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CDW (NASDAQ:CDW) Corporation (NASDAQ: CDW), a leading provider of technology products and services with a market capitalization of $22.36 billion, saw its stock hit a 52-week low of $168.42, reflecting broader market trends and investor sentiment. According to InvestingPro analysis, the stock appears undervalued at current levels, with a P/E ratio of 21x. This latest price level, marking the lowest point for the stock in the past year, comes as the company navigates through a challenging economic landscape. Over the past year, CDW’s stock has experienced a significant downturn, with a 1-year total return of -29.32%. Despite these challenges, InvestingPro data reveals the company has maintained dividend payments for 13 consecutive years and generally trades with low price volatility. This decrease underscores the pressures faced by tech companies in the current market, as they grapple with factors such as supply chain disruptions, changing demand, and global economic uncertainties. Discover 8 more exclusive InvestingPro Tips and comprehensive analysis in CDW’s Pro Research Report.
In other recent news, CDW Corporation reported a strong fourth-quarter performance, surpassing both earnings and revenue expectations. The company announced an earnings per share (EPS) of $2.48, exceeding analyst estimates of $2.33, and reported revenue of $5.19 billion, higher than the anticipated $4.96 billion. These results were driven by increased customer spending across various segments, including significant growth in the Healthcare sector. Despite these positive results, CDW’s full-year net sales for 2024 showed a slight decline of 1.8% compared to 2023, highlighting ongoing economic challenges.
Barclays (LON:BARC) analysts responded to CDW’s strong quarterly performance by raising the stock price target from $201 to $223, while maintaining an Equalweight rating. They noted potential growth in Netcomm and Storage sectors, though expressed caution regarding the Server segment. CDW’s board approved a $750 million increase in share repurchase authorization and announced a quarterly cash dividend of $0.625 per share, a 1% increase from the previous year. Despite the robust quarter, a JPMorgan analyst offered a cautious outlook for 2025, citing modest growth expectations for gross profit and earnings. The company remains focused on exceeding US IT market growth and maintaining its position as a key partner for technology brands.
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