Why CDW (CDW) is a Top Value Stock for the Long-Term

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

CDW (CDW)

Headquartered in Vernon Hills, IL, CDW Corporation, founded in 1984, is a leading provider of integrated information technology (IT) solutions to small, medium and large business, government, education and healthcare customers in the United States, United Kingdom and Canada.

CDW sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Computers - IT Services industry's P/E of 26.4X, shares of CDW are trading at a forward P/E of 19X. CDW also has a PEG Ratio of 1.5, a Price/Cash Flow ratio of 19.6X, and a Price/Sales ratio of 1.1X.

A company's earnings performance is important for value investors as well. For fiscal 2022, seven analysts revised their earnings estimate higher in the last 60 days for CDW, while the Zacks Consensus Estimate has increased $0.09 to $9.75 per share. CDW also holds an average earnings surprise of 6.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CDW to their portfolios.


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