$227.70
arrow_drop_up2.74%Is CDW a Buy or Sell based on AI Analysis?
Fundamental Analysis
CDW Corp-DE is a stock with a strong fundamental analysis, as evidenced by key indicators such as a price-to-earnings (PE) ratio of 30.42, indicating the company's valuation relative to its earnings. Additionally, the company has a dividend yield of 1%, showcasing its ability to provide returns to shareholders through dividends. The net margin of 5.17% reflects the company's profitability after accounting for all expenses, while a return on equity of 60.58% highlights the company's efficiency in generating profits from shareholders' equity. Furthermore, the company's debt-to-equity ratio of 3.07 suggests a moderate level of debt relative to equity, indicating a balanced financial structure. CDW Corp-DE's strong fundamentals are further supported by its operating margin of 9.27%, indicating the company's efficiency in managing operating expenses to generate profits. The company's free cash flow margin of 6.79% demonstrates its ability to convert revenue into free cash flow, which can be used for growth or returned to shareholders. The company's revenue of $21.38B and net income of $1.1B reflect a healthy top-line growth and profitability. Additionally, the company's strong return on assets of 8.1% signifies its ability to generate profits from its asset base. Overall, these fundamental indicators paint a positive picture of CDW Corp-DE's financial health and performance in the market.
Positive Development
CDW Corp's stock has consistently outperformed competitors, indicating strong market confidence in the company's performance. The company's asset turnover, gross margin, and operating margin are above the industry average, which indicates that CDW Corp is effectively managing its resources and operations. The company's net margin and EPS are also positive, indicating profitability. CDW Corp's stock has shown a consistent increase in value over the past few weeks, indicating a positive trend in investor sentiment.
Negative Development
CDW Corp's stock has underperformed in some days, indicating potential volatility in the company's stock price. The company's debt to equity ratio is relatively high, which could be a concern for investors. The company's current ratio is less than 1, which could indicate liquidity issues. The company's net debt to total capital and net debt to total equity ratios are also relatively high, indicating a high level of debt.
Technical Analysis
CDW Corp-DE, a technology company, currently has a technical rating of "NEUTRAL" based on various indicators such as ATR, RSI, MACD, ADX, ROC, CCI, WILLR, and STOCHRSI. The stock price is currently at $246.67, with a market cap of $33.11B and a beta of 1.1, suggesting moderate volatility compared to the market. The stock has a 52-week high of $248.86 and a low of $160.66, with a seven-day price change of -0.20% and one-month price change of 6.9%. Additionally, the company's technical analysis shows one buy indicator, four hold indicators, and three sell indicators as of the most recent update on March 4, 2024, indicating a mixed sentiment among technical analysts. Furthermore, CDW Corp-DE's technical analysis reflects a solid performance in terms of average sales growth, with an average operating profit margin growth of 5.11% and earnings growth average of 5.91% over three years. The company's current price discount compared to its all-time and one-year peak prices is relatively low at 0.1%. Additionally, the stock has a trailing PE ratio of 30.5 and a trailing annual dividend yield of 1%, indicating a stable investment opportunity for dividend-seeking investors. Overall, the technical analysis of CDW Corp-DE highlights a balanced perspective on the stock's performance, with a neutral rating and a mixed sentiment among technical indicators.
Conclusion and recommendation
Based on the data provided for CDW Corp-DE, it is evident that the company has a solid financial standing, with a market cap of $33.11B and a PE ratio of 30.42. Additionally, CDW Corp-DE has shown consistent growth over the past three months, with a price change percent of 16.03%. The company also has a strong return on equity of 60.58% and a dividend yield of 1%. With a score of 58 and a neutral technical rating, CDW Corp-DE appears to be a stable investment option in the technology sector. However, it is important to keep an eye on the analyst forecast price change of -12.32% and monitor any potential risks associated with the stock. In conclusion, CDW Corp-DE is a well-established company in the technology sector with a strong financial performance and growth potential. While the stock may currently have a neutral recommendation from analysts, the company's consistent revenue growth, healthy dividend yield, and solid return on equity indicate a promising future. Investors should consider the company's financial metrics, industry competitiveness, and market trends before making any investment decisions. Overall, CDW Corp-DE presents itself as a stable investment option with growth opportunities in the technology sector.