CDW (CDW) is a Top-Ranked Value Stock: Should You Buy?
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and 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 21.3X, shares of CDW are trading at a forward P/E of 17.7X. CDW also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 18.1X, and a Price/Sales ratio of 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 $0.08 to $9.66 per share. CDW also holds an average earnings surprise of 6.8%.
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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