Should You Buy CDW Corp (CDW) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
126.390
1 Day change
0.95%
52 Week Range
222.920
Analysis Updated At
2026/01/28
Not a good buy right now for a beginner long-term investor who wants to act immediately. CDW is in a clear technical downtrend (bearish moving-average stack and worsening MACD), and the latest quarter showed revenue growth but declining EPS/net income. While the stock is near support and options positioning is bullish (low put-call ratios), the trend and fundamentals don’t yet confirm a durable bottom. Best stance today: HOLD (do not initiate a new long position at $124).
Technical Analysis
Trend is bearish. Moving averages are stacked negatively (SMA_200 > SMA_20 > SMA_5), signaling a sustained downtrend. MACD histogram is -0.369 and negatively expanding, indicating downside momentum is still strengthening. RSI_6 is ~28.8 (near oversold), which can spark bounces, but oversold alone is not a trend reversal signal. Price is sitting right on key support S1 ~124.15 (current 124.25); a break below points to S2 ~121.12. Resistance levels to reclaim for trend improvement: pivot ~129.07, then ~133.99.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Options sentiment is bullish/risk-on: put-call ratios are low (0.29 on both OI and volume), implying more calls than puts. Implied vol (30D ~34.5) is below historical vol (~40.3) but IV percentile is high (82), suggesting options are pricing relatively elevated uncertainty versus its own history. Today’s options volume is very light (22 contracts) but far above its 30D average (22.45x), so the day’s flow may be noisy rather than broadly representative.
Technical Summary
Sell
8
Buy
3
Positive Catalysts
Mean-reversion bounce potential: price is at/near S1 support with RSI near oversold.
Analysts’ targets remain above current price (even after cuts), implying perceived upside if execution stabilizes.
Next earnings (QDEC
on 2026-02-04 pre-market can act as a catalyst if margins/EPS re-accelerate (Street est. EPS ~2.31).
Neutral/Negative Catalysts
Technical downtrend remains intact (bearish MA stack + worsening MACD), increasing odds of further downside before a base forms.
Latest reported quarter showed profit pressure: EPS and net income down YoY despite revenue growth.
Recent analyst tone has become more cautious: notable downgrade (Morgan Stanley to Equal Weight) citing weak hardware budget growth and more defensive stance.
No supportive near-term news flow in the past week to shift sentiment.
Financial Performance
Latest quarter: 2025/Q3. Revenue grew to $5.737B (+4.0% YoY), but profitability weakened: net income $291M (-8.03% YoY) and EPS $2.21 (-5.96% YoY). Gross margin improved to 21.88% (+0.51 YoY), which is a positive quality signal, but earnings are still trending down—this reduces confidence that the current dip is immediately investable for a beginner without a confirmed turnaround.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: price targets have been cut across multiple firms, and at least one major downgrade hit (Morgan Stanley to Equal Weight, PT to $141 from $177) on a more cautious hardware spending outlook. Offsetting that, Evercore kept Outperform (PT cut to $180), and UBS maintained Buy (PT cut to $190); Citi stays Neutral (PT $148). Wall Street pros view (net): Pros—possible AI/services mix benefit and long-term advisory role; Cons—near-term IT/hardware budget softness and uncertainty around spending cycles, reflected in repeated PT reductions. Influential trading: Hedge funds neutral; insiders neutral; no recent Congress trading data available.
Wall Street analysts forecast CDW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDW is 177.14 USD with a low forecast of 148 USD and a high forecast of 200 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
Wall Street analysts forecast CDW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDW is 177.14 USD with a low forecast of 148 USD and a high forecast of 200 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 125.200
Low
148
Averages
177.14
High
200
Current: 125.200
Low
148
Averages
177.14
High
200
Evercore ISI
Amit Daryanani
Outperform -> NULL
downgrade
$200 -> $180
AI Analysis
2026-01-20
Reason
Evercore ISI
Amit Daryanani
Price Target
$200 -> $180
AI Analysis
2026-01-20
downgrade
Outperform -> NULL
Reason
Evercore ISI analyst Amit Daryanani lowered the firm's price target on CDW to $180 from $200 and keeps an Outperform rating on the shares as part of the firm's Q4 preview note on its IT hardware and networking coverage.
Morgan Stanley
Overweight -> Equal Weight
downgrade
$177 -> $141
2026-01-20
Reason
Morgan Stanley
Price Target
$177 -> $141
2026-01-20
downgrade
Overweight -> Equal Weight
Reason
Morgan Stanley downgraded CDW to Equal Weight from Overweight with a price target of $141, down from $177. The firm's chief investment officer survey indicated the the slowest hardware budget growth in 15 years. Resellers are expecting an "elastic demand response" to input cost inflation, which warrants a more defensive IT hardware position despite secular AI tailwinds, the analyst tells investors in a research note. Morgan Stanley has turned "more defensive," saying its recent survey work "signals the perfect storm of cautionary factors emerging." The firm downgraded its sector view to Cautious from In-Line.
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