CDW Should I Buy
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CDW is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available. The technical indicators are bearish, options sentiment is neutral, and there are no recent news catalysts. While the company's financial performance in Q4 2025 showed growth, analyst ratings and price target revisions are mixed, with some downgrades reflecting caution in the IT hardware sector. Given the lack of strong positive signals and the bearish technicals, it is better to hold off on purchasing CDW stock right now.
The technical indicators for CDW are bearish. The MACD is negatively expanding (-0.901), the RSI is neutral at 26.4, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 123.086), with resistance levels at R1: 141.9 and R2: 147.711.
The company's Q4 2025 financials showed growth across key metrics: revenue increased by 6.27% YoY, net income by 5.79% YoY, EPS by 8.63% YoY, and gross margin by 2.15% YoY. Additionally, some analysts see potential for CDW to benefit from AI-related growth in the future.
Bearish technical indicators, mixed analyst ratings with multiple price target downgrades, and a cautious outlook on the IT hardware sector. Morgan Stanley downgraded the stock, citing slow hardware budget growth and inflationary pressures. No recent news or significant trading trends from hedge funds or insiders.
In Q4 2025, CDW demonstrated solid financial growth: revenue increased to $5.511 billion (up 6.27% YoY), net income rose to $279.5 million (up 5.79% YoY), EPS increased to 2.14 (up 8.63% YoY), and gross margin improved to 22.76% (up 2.15% YoY).
Analyst ratings are mixed. Recent updates include price target downgrades from UBS ($162 from $190), JPMorgan ($160 from $170), and Barclays ($144 from $148), with neutral or equal weight ratings. However, UBS and Evercore ISI maintain a positive outlook, citing potential for growth despite macro challenges.
