CDW Corp (CDW) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day, but there is still a lot to like here. Let's take a deeper look how this stock became the Bear of the Day and if you should gamble on this play with earnings coming in just a few days.
CDW Corporation offers information technology products and services to business, government, education and healthcare customers primarily in the United States and Canada. Its hardware products comprise network communications, notebooks/mobile devices, data storage, video monitors, printers, desktops and servers as well as NetComm products. The company's software services include licensing, licensing management, software solutions and services. In addition, it offers configuration services which include virtualization, collaboration, security, mobility, data centre optimization and cloud computing. CDW Corporation is headquartered in Vernon Hills, Illinois.
This stock has a great earnings history. The company has topped the Zacks Consensus Estimate in each of the last four quarters. The average postiive earnings surprise is 8.9%.
This is clearly not the reason the stock is a Zacks Rank #5 (Strong Sell).
The estimate picture is actually a very good one. There are a few negative revisions, but on the whole, I like what I see.
The 2019 full year number slipped to $5.74 from $5.77 -- but then jumped right back to the prior level. This negative revision, along with two negative revisions for the 2020 number are the only negatives that I see.
I really like what I see here, with a 19x forward earnings multiple and solid top line growth of around 10%. THe 17x price to book is rather high, but the 1x price sales tells me that the market values the sales of its services and products.
In summary, the slight negatives on the estimate revisions are things that investors need to be ok with if they want to be in this stock ahead of earnings. The company is slated to report before the open on July 31.
CDW Corporation Price and Consensus
CDW Corporation price-consensus-chart | CDW Corporation Quote
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