means for InvestorsBased on the current analysis, CDW is considered significantly undervalued according to GF Value™, presenting an opportunity for investors seeking value in the market. However, the mixed signals from insider activities and guru ownership should be taken into account, emphasizing the need for thorough evaluation before making investment decisions. For further information and insights on CDW Corp, visit the CDW Corp CDW stock page.

Frequently Asked QuestionsWhat is CDW's GF Score™?

CDW has a GF Score™ of 81/100, indicating a strong investment potential based on various financial metrics.

Is CDW overvalued or undervalued?

CDW is currently undervalued, with a GF Value™ estimate of $212.24 compared to its current trading price of $144.48.

What is CDW's P/E ratio?

The current P/E ratio for CDW is 17.4x, which is significantly below its 5-year median P/E of 23.6x.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW (Nasdaq: CDW), the leading end-to-end technology partner that turns customer ambition into outcomes, today announced plans to acquire leading data and AI services firm Lovelytics, a member of the Databricks Brickbuilder Partner Network. The acquisition expands CDW's Data & Analytics Practice, helping customers build the data foundations needed to make better decisions, improve efficiency and put AI to work. As demand for AI grows, organizations are i.

VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW Corporation (Nasdaq: CDW) today announced that Christine A. Leahy, chair and chief executive officer, and Albert J. Miralles, chief financial officer and executive vice president, enterprise business operations, CDW, will participate in a question and answer session at the Citi Global TMT Conference to be held in New York City on Tuesday, September 8, 2026, at 9:50am CT / 10:50am ET. The presentation will be webcast live on investor.CDW.com. An archived.

B. Metzler seel. Sohn & Co. AG bought a new position in CDW Corporation (NASDAQ:CDW – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 45,306 shares of the information technology services provider’s stock, valued at approximately $6,372,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in shares of CDW in the 2nd quarter worth approximately $2,143,082,000. Pzena Investment Management LLC bought a new position in shares of CDW during the 2nd quarter valued at approximately $371,135,000. Deutsche Bank AG bought a new stake in shares of CDW during the 2nd quarter worth approximately $112,488,000. Pacer Advisors Inc. lifted its holdings in CDW by 5,081.1% during the 1st quarter. Pacer Advisors Inc. now owns 549,247 shares of the information technology services provider’s stock valued at $66,470,000 after buying an additional 538,646 shares in the last quarter. Finally, Marshall Wace LLP increased its holdings in CDW by 255.7% during the 3rd quarter. Marshall Wace LLP now owns 599,248 shares of the information technology services provider’s stock worth $95,448,000 after purchasing an additional 430,796 shares during the period. Institutional investors own 93.15% of the company’s stock.

CDW Trading Up 2.8% CDW stock opened at $137.25 on Friday. CDW Corporation has a 1 year low of $97.12 and a 1 year high of $171.55. The firm has a market cap of $17.16 billion, a price-to-earnings ratio of 16.50, a price-to-earnings-growth ratio of 1.76 and a beta of 0.96. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.05 and a current ratio of 1.17. The firm’s 50 day moving average price is $136.37 and its two-hundred day moving average price is $128.40.

CDW (NASDAQ:CDW – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share for the quarter, topping analysts’ consensus estimates of $2.80 by $0.11. The firm had revenue of $6.57 billion for the quarter, compared to analysts’ expectations of $6.21 billion. CDW had a return on equity of 50.61% and a net margin of 4.60%.CDW’s revenue was up 10.0% on a year-over-year basis. During the same quarter last year, the business posted $2.60 EPS. On average, research analysts predict that CDW Corporation will post 10.28 EPS for the current fiscal year. CDW Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th will be paid a $0.63 dividend. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.8%. CDW’s dividend payout ratio is 30.29%.

Insider Activity at CDW In related news, insider Elizabeth H. Connelly sold 26,695 shares of the business’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the transaction, the insider owned 34,215 shares of the company’s stock, valued at approximately $4,708,668.30. The trade was a 43.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director David W. Nelms acquired 18,000 shares of the business’s stock in a transaction dated Wednesday, May 27th. The shares were bought at an average cost of $111.43 per share, with a total value of $2,005,740.00. Following the transaction, the director directly owned 51,025 shares of the company’s stock, valued at $5,685,715.75. The trade was a 54.50% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.82% of the company’s stock.

