This information technology (IT) company operates in the United States and Canada. It offers discrete hardware and software products, including notebooks/mobile devices, network communications, enterprise and data storage, video monitors, printers, desktop computers, and servers; and application suites, security, virtualization, operating systems, network management and software as a service. Analysts are calling for almost 12% growth this year, and two have increased their estimates in the past month. RBC Capital Markets has recently said that the stock was “very attractive and a somewhat defensive small/midcap play for investors.”
CDW (CDW)
From Dow Theory Forecasts
CDW’s (CDW) December quarter earnings per share rose 23% to $0.73, excluding special items, easing past the consensus by a penny. Sales advanced 12%, benefiting from CDW’s August acquisition of Kelway and 5% organic growth. CDW says per-share profits should rise by low-double digits this year, while the consensus projected 14% growth at the time of the announcement.
Management expects to keep taking market share, and says sales could rise 4% to 6% in 2016, excluding the Kelway deal and a new Dell partnership. The consensus calls for 11% higher total revenue this year.
CDW is a Focus List Buy and a Long-Term Buy.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, February 15, 2016