CDW At Price Support Zone, Right Time To Buy?

September 27th, 2025 by Trefis Team
CDW: CDW logo
CDW
CDW

CDW (CDW) should be on your watchlist. Here is why – it is currently trading in the support zone ($156.15 – $172.59), levels from which it has bounced meaningfully before. In the last 10 years, the stock received buying interest at this level 7 times and subsequently went on to generate 25.1% in average peak returns.

  Peak Return Days to Peak Return
2/17/2021 16.9% 58
5/6/2021 1.3% 1
6/25/2021 21.7% 193
5/24/2022 18.6% 93
9/30/2022 37.7% 139
4/21/2023 59.9% 341
4/9/2025 19.6% 34

But is the price action enough alone? It certainly helps if the fundamentals check out. For CDW Read Buy or Sell CDW Stock to see how convincing this buy opportunity might be.

Here are some quick data points:

  • Revenue Growth: 4.5% LTM and -1.5% last 3 year average.
  • Cash Generation: Nearly 4.7% free cash flow margin and 7.6% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for CDW was -6.4%.
  • Valuation: CDW trades at a PE multiple of 20.1
  • Opportunity vs S&P: Compared to S&P, you get lower valuation, lower revenue growth, and lower margins

CDW provides IT solutions and services including advisory, software development, implementation, managed, professional, configuration, and telecom across Corporate, Small Business, and Public sectors in the US, UK, and Canada.

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  CDW S&P Median
Sector Information Technology –
Industry Technology Distributors –
PE Ratio 20.1 23.8
   
LTM* Revenue Growth 4.5% 5.1%
3Y Average Annual Revenue Growth -1.5% 5.3%
Min Annual Revenue Growth Last 3Y -6.4% -0.1%
   
LTM* Operating Margin 7.6% 18.6%
3Y Average Operating Margin 7.7% 17.8%
LTM* Free Cash Flow Margin 4.7% 13.3%

*LTM: Last Twelve Months

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

What Is Stock-Specific Risk If The Market Crashes?

That said, CDW isn’t immune to big drops. It fell about 22% during the 2018 correction, nearly 45% in the Covid pandemic crash, and around 26% in the inflation shock. Even with strong fundamentals, the stock can take a hit when the market turns sour. Quality matters, but in a sell-off, losses like these show risk is real.

But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read CDW Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.