<!-- HTML_TAG_START -->NasdaqGS:CDW Earnings and Revenue Growth December 22nd 2024<!-- HTML_TAG_END -->
CDW Corporation (NASDAQ:CDW) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$229 and falling to the lows of US$171. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether CDW’s current trading price of US$175 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at CDW’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for CDW
According to our valuation model, CDW seems to be fairly priced at around 12% below our intrinsic value, which means if you buy CDW today, you’d be paying a fair price for it. And if you believe the company’s true value is $198.11, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that CDW’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. CDW’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
Are you a shareholder? It seems like the market has already priced in CDW’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on CDW, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