Analyst Upgrades and Downgrades A number of research firms have weighed in on CDW. Royal Bank Of Canada raised shares of CDW to an “outperform” rating and set a $130.00 price objective for the company in a report on Wednesday, May 27th. Raymond James Financial set a $150.00 price objective on CDW in a research report on Wednesday, May 6th. Barclays lowered their target price on shares of CDW from $144.00 to $123.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 7th. Morgan Stanley lifted their target price on CDW from $170.00 to $171.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th. Finally, UBS Group reduced their target price on CDW from $162.00 to $147.00 and set a “buy” rating on the stock in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $147.00.

Get Our Latest Stock Analysis on CDW

About CDW (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.

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Key Takeaways CDW's sales rose 10% to $6.57 billion, while adjusted EPS climbed 12% to $2.91.Demand grew across storage, servers, devices, software and networking amid digital and AI spending.International sales jumped 22.9%, while gross margin slipped to 20.1% on a hardware-heavy mix. CDW Corporation (CDW - Free Report) reported second-quarter 2026 non-GAAP earnings per share (EPS) of $2.91, beating the Zacks Consensus Estimate of $2.80. The bottom line increased approximately 12% year over year.

CDW generated quarterly net sales of $6.57 billion, representing a 10% year-over-year increase. On a constant currency (cc) basis, revenue increased 9.9%, indicating that growth was primarily driven by stronger customer demand rather than favorable foreign exchange movements. Increased investments across several technology categories, including data storage solutions, enterprise servers, notebooks, mobile devices, software and networking and communications products, led to top-line expansion. These categories continue to benefit from enterprise digital transformation initiatives, hybrid work environments, cybersecurity upgrades and expanding AI infrastructure requirements. The consensus estimate was pinned at $6.26 billion.

As organizations move beyond experimenting with AI and start implementing production-scale AI solutions, CDW seems well-positioned to benefit from this shift. CDW expects to outperform the overall U.S. IT market by 200-300 basis points at cc over the long term despite ongoing macroeconomic uncertainties. Management believes several structural trends like infrastructure modernization, cloud migration, AI adoption, increasing cybersecurity investments, growing technology complexity and digital workplace transformation will keep supporting demand. As enterprise environments grow more sophisticated, customers increasingly seek strategic partners capable of delivering comprehensive technology solutions rather than just individual products.

Separately, the company announced a quarterly dividend of 63 cents, payable on Sept. 10, 2026, to shareholders on record as of Aug. 25.

Image Source: Zacks Investment Research

In the past three months, CDW's shares have gained 41.3% compared with the Zacks Computers-IT Services industry’s rise of 3.6%.

Segmental DetailsThe Commercial segment continued to be CDW's largest contributor, generating $3.97 billion in sales, an increase of 9.2%. Growth was broad-based across several industries under Commercial. Corporate customers increased spending by 10.7%, Healthcare customers grew 9.1% and Financial Services customers expanded purchases by 1.8%.

Government sales reached $848 million, increasing 13.6% year over year, reflecting continued investments by public sector organizations in technology modernization.

The Education segment remained relatively stable with 0.7% growth, generating $933 million in revenue.

International operations performed exceptionally well. Net sales in Other (the U.K. and Canadian operations) generated $826 million in sales, growing 22.9%, making international markets one of the strongest contributors during the quarter.

Profitability Improves Despite Margin PressureGross profit increased 6.3% year over year to $1.32 billion. However, gross margin declined slightly from 20.8% to 20.1%. Management attributed the lower margin primarily to a higher sales mix toward lower-margin hardware and margin pressure in selected hardware categories. These factors were partially offset by higher contributions from netted-down revenue. Although gross margin contracted modestly, the company continued expanding earnings through disciplined cost management and operating efficiency.

Non-GAAP operating income increased 7% year over year to $556 million. The non-GAAP operating margin fell to 8.5% from 8.7%.

Selling and administrative expenses rose 8.6% to $891 million, primarily due to higher employee compensation, increased performance-based incentives and workplace optimization initiatives.

Balance Sheet & Cash FlowAs of June 30, 2026, CDW had $361.8 million of cash and cash equivalents compared with $578.6 million as of March 31.

The company had a long-term debt of $5.82 billion compared with $5.64 billion as of March 31, 2026.

