Cracking The Code: Understanding Analyst Reviews For CDW

In the last three months, 6 analysts have published ratings on CDW CDW, offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $272.5, a high estimate of $300.00, and a low estimate of $232.00. This current average has increased by 8.64% from the previous average price target of $250.83.

Investigating Analyst Ratings: An Elaborate Study

The perception of CDW by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CDW. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CDW compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of CDW's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CDW's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on CDW analyst ratings.

All You Need to Know About CDW

CDW Corp is a multi-brand provider of information technology ("IT") solutions to small, medium, and large business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. The company's broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. The company has three operating segments namely, Corporate, Small Business, and Public. The Corporate segment generates the majority of its revenue and primarily serves US private sector business customers with more than 250 employees.

Financial Insights: CDW

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Challenges: CDW's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -7.72%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: CDW's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 5.9%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): CDW's ROE excels beyond industry benchmarks, reaching 15.37%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.26%, the company showcases effective utilization of assets.

Debt Management: CDW's debt-to-equity ratio stands notably higher than the industry average, reaching 2.84. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.