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CDW Stock Surges 57% YTD: Will the Rally Continue in 2022?
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CDW Corporation (CDW - Free Report) stock has outperformed the Zacks Computer – IT Services industry as well as S&P 500 in the year-to-date (YTD) period. The stock has gained 57.1% so far this year compared with the Computer – IT Services and benchmark index’s rally of 6.6% and 26.9%, respectively.
The stock’s price rally reflects the company’s robust fundamentals. Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio now.
The company has performed brilliantly this year so far and has the potential to carry on the momentum in 2022 as well.
Image Source: Zacks Investment Research
What’s Driving CDW Stock Higher?
CDW has been benefiting from the ongoing digital transformation and increased demand for products that enable remote working and operations’ continuity plans amid the coronavirus crisis. It has been gaining from growth across government, education and healthcare end markets.
The acquisitions of Amplified IT and Focal Point Data Risk have strengthened its capabilities and expanded the product offerings. Also, it closed the Sirius Computer Solutions buyout in December 2021. Progress in network management, storage management and operating system software is a tailwind. CDW’s core strength of providing best-in-class services and easy-to-acquire technologies will bolster the firm’s growth in the future.
The latest forecast for worldwide IT spending by Gartner is a positive for CDW. The worldwide IT spending is anticipated to be $4.47 trillion in 2022, suggesting an increase of 5.5% from 2021 estimates of $4.24 trillion. The research firm expects worldwide spending on IT services to be up 11.2% year on year to $1.19 trillion this year and 8.6% to $1.29 trillion in 2022.
Solid Rank & Growth Expectations
CDW carries a Zacks Rank #2 (Buy) currently.
The Zacks Consensus Estimate of $7.83 for fiscal 2021 earnings suggests growth of approximately 18.8% from the year-ago period. The long-term earnings per share growth rate is estimated to be 13.1%.
CDW has an impressive earnings surprise history. The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 12.1%.
Analysts have raised the estimates for fiscal 2021 and fiscal 2022 over the past 30 days, reflecting their confidence in the company. During the same period, the Zacks Consensus Estimate for 2021 and 2022 moved 2 cents and 12 cents north, respectively.
Other Stocks to Consider
Some other top-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce (CRM - Free Report) , flaunting a Zacks Rank #1 (Strong Buy), Advanced Micro Devices (AMD - Free Report) and EPAM Systems (EPAM - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 30 days. For fiscal 2022, earnings estimates have moved upward by 28 cents to $4.68 per share in the last 30 days.
Salesforce’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 16.1% YTD.
The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the past 30 days.
Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 68.3% in the YTD period.
The consensus mark for EPAM’s fourth-quarter 2021 earnings has been revised upward to $2.50 per share from $2.36 over the past 60 days. For fiscal 2021, earnings estimates have been revised upward by 38 cents to $8.78 per share in the last 60 days.
EPAM’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.2%. Shares of EPAM have soared 94.5% YTD.
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CDW Stock Surges 57% YTD: Will the Rally Continue in 2022?
CDW Corporation (CDW - Free Report) stock has outperformed the Zacks Computer – IT Services industry as well as S&P 500 in the year-to-date (YTD) period. The stock has gained 57.1% so far this year compared with the Computer – IT Services and benchmark index’s rally of 6.6% and 26.9%, respectively.
The stock’s price rally reflects the company’s robust fundamentals. Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio now.
The company has performed brilliantly this year so far and has the potential to carry on the momentum in 2022 as well.
What’s Driving CDW Stock Higher?
CDW has been benefiting from the ongoing digital transformation and increased demand for products that enable remote working and operations’ continuity plans amid the coronavirus crisis. It has been gaining from growth across government, education and healthcare end markets.
The acquisitions of Amplified IT and Focal Point Data Risk have strengthened its capabilities and expanded the product offerings. Also, it closed the Sirius Computer Solutions buyout in December 2021. Progress in network management, storage management and operating system software is a tailwind. CDW’s core strength of providing best-in-class services and easy-to-acquire technologies will bolster the firm’s growth in the future.
The latest forecast for worldwide IT spending by Gartner is a positive for CDW. The worldwide IT spending is anticipated to be $4.47 trillion in 2022, suggesting an increase of 5.5% from 2021 estimates of $4.24 trillion. The research firm expects worldwide spending on IT services to be up 11.2% year on year to $1.19 trillion this year and 8.6% to $1.29 trillion in 2022.
Solid Rank & Growth Expectations
CDW carries a Zacks Rank #2 (Buy) currently.
The Zacks Consensus Estimate of $7.83 for fiscal 2021 earnings suggests growth of approximately 18.8% from the year-ago period. The long-term earnings per share growth rate is estimated to be 13.1%.
CDW has an impressive earnings surprise history. The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 12.1%.
Analysts have raised the estimates for fiscal 2021 and fiscal 2022 over the past 30 days, reflecting their confidence in the company. During the same period, the Zacks Consensus Estimate for 2021 and 2022 moved 2 cents and 12 cents north, respectively.
Other Stocks to Consider
Some other top-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce (CRM - Free Report) , flaunting a Zacks Rank #1 (Strong Buy), Advanced Micro Devices (AMD - Free Report) and EPAM Systems (EPAM - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 30 days. For fiscal 2022, earnings estimates have moved upward by 28 cents to $4.68 per share in the last 30 days.
Salesforce’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 16.1% YTD.
The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the past 30 days.
Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 68.3% in the YTD period.
The consensus mark for EPAM’s fourth-quarter 2021 earnings has been revised upward to $2.50 per share from $2.36 over the past 60 days. For fiscal 2021, earnings estimates have been revised upward by 38 cents to $8.78 per share in the last 60 days.
EPAM’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.2%. Shares of EPAM have soared 94.5% YTD.