For the six months that ended June 30, 2026, CDW generated $219.7 million of cash flow from operating activities compared with $443.1 million a year ago.

Adjusted free cash flow totaled $278.4 million.

CDW’s Zacks RankCDW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other FirmsWix.com Ltd. (WIX - Free Report) reported second-quarter 2026 non-GAAP earnings of $1.39 per share, down 39% year over year but above the Zacks Consensus Estimate of $1.13. Revenues rose 15% year over year to $563.1 million and beat the consensus mark of $554 million. Growth reflected strong Base44 performance and continued core Wix expansion.

Cadence Design Systems (CDNS - Free Report) , a well-known player in the electronic design automation (EDA) space, recently reported strong second-quarter 2026 results with a record backlog that underscores sustained demand for its solutions. Revenues of $1.584 billion beat the Zacks Consensus Estimate by 0.5% and increased 24.2% year over year. The figure was within the management’s guided range of $1.555-$1.595 billion. All the product groups witnessed double-digit growth. Non-GAAP EPS of $2.11 beat the Zacks Consensus Estimate by 2.9%, increased 27.9% year over year.

TELUS Corporation (TU - Free Report) reported second-quarter 2026 adjusted earnings per share of C$0.16, down 27% from C$0.22 a year ago. Adjusted net income fell 26% to C$254 million, while operating revenues and other income declined 3% to C$4,929 million, pressured by weaker TELUS Digital results, lower mobile equipment revenues and reduced other income.

Aug 5 (Reuters) - CDW (CDW.O), opens new tab reported second-quarter gross profit margin below Wall Street estimates ​on Wednesday, offsetting stronger-than-expected revenue ‌and sending the IT solutions provider's shares down 14% in premarket trading.

The Vernon ​Hills, Illinois-based company also said ​its CFO Albert Miralles will retire ⁠from the role next year.

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CDW ​reported net sales of $6.57 billion in ​the second quarter, beating estimates of $6.21 billion, according to data compiled by LSEG.

Adjusted profit ​of $2.91 per share also topped ​estimates of $2.80.

Enterprise technology spending has remained resilient ‌as ⁠companies invest in AI infrastructure, cloud computing and data center upgrades, benefiting firms such as CDW.

Gross profit ​margin for ​the ⁠quarter came in at 20.1%, below estimates of 21.2%, ​primarily due to a sales ​mix ⁠shift toward lower-margin hardware products.

Revenue from its commercial segment, which includes ⁠financial ​and healthcare services, grew ​9.2% in the quarter.

Reporting by Harshita Mary Varghese ​in Bengaluru; Editing by Vijay Kishore

Our Standards: The Thomson Reuters Trust Principles., opens new tab

5 Ways to Play Retail that will Profit in 2023CDW NASDAQ: CDW reported record second-quarter results for 2026, as demand for infrastructure modernization, artificial intelligence readiness and security helped lift net sales 10% to $6.6 billion.

The technology solutions provider said gross profit increased 6% to $1.3 billion, while non-GAAP operating income rose 7% to $556 million. Non-GAAP earnings per diluted share climbed 12% to $2.91. Chief Executive Officer Chris Leahy said net sales, gross profit and non-GAAP EPS each established all-time quarterly records.

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Retail Theft Rises: Two Ways For Investors To Beat Shrinkage“Demand remained healthy with AI increasingly influencing customer activity despite cautious and deliberate customer spending,” Leahy said, pointing to customer investments in AI readiness and modernization as drivers of infrastructure demand.

Segment and Product Demand Commercial net sales rose 9%, including an 11% increase in corporate sales, which CDW attributed to infrastructure modernization, cloud and AI-readiness programs. Healthcare sales grew 9%, supported by demand for uses including AI-enabled claims management and clinical documentation, while financial-services sales increased 2%.

Government sales increased about 14%, aided by improving federal demand and continued state and local momentum. Education sales rose about 1%, as healthy K-12 demand for software, services and lifecycle offerings offset a constrained funding environment in higher education.

International sales increased about 23%, led by a record quarter in Canada and continued momentum in the United Kingdom. Both markets delivered mid-teens or better growth in their local markets, according to the company.

