Key statistics

Is CDW a good stock to buy in 2026?

CDW Corporation appears to offer a compelling value proposition in the Information Technology Services sector. Its P/E ratio of 12.02x is notably lower than the sector average of 17.8x, while our DCF analysis indicates a significant 78.0% potential upside to a fair value of $178.76. Furthermore, 61.2% of analysts rate CDW stock as a Buy, suggesting a positive outlook, though it is not investment advice.

2026 CDW price scenarios

Based on analyst consensus of $148.2 from 18 analysts. Not a prediction by Alert Invest.

About CDW Corporation (CDW)

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, hybrid, and cloud capabilities across data center and networking, digital workspace, and security.

Led by CEO Christine A. Leahy, CDW Corporation has established itself as a critical partner in the technology landscape, serving a broad base of corporate, small business, and public sector clients. With approximately 15,100 coworkers, CDW leverages its extensive expertise to provide tailored IT solutions, from hardware and software procurement to complex cloud integrations and security services, reinforcing its position as a leading technology provider.

CDW competitive moat and business analysis

CDW Corporation operates in a competitive Information Technology Services industry, where its competitive advantage stems from its extensive customer relationships and comprehensive service portfolio. While its net margin of 4.7% is on the lower side for the broader Technology sector, this reflects the nature of its business as a high-volume reseller and service provider. The company’s N/A ROE and ROIC figures indicate that specific profitability on equity or invested capital is not currently available for direct comparison, however, its strong free cash flow yield of 8.39% points to effective cash generation from its operations. This robust cash flow and established market presence contribute to CDW’s ability to maintain its competitive stance.

CDW’s revenue streams are diversified, with segments catering to Corporate, Small Business, and Public sectors. The company’s fiscal year 2025 revenue breakdown highlights its ability to serve a wide array of clients with varying IT needs. Geographically, CDW has a significant presence across the United States, the United Kingdom, and Canada, allowing it to tap into multiple mature and developing IT markets. This diversification helps mitigate risks associated with reliance on a single sector or region, underpinning the stability of CDW stock performance.

Despite the dynamic nature of the technology sector, CDW has demonstrated resilience, achieving a revenue growth of 6.8% over the trailing twelve months. While specific transcript quotes for strategic direction are not currently available, this growth suggests the company is effectively navigating market shifts and meeting client demands for evolving IT solutions. The ability to maintain steady growth in a competitive environment speaks to the strength of its customer loyalty and the value of its offerings. Investors interested in CDW stock should watch for continued growth trends and strategic initiatives that enhance its market position.

When evaluating CDW stock, it’s insightful to compare it against its peers in the Information Technology Services industry. For instance, investors might look at CDW vs CHKP to assess differences in cybersecurity focus, or delve into CDW vs CPAY for insights into payment processing integration within IT services. A comparison such as CDW vs GDDY could shed light on how CDW’s broad IT solutions stack up against a more specialized web services provider. These comparisons can offer a clearer picture of CDW’s competitive positioning and help in determining if CDW valuation is appropriate relative to its industry rivals.

CDW Corporation analyst rating

Based on 18 analysts. 61.2% rate CDW Buy or Strong Buy.

With 61.2% of analysts rating CDW as Buy or Strong Buy, this level of conviction is generally considered robust for a company in the Technology sector. It indicates that a majority of market professionals see significant upside potential or strong fundamentals, making a case for why is CDW a good stock to consider.

Is CDW undervalued or overvalued?

When assessing CDW valuation, several metrics paint a nuanced picture. The P/E ratio of 12.02x is notably lower than the Information Technology Services sector average of 17.8x, suggesting that CDW stock could be undervalued compared to its peers. This discount implies that the market might not be fully appreciating CDW’s earnings power, presenting a potentially attractive entry point for investors.

Our discounted cash flow (DCF) model reinforces this perspective, estimating CDW’s fair value at $178.76, indicating a substantial 78.0% upside from its current trading price. While the P/S ratio of 0.56x also points to a cheap valuation relative to sales, the P/B ratio of 5.07x suggests it might be considered expensive on a book value basis. Taken together, the P/E and DCF analysis strongly suggest that CDW stock is undervalued at current levels, which is a key consideration for potential investors.

CDW financial health & key metrics

For value investors, CDW Corporation presents a mixed but intriguing financial profile. Its P/E ratio and DCF fair value suggest the CDW stock could be significantly undervalued, offering a discount relative to its sector average. However, the relatively low net margin of 4.7% and a high debt-to-equity ratio of 2.41x require careful consideration. On a more positive note, the robust free cash flow yield of 8.39% demonstrates the company’s ability to generate cash, and its steady revenue growth of 6.8% indicates a resilient business model. Understanding these metrics is crucial for a comprehensive CDW valuation and investment decision.

CDW Corporation earnings history & next report

CDW Corporation reported EPS of $2.28, missing estimates by 0.0%. Next earnings: 2026-08-05 with EPS estimate of $2.77.

CDW Corporation recently reported an EPS of $2.28, which was in line with analyst estimates, showing no significant surprise. Looking ahead, investors in CDW stock should closely monitor the next earnings report scheduled for 2026-08-05, where analysts are estimating an EPS of $2.77. The focus will be on whether the company can meet or exceed this target, and on any updates regarding forward guidance, which could significantly impact the sentiment around CDW valuation.

CDW daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

CDW insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent CDW analyst rating changes

CDW Corporation stock news today

How does CDW compare to its peers?

For investors considering CDW stock, it’s beneficial to explore how the company stacks up against other players in the Information Technology Services sector. Benchmarking CDW’s performance, services, and market position against key competitors can provide valuable context for its overall investment appeal and CDW valuation.

FAQ — CDW Corporation (CDW) stock