Here's Why CDW (CDW) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
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
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 17.4X for the current fiscal year compared to the Computers - IT Services industry's P/E of 19.9X. Additionally, CDW has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 19.2X. Value investors should also note CDW's Price/Sales ratio of 1X.
A company's earnings performance is important for value investors as well. For fiscal 2022, one analyst revised their earnings estimate higher in the last 60 days for CDW, while the Zacks Consensus Estimate has increased $0.00 to $9.75 per share. CDW also holds an average earnings surprise of 6.6%.
CDW should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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