3 Reasons CDW is Risky and 1 Stock to Buy Instead

Kayode Omotosho Tue, October 6, 2026 at 1:12 PM EDT 3 min read **

• ^GSPC
• CDW

3 Reasons CDW is Risky and 1 Stock to Buy Instead Even though CDW (currently trading at $135.76 per share) has gained 9.9% over the last six months, it has lagged the S&P 500's 16.8% return during that period. This might have investors contemplating their next move.

Is now the time to buy CDW, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free.

Why Is CDW Not Exciting?

We don't have much confidence in CDW. Here are three reasons why there are better opportunities than CDW, plus one stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, CDW's 3.6% annualized revenue growth over the last five years was tepid. This fell short of our benchmark 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 3.7%, versus its 3.6% annualized growth for the past five years. This projection doesn't excite us and implies its products and services will see some demand headwinds.

3. EPS Barely Growing

We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable.

CDW's EPS grew at 7.2% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 3.6% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.

Final Judgment

CDW's business quality ultimately falls short of our standards. With its shares lagging the market recently, the stock trades at 11.7× forward P/E (or $135.76 per share). While this valuation is fair, the upside isn't great compared to the potential downside. We're fairly confident there are better stocks to buy right now. We'd recommend looking at the most dominant software business in the world.

Stocks We Like More Than CDW

ALSO WORTH WATCHING: Top 5 Momentum Stocks.** The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

** Story Continues Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE**.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Terms and Privacy Policy [Privacy Dashboard ](https://guce.yahoo.com/privacy-dashboard?