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CDW

💻 Technology

CDW Corporation

Conservative #545Aggressive #651Moderate RiskHigh 80
$121.58-3.15%
Day High$125.79
Day Low$120.35
Volume2.3M
Mkt Cap$15.8B
52W Low $12052W High $192
Market Cap
$16.2B
P/E Ratio
15.2
Sector avg: 87.8
Rev Growth
6.8%
Sector avg: 14.8%
Earnings Growth
-1.0%
Profit Margin
4.8%
Sector avg: -110.0%
Debt/Equity
2.42

Why This Score

CDW scores 50.8 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 42.9% exceeds the 15% quality threshold.
  • Low volatility (5.7% annualized) — well-suited for risk-averse portfolios.
  • High conviction (80/100) — fundamental and ML signals agree on this stock.
Risk Factors
  • Elevated leverage (D/E 2.42) increases financial risk in a rising-rate environment.

Minor adjustments (0.0 points) applied. CDW's rank of #545 primarily reflects its factor profile relative to the conservative weight vector.

Score Breakdown

Overall Score50.8
Fundamental Score44.9
ML Score54.0

Score by Horizon

3 Month
71.6
6 Month
80.1
Primary
1 Year
84.3

Quality Assessment

A
Earnings Grade
Strong fundamentals, high earnings quality

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
47
Neutral
Analyst (6.4%)
67
Favorable
Tradability (post-hoc)
96
Grade A
Base
46.8
SHAP
+1.9
Factors
+1.2
Conviction
+0.9
Final
50.8
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)55.0
Technical (Momentum, Weinstein, Volatility)46.0
External (Sentiment, Analyst, Macro)78.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
+0.1% to +4.5%
Medium-term
+0.8% to +7.5%
Long-term
+1.6% to +10.5%

ML Model Core Features100 trained inputs → ML Score: 54

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score66.7/100
Target Upside+32.4%
Coverage18 analysts
Market Sentiment
Sentiment Score47.2/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum-0.3%
6M Momentum-0.2%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration-5.4%
Momentum ConsistencyStrong (0.81)
Relative Strength vs Sector-31.3%
Trend Strength (ADX Proxy)Strong (4.9)
Momentum Quality-0.197
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
27%
Moderate — watch growth
Sector RevGr Rank
P39
Revenue growth vs Technology peers
Sector PE Rank
P65
Valuation vs Technology peers
Sector FCF Rank
P69
Free cash flow vs Technology peers
Growth Deviation
-0.1σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged
Value trap warning: This stock scores in the top quartile for value trap risk. The combination of below-sector-median revenue growth, low PE, and high free cash flow yield suggests the market is pricing in stagnation. The ML model's sector-relative features (trained on 30 years of data) reduce this stock's score accordingly.

Analysis Signals

Scoring Factors
Fundamental score of 70 relative to sector peers70/100
Machine learning model ranks this stock at the 85th percentileP85
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +2.5pt (features align with model priorities)
Blend: 91% fund (70.4) + 9% ML (85.3) + SHAP(+2.5) = 74.2
Factor quality: +1.6pt (multi-factor composite)
Risk assessment: moderate. Annualized volatility 5.7%. Stability bonus of +10.7 points. Max drawdown 29% (-8.4 pts). Price momentum -28% (-4.5 pts)Moderate
Market cap adjustment: +2.0 points ($16.2B market cap)+2.0 pts
Conviction bonus: +1.2pt (conviction=80)
Risk Factors
Earnings quality grade A: strong earnings quality and financial health. Score adjusted by -5 pointsGrade A
Quality concern: High leverage: D/E ratio of 2.4x — elevated balance sheet riskFlag

Sector Peer Comparison(Technology — Rank #131 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
CDW50.815.26.8%4.8%$16.2B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Market Sentimentvia FMP

Analyst Consensus
Buy18 analysts
Strong Buy: 1Buy: 10Hold: 7
Price Target
$162consensus
Low $141Median $162High $185
+33.6% to consensus target

Company Overviewvia FMP

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. Its hardware products comprise notebooks/mobile devices, network communications, desktop computers, video monitors, enterprise and data storage, and others; and software products consists of application suites, security, virtualization, operating systems, and network management. The company also provides advisory and design, software development, implementation, managed, professional, configuration, and telecom services, as well as warranties; mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. The company was founded in 1984 and is headquartered in Vernon Hills, Illinois.

CEO
Christine A. Leahy
Employees
15,100
Beta
1.05
Industry
Information Technology Services
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
25.0
Oversold
Trend
Bearish
10-day vs 50-day MA
From 52W High
-36.8%
High: $192.3
From 52W Low
+1.5%
Low: $119.83
Moving Averages
10-Day
$125.70
Below
20-Day
$129.70
Below
50-Day
$132.90
Below
200-Day
$157.10
Below
60-Day Support
$119.83
60-Day Resistance
$150.61
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 13/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-22.6%
200 SMA Slope (60d)
-5.69%
Falling
Volume Ratio
1.11x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$5.5B$5.7B$6.0B$5.2B
Gross Profit$1.3B$1.3B$1.2B$1.1B
Operating Income$431M$443M$420M$361M
Net Income$280M$291M$271M$225M
EPS (Diluted)$2.14$2.21$2.05$1.69
Gross Margin22.8%21.9%20.8%21.6%
Operating Margin7.8%7.7%7.0%7.0%
Net Margin5.1%5.1%4.5%4.3%

Why This Stock

TechnologyP/E ratio of 15.2Valuation below sector median (P/E 15.2)

Tradability FilterGrade A — 96/100Score impact: -6.9pt

Volume
100
1.8M avg/day
Dollar Vol
100
$218M/day
Float
100
130M shares
Mkt Cap
83
$16.2B
Range
90
60% spread
Composite Liquidity Score96/100
FDCBA

Multi-Year Range Analysis

Sideways: 5/100
YearLowHighRangeStatus
2021$148.91$207.6733%Moderate
2022$147.91$208.7134.1%Moderate
2023$160.66$229.4235.3%Wide
2024$170.68$263.3742.7%Wide
2025$135.63$222.9248.7%Wide
3-Year Range
64%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.7x dampening
weinstein basing

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
99.6%
Outstanding Shares
130M
Bid-Ask Spread
60.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.