CDW Corporation (CDW - Free Report) is set to report first-quarter 2017 results on May 3. Last quarter, the company posted a positive earnings surprise of 6.58%. Notably, the stock outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 5.85%.
Let us see how things are shaping up for this announcement.
Factors at Play
CDW specializes in offering information technology products and services to business, government, education and healthcare customers, primarily in the U.S. and Canada.
Growth in customer channels and consistent strategic achievements are a couple of positive factors which are anticipated to drive the company’s performance in the soon-to-be reported quarter. Additionally, CDW’s robust product portfolio and product refreshes are positives.
The company’s exposure in the high-end corporate desktop and digital education implementation space is encouraging. Moreover, CDW’s focus on small & medium businesses and customer additions help in expanding its market share.
However, a highly-leveraged balance sheet, competition from Insight Enterprises Inc. (NSIT - Free Report) and PC Connection, Inc., and pricing pressure remain headwinds.
Earnings Whispers
Our proven model does not conclusively show that CDW will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for CDW is 1.41%. This is because the Most Accurate estimate of 72 cents is higher than the Zacks Consensus Estimate by a penny. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CDW carries a Zacks Rank #4 (Sell). Note that, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
AMTEK Inc. (AME - Free Report) , with an Earnings ESP of +1.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple Inc. (AAPL - Free Report) , with an Earnings ESP of +1.00%, and a Zacks Rank #3.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
CDW Corporation (CDW - Free Report) is set to report first-quarter 2017 results on May 3. Last quarter, the company posted a positive earnings surprise of 6.58%. Notably, the stock outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 5.85%.
Let us see how things are shaping up for this announcement.
Factors at Play
CDW specializes in offering information technology products and services to business, government, education and healthcare customers, primarily in the U.S. and Canada.
Growth in customer channels and consistent strategic achievements are a couple of positive factors which are anticipated to drive the company’s performance in the soon-to-be reported quarter. Additionally, CDW’s robust product portfolio and product refreshes are positives.
The company’s exposure in the high-end corporate desktop and digital education implementation space is encouraging. Moreover, CDW’s focus on small & medium businesses and customer additions help in expanding its market share.
However, a highly-leveraged balance sheet, competition from Insight Enterprises Inc. (NSIT - Free Report) and PC Connection, Inc., and pricing pressure remain headwinds.
Earnings Whispers
Our proven model does not conclusively show that CDW will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for CDW is 1.41%. This is because the Most Accurate estimate of 72 cents is higher than the Zacks Consensus Estimate by a penny. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CDW carries a Zacks Rank #4 (Sell). Note that, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
AMTEK Inc. (AME - Free Report) , with an Earnings ESP of +1.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple Inc. (AAPL - Free Report) , with an Earnings ESP of +1.00%, and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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