In This Article:
CDW experienced a price decline of 11% last week, possibly influenced by global tariff announcements that triggered a broad market sell-off, with the Dow, S&P 500, and Nasdaq each posting significant losses. The overall market fell 10%, largely due to escalating trade tensions and investor concerns about economic growth and inflation. While the downturn affected the technology sector and broader indices significantly, CDW's performance mirrored the broader market trends, as technology stocks, in particular, were under pressure. The week's developments underscore the broader market volatility amid global trade policy uncertainties.
Buy, Hold or Sell CDW? View our complete analysis and fair value estimate and you decide.
CDW's total shareholder return of 44.13% over the last five years indicates a positive long-term performance for the company. This growth reflects several key developments. CDW's strategic investments in cloud, artificial intelligence, and healthcare positioned it in high-demand sectors. These initiatives were furthered by acquiring Mission Cloud Services, enhancing CDW's reach in these rapidly expanding markets. Despite this, CDW experienced challenges with macroeconomic factors such as inflation and policy uncertainties, impacting hardware sales and international operations.
In recent news, CDW increased its equity buyback plan by US$750 million, reflecting confidence in its future prospects. However, with earnings and net income slightly declining in 2024, the company's financial dynamics remain under scrutiny. During the past year, CDW's return underperformed both the US market and the US Electronic industry. Executive changes, including the transition of Chris Corley and the appointment of Liz Connelly, indicate a strategic focus on leadership restructuring to navigate future challenges and growth opportunities.
Assess CDW's future earnings estimates with our detailed growth reports.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.