Is CDW Corporation Stock Underperforming the S&P 500?

Is CDW Corporation Stock Underperforming the S&P 500?

Aritra Gangopadhyay

Mon, September 14, 2026 at 4:41 PM GMT+3 2 min read

• CDW +1.34%
• ^GSPC -0.45%

Vernon Hills, Illinois-based CDW Corporation (CDW) provides information technology (IT) solutions in the United States and internationally. The company has a market cap of $19.2 billion and operates through three segments: Commercial, Government, and Education, and offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premises and cloud capabilities across hybrid infrastructure, digital experience, and security.

Companies with a market cap of $10 billion or more are typically referred to as "large-cap stocks." CDW fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the information technology services industry.

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Despite its strength, CDW stock slipped 9.1% from its 52-week high of $169.20, reached on Sept. 17, 2025. The stock is up 16.4% over the past three months, rallying the S&P 500 Index's ($SPX) 3.6% rise during the same time frame.

However, the scenario changes in the longer term. The stock has declined 6.3% over the past 52 weeks, while SPX delivered 16.2% returns over the same time frame, outperforming the stock.

CDW has been trading above its 200-day moving average since July and also above its 50-day moving average since August.

CDW stock has faced a number of fundamentals-related problems over the past year, putting off investor confidence in the stock. The company's annual sales growth of 3.6% over the last five years lagged behind its business peers. Moreover, the company has an estimated sales growth of 3.7% for the next year, suggesting slower demand. Additionally, CDW's annual EPS growth has underperformed its revenue over the past couple of years, pointing towards less-than-profitable sales figures.

When stacked against its rival, Broadridge Financial Solutions, Inc. (BR), CDW has outperformed. Over the past year, BR stock has declined 34.2%.

Analysts' view of CDW stock is somewhat bullish. Among the 11 analysts covering the stock, the overall consensus rating is "Moderate Buy." Its mean price target of $158.60 offers a 5.2% upside potential.

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com