CDW’s stock price has taken a beating over the past six months, shedding 24.8% of its value and falling to $136.22 per share. This may have investors wondering how to approach the situation.

Is there a buying opportunity in CDW, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.

Why Is CDW Not Exciting?

Despite the more favorable entry price, we don't have much confidence in CDW. Here are three reasons there are better opportunities than CDW and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, CDW’s sales grew at a mediocre 4.1% compounded annual growth rate over the last five years. This was below our standard for the business services sector.

2. Projected Revenue Growth Is Slim

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect CDW’s revenue to rise by 2%, close to its 4.1% annualized growth for the past five years. This projection doesn't excite us and indicates its newer products and services will not lead to better top-line performance yet.

3. EPS Growth Has Stalled Over the Last Two Years

While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.

CDW’s EPS was flat over the last two years, just like its revenue. This performance was underwhelming across the board.

Final Judgment

CDW’s business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 13.6× forward P/E (or $136.22 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We're pretty confident there are superior stocks to buy right now. Let us point you toward one of our top digital advertising picks.

Stocks We Like More Than CDW

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.