Wait Before You Buy CDW Stock

From Nasdaq: 2025-05-13 00:46:00

CDW stock rose 7% after reporting strong Q1 2025 results, with adjusted earnings up 10% to $286.5 million. Growth driven by demand for notebooks, desktops, mobile devices, software, and services. Industry trends favor CDW, with increased investment in hybrid work tools, cloud-based software, and public sector IT modernization.

Despite moderate valuation, CDW stock appears risky due to weak operating performance and financial stability. Stock price around $180 may not be a good buy. Trefis High Quality portfolio offers a lower volatility alternative, outperforming the S&P 500 with over 91% returns since inception.

CDW stock appears cheap compared to the S&P 500 based on price-to-sales, price-to-free cash flow, and price-to-earnings ratios. Revenue growth has been marginal, with profit margins below industry average. Financial stability is weak, with high debt and low cash reserves. Downturn resilience is neutral.

During market downturns, CDW stock has seen worse impact than the S&P 500. Fully recovered post-pandemic and inflation shocks. Overall performance indicators for CDW stock show neutrality in growth and downturn resilience, but weak profitability and financial stability. Single stock investment in CDW is considered risky.

Investing in the Trefis High Quality Portfolio, with a collection of 30 stocks, offers better returns with less risk compared to the S&P 500. The portfolio has outperformed the benchmark index over the last 4 years, providing a more stable investment option. 1. The stock market hit record highs today, with the S&P 500 reaching 3,000 for the first time ever. Investors were buoyed by positive earnings reports from major companies like Amazon and Facebook, driving the market to new heights.

2. In a landmark decision, the Supreme Court ruled that LGBTQ employees are protected from workplace discrimination under the Civil Rights Act of 1964. The 6-3 ruling is seen as a major victory for LGBTQ rights and could have far-reaching implications for workplace equality.

3. New research shows that air pollution may be linked to an increased risk of developing Alzheimer’s disease. A study found that exposure to fine particulate matter was associated with a higher likelihood of developing the neurodegenerative disease, highlighting the importance of clean air initiatives.

4. The United States reported a record number of new COVID-19 cases, with over 60,000 infections in a single day. The surge in cases has prompted concerns about the country’s ability to control the spread of the virus and has led to calls for increased testing and social distancing measures.



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