Fri Dec 06 13:40:00 UTC 2024: **CDW Corporation Stock Underperforms Amidst Market Challenges**

**Vernon Hills, IL (November 29, 2024)** – CDW Corporation (CDW), a leading provider of technology solutions, has significantly underperformed the market in the past year, experiencing a 17.8% decline in share price compared to the S&P 500’s 31.8% gain. This underperformance continues into 2024, with CDW stock down 22.3% year-to-date, lagging behind both the broader market and the Technology Select Sector SPDR Fund (XLK).

The company’s struggles are attributed to challenges within its hardware solutions segment, including extended sales cycles, economic uncertainty, and increased competition. A notable factor contributing to the decline is a 12% drop in government sales. CDW’s third-quarter results, released on October 30th, further underscored these difficulties, with adjusted earnings per share (EPS) and revenue falling short of analyst expectations. While maintaining a stable gross margin, operating and net income both experienced declines. The company anticipates flat US IT market conditions and a slight decline in gross profit for the remainder of the year.

Despite the recent setbacks, analysts maintain a “Moderate Buy” consensus rating on CDW stock, with several projecting substantial upside potential. Redburn-Atlantic recently initiated coverage with a “Buy” rating and a price target of $230, citing strong product positioning and growth opportunities in the UK market as key drivers. The firm believes CDW’s current weakness is temporary and expects a recovery as discretionary spending increases. The average analyst price target stands at $227.64, representing a potential 28.8% increase from the current price. However, the highest price target reaches $250, suggesting a potential 41.4% upside. The company’s earnings surprise history is mixed, having missed estimates in three of the last four quarters.

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