Hardware revenue increased 10%, with server, storage and networking posting double-digit growth. Combined notebook and desktop revenue rose 10%, as higher average selling prices more than offset lower unit volume. Software rose by the low double digits, driven by security, application suites, and storage and network-area-management software. Services revenue increased 1%, reflecting customers’ near-term emphasis on hardware and cloud investments as well as deployment timing. Leahy said CDW expects lifecycle and professional-services demand to increase as customers transition from procurement to implementation and ongoing management of technology projects.

AI Opportunities and Margin Mix Management described AI as a broad, multiyear opportunity rather than a single-product cycle. Leahy said the company is seeing AI-related opportunities across infrastructure, security, data integration and lifecycle support as customers move from experimentation and pilots toward implementation and scale.

She said the initial infrastructure phase of AI adoption has been most advanced among larger customers, but activity is broadening across industries and customer sizes. CDW is developing repeatable AI offerings for mid-market and smaller customers, according to Leahy.

The company cited a multiyear, multimillion-dollar engagement with a western state’s technology office, where CDW is helping create a framework for AI strategy, governance, infrastructure, security, data and application development. It also highlighted a multimillion-dollar AI security vulnerability-management engagement with a large financial-services customer.

Chief Financial Officer Al Morales said second-quarter gross margin declined 70 basis points year over year to 20.1%, primarily because of product and customer mix rather than like-for-like pricing pressure. Larger infrastructure orders and enterprise customers tend to carry somewhat lower margins, he said, while services mix was also lower during the quarter.

Morales said CDW maintained pricing discipline and passed through cost increases in its core business. Netted-down revenue streams increased 16.1% and represented 35.9% of gross profit, up 300 basis points from a year earlier.

Operating Leverage, Cash Flow and Capital Returns Non-GAAP selling, general and administrative expense totaled $764 million, or 57.9% of gross profit, down 20 basis points from the prior year. Morales said the operating-income growth rate exceeded gross-profit growth because of expense discipline and efficiency efforts.

He said benefits from the company’s “Geared for Growth” initiative are expected to become more apparent in the second half of 2026 and continue into 2027. CDW ended the quarter with approximately 14,700 coworkers, including 10,300 customer-facing employees, both modestly lower than a year earlier.

Adjusted free cash flow for the first half was $278 million, or 42% of non-GAAP net income, below the company’s typical target of converting 80% to 90% of non-GAAP net income to cash. Morales attributed the shortfall largely to working-capital investment, including an approximately $400 million increase in inventory since the end of 2025. He said the company expects cash conversion to normalize during the remainder of the year as inventory is rationalized.

During the quarter, CDW returned $344 million through share repurchases and $80 million through dividends. The company had more than $1.1 billion remaining under its repurchase authorization after announcing an additional $1 billion authorization in the second quarter. Net debt stood at $5.5 billion, and net leverage was 2.5 times, within CDW’s target range of two to three times.

Raised Full-Year Outlook and CFO Transition CDW raised its 2026 outlook, now expecting the U.S. IT addressable market to grow at a mid-single-digit rate on a customer-spend basis. The company expects to outperform that market by 200 to 300 basis points.

For the full year, CDW expects gross profit to grow at a mid-single-digit rate and non-GAAP EPS growth to reach the high end of the high-single-digit range. It expects second-half gross margins to remain below second-half 2025 levels due to anticipated product and end-market mix, leaving full-year gross margin modestly below 2025.

For the third quarter, management projected mid-single-digit gross-profit growth, lower non-GAAP SG&A than in the second quarter, and non-GAAP EPS growth at the high end of the high-single-digit range.

Separately, Leahy announced that Morales plans to retire in 2027 following an orderly transition. Morales will remain CFO until a successor is appointed and then serve in an advisory capacity. The company said its search for a successor is underway.

About CDW (NASDAQ:CDW)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Reinforces Ongoing Commitment to Delivering Value to Stockholders

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 September 10, 2026, to all stockholders of record as of the close of business on August 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. "Since our IPO in June 2013, our dividend has increased nearly fifteen-fold, with twelve consecutive years of increases, and we have returned approximately $8.8 billion to stockholders through share repurchases and dividends. Our capital allocation strategy has enabled us to deliver value to our stockholders, just as we have delivered value to our customers and partners for over 40 years."

Future dividends and share repurchase authorizations will be at the discretion of and subject to approval by CDW's Board of Directors. The payment of any future dividends will be at the discretion of our Board of Directors and will depend upon our results of operations, financial condition, business prospects, capital requirements, contractual restrictions (including in current or future agreements governing our indebtedness), restrictions imposed by applicable law, tax considerations, and other factors that our Board of Directors deems relevant. Share repurchases under the program will be made from time to time in private transactions, open market purchases, or other transactions as permitted by securities laws and other legal requirements. The timing and amounts of any purchases will be based on market conditions and other factors including but not limited to price, regulatory requirements, and capital availability. The program does not require the purchase of any minimum dollar amount or number of shares and the program may be modified, suspended, or discontinued at any time. As of June 30, 2026, the Company has approximately $1,138 million remaining under the program.

About CDW

CDW Corporation (Nasdaq: CDW) is a leading multi-brand provider of information technology solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. CDW helps its customers to navigate an increasingly complex IT market and maximize return on their technology investments. For more information about CDW, please visit www.CDW.com.

Forward-Looking Statements

Statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future dividends, share repurchases, earnings growth, capital allocation, leverage ratio, stockholder returns, and other strategic plans of CDW. These forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW believes that its plans, intentions, and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions, or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Forward-Looking Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K for the year ended December 31, 2025, and in CDW's subsequent filings with the Securities and Exchange Commission. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

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Key Takeaways CDW is set to report Q2 results Aug. 5, with management expecting high single-digit non-GAAP EPS growth.CDW expects AI-driven infrastructure demand, backlog and customer activity to support quarterly performance.CDW sees stronger second-half momentum from services, while hardware shipment delays keep backlog high. CDW Corporation (CDW - Free Report) is scheduled to release second-quarter 2026 results before market open on Aug. 5.

The Zacks Consensus Estimate for revenues is set at $6.3 billion, representing a 4.7% increase from the prior-year quarter. 

The consensus estimate for earnings is pegged at $2.80 per share, up 1.3% in the past 60 days, indicating a 7.7% increase from the year-ago quarter’s reported figure. Management expects second-quarter non-GAAP net income per share to be in the high single digits year over year.

CDW’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 3.3%.

Key Factors Investors Should Watch for CDW’s Q2 EarningsCDW’s second-quarter performance is expected to have been driven by customer demand across corporate, government, education and healthcare markets, as well as the company's ability to capitalize on AI-driven infrastructure investment, despite ongoing macroeconomic uncertainty. AI continues to reshape enterprise technology investments. Companies are increasingly deploying AI-ready servers, high-performance storage, networking equipment and data center infrastructure. CDW, with its broad portfolio of hardware, software and IT services, is well-positioned to benefit from this trend.

The company expects strong performance in the to-be-reported quarter and beyond, driven by backlog and customer activity. Supply chain and demand uncertainties remain, but the outlook is cautiously optimistic with a focus on quarterly results. CDW expects second-quarter non-GAAP SG&A expenses to be modestly higher sequentially. However, operating expenses as a percentage of gross profit are projected to decline sequentially due to seasonal factors and remain broadly in line with the year-ago second quarter.

Government, education, commercial, international and healthcare customers account for a lion’s share of CDW's revenue. First-quarter results demonstrated this diversification, with commercial growth of nearly 10%, government growth of almost 5%, education growth of 3% and international growth of 17.9%. Corporate, healthcare and financial services customers all contributed to commercial expansion, while double-digit growth in state and local government offset weakness in federal spending. K-12 demand remained healthy despite difficult comparisons, and both the U.K. and Canada delivered double-digit growth.

For the second quarter, we expect revenues from Total Commercial, Government and Education to be $3.9 billion, $685 million and $916.7 million, respectively. Revenues from the International part are estimated to be $627 million, down 6.7%.

The company anticipates a more balanced demand environment in the second half, with no significant demand destruction expected. CDW expects netted-down revenues, along with professional and managed services, to gain momentum in the second half of 2026 and continue to outpace overall business growth in the long term. Hardware shipment delays keep backlog elevated. Meanwhile, higher-value AI deals and expanding professional and managed services are expected to support recurring revenue and drive margin expansion over time.

Management remains committed to maintaining leverage within its targeted 2X-3X range while evaluating acquisition opportunities aligned with its growth strategy. In addition, Geared for Growth initiatives are expected to begin contributing productivity benefits in the second half of 2026. In May, the board authorized an additional $1 billion for share repurchases, increasing its total remaining buyback capacity to approximately $1.48 billion from the amount remaining as of March 31, 2026. Future authorizations remain subject to board approval.

Potential variability remains tied to recession risks, geopolitical developments, pricing volatility and additional supply disruptions that could alter customer purchasing patterns, weighing on CDW’s overall performance.

What Our Model Displays for CDWOur proven model predicts an earnings beat for CDW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.

CDW currently has an Earnings ESP of +0.95% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable CombinationHere are three other stocks you may want to consider, as our model shows that these too have the right elements to post an earnings beat in this reporting cycle.

Arista Networks (ANET - Free Report) currently has an Earnings ESP of +3.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. 

ANET is scheduled to report quarterly earnings on Aug. 4. The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s earnings and revenues is pegged at 89 cents per share and $2.83 billion, respectively. Shares of ANET have gained 39% in the past year.

Caterpillar (CAT - Free Report) presently has an Earnings ESP of +4.96% and a Zacks Rank #3. CAT is scheduled to report quarterly numbers on Aug. 4. The Zacks Consensus Estimate for Caterpillar’s to-be-reported quarter’s earnings and revenues is pegged at $6.25 per share and $19.31 billion, respectively. Shares of CAT have risen 93.7% in the past year.

Advanced Micro Devices, Inc. (AMD - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2 at present. AMD is scheduled to report quarterly figures on Aug. 4. The Zacks Consensus Estimate for AMD’s to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $11.32 billion, respectively. Shares of AMD have skyrocketed 153.3% in the past year.

A SPECIAL WELCOME GIFT FROM ZACKS.COM Zacks' 7 Strongest Buys for August, 2026 See our "best of the best" short-term stocks. Hand-picked from 220 new Strong Buys, they could be the most profitable stocks you own over the next 90 days. Recent picks have climbed as much as +97.3% within 30 days. Our new recommendations may soar just as high.

A SPECIAL WELCOME GIFT FROM ZACKS.COM Zacks' 7 Strongest Buys for August, 2026 See our "best of the best" short-term stocks. Hand-picked from 220 new Strong Buys, they could be the most profitable stocks you own over the next 90 days. Recent picks have climbed as much as +97.3% within 30 days. Our new recommendations may soar just as high. Today's market dip makes now an ideal time to get in.

Mag 7 Earnings Preview: Did GOOGL's Results Raise Stakes? The market reaction to Alphabet's Q2 results has significantly raised the bar for its Magnificent Seven peers that are on deck to report results this week, namely Microsoft and Meta Platforms on Wednesday, July 29th, and Apple and Amazon on Thursday, July 30th.

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Zacks Private Picks Click for the easiest, most affordable way to get the 'Best of Our Best.

Click for the easiest, most affordable way to get the 'Best of Our Best.

The Best of Both Worlds: Healthcare's Rare Blend of Defense and AI Upside It's hard to believe that AI names can also be defensive in today's market, but that's what healthcare offers during the "great rotation." Bryan Hayes explains how investors can find quality at a reasonable price under the AI theme.

It's hard to believe that AI names can also be defensive in today's market, but that's what healthcare offers during the "great rotation." Bryan Hayes explains how investors can find quality at a reasonable price under the AI theme.

How Many Stocks Should You Own? Three stocks or one hundred? Which are you? Plus 3 stocks with low PEG ratios. Tracey Ryniec sorts through the questions in the latest Zacks Value Trader podcast.

Three stocks or one hundred? Which are you? Plus 3 stocks with low PEG ratios. Tracey Ryniec sorts through the questions in the latest Zacks Value Trader podcast.

Forget AI Chips and Mag 7: Buy AI Infrastructure Stocks Now Investors aiming to buy into the artificial intelligence boom driving the economy and Wall Street for the foreseeable future might want to consider best-in-class, AI-boosted infrastructure stocks.

Investors aiming to buy into the artificial intelligence boom driving the economy and Wall Street for the foreseeable future might want to consider best-in-class, AI-boosted infrastructure stocks.

Top Research Reports for Intel, Dell & Progressive Intel's AI infrastructure push, Dell's AI server boom and Progressive's premium growth highlight the latest top research reports and key opportunities.

Intel's AI infrastructure push, Dell's AI server boom and Progressive's premium growth highlight the latest top research reports and key opportunities.

Mag-7 Suffers Biggest Rout Since April 2025: ETFs to Buy The Mag-7 erased nearly $800 billion in value as AI spending worries resurfaced. Here are the ETF themes that could benefit from the shift.

The Mag-7 erased nearly $800 billion in value as AI spending worries resurfaced. Here are the ETF themes that could benefit from the shift.

Q2 Earnings: Guidance Upgrades Push These 3 Stocks Higher Companies raising guidance, particularly on the earnings front, always deserve some level of attention from investors. Recently, JNJ, GM, and ABT have all raised their outlooks.

Companies raising guidance, particularly on the earnings front, always deserve some level of attention from investors. Recently, JNJ, GM, and ABT have all raised their outlooks.

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Featured Zacks Rank Stocks Learn to Profit from the Zacks Rank

#1 Rank Bull of the Day Corsair Gaming (CRSR) This stock is leveling up on AI infrastructure.

#5 Rank Bear of the Day AngloGold Ashanti (AU) When the metal turns, so does the mining trade.

Zacks #1 Rank Top Movers for Jul 27, 2026 Zacks #1 Rank Top Movers Zacks #1 Rank Top Movers for 07/27/26 Value Growth Momentum VGM Income Company Symbol Price %Chg Ono Pharmac... OPHLF 14.61 +9.19% Signet Jewe... SIG 96.34 +5.53% Yamaha Moto... YMHAY 16.12 +3.83% Sportsman's... SPWH 1.16 +3.57% China CITIC... CHCJY 20.96 +3.44% Zacks #1 Rank Top Movers7/16 The Zacks #1 Rank List is the best place to start your stock search each morning. It's made up of the top 5% of stocks with the most potential. Each weekday, you can quickly see the Zacks #1 Rank Top Movers from Value to Growth, Momentum and Income, even VGM Score.

Go to Zacks Rank #1 Top Movers

Full Zacks #1 Rank List8/16 You can see the full Zacks #1 Rank List or narrow it down to Zacks #1 Rank Stocks with a Value, Growth, Momentum or Income Style Score of A or B. Plus, you can see the Zacks #1 Rank Stocks with a VGM of A or B. You can also sort the list with criteria you choose, view Additions and Deletions by day, and Performance.

Go to the Zacks #1 Rank List

Zacks #1 Rank Additions Company (Symbol) Research Texas Instruments (TXN) Analyst Report Signet Jewelers (SIG) Analyst Report Richardson Electroni... (RELL) Snapshot Report JAKKS Pacific (JAKK) Analyst Report Coursera (COUR) Snapshot Report Investment Ideas Earnings Analysis More Analysis Reported Earnings Surprises View All Positive Negative Symbol Time Expected Reported %Surprise GLPEY 02:48 0.34 0.60 +76.47 NBN 07:49 3.40 4.05 +19.12 BMRC 08:31 0.52 0.58 +11.54 BCAL 08:21 0.41 0.44 +7.32 ENSG 06:04 1.80 1.92 +6.67 EPS Positive Surprises for Jul 27, 2026

Symbol Time Expected Reported %Surprise CZWI 08:31 0.41 0.11 -73.17 PERF 06:30 0.02 0.01 -50.00 BSRR 08:02 0.89 0.77 -13.48 PDLB 07:29 0.37 0.35 -5.41 EPS Negative Surprises for Jul 27, 2026

Upcoming Earnings ESP View More Symbol ESP Most Accurate Estimate Consensus Estimate AAPL 2.46% 1.93 1.88 AMZN 0.30% 1.82 1.81 V 0.12% 3.23 3.23 NUE 0.16% 4.58 4.57 Featured Stock Picks

Best Utility Stocks to Buy for July 2026 Utility stocks have long served as a cornerstone for investors seeking income. Here are the best utility stocks to buy today.

Best Nuclear Energy Stocks to Buy for July 2026 Nuclear energy is back in the spotlight as governments and corporations look for reliable, low-carbon power. Here are our top nuclear energy stock picks.

Best Bank Stocks to Buy in July 2026 Here are the best bank stocks to buy now according to Zacks Investment Research.

Best Crypto Stocks to Buy for July 2026 Here are our picks for the best publicly traded companies in the cryptocurrency business.

Best Pharmaceutical Stocks to Buy for July 2026 The pharmaceutical industry continues to grow thanks to an aging population and rising demand for new treatments. Which pharma stocks are best?

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.

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.

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.

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.