CDW (NasdaqGS:CDW) Expands Digital Offerings With Smartsheet Reseller Partnership

CDW (NasdaqGS:CDW) experienced a notable price movement, with shares rising by over 15% in the past month. This uptick coincides with several significant developments. On May 28, CDW announced a strategic reseller partnership with Smartsheet, aimed at streamlining purchasing processes and promoting technology adoption. Additionally, CDW's Q1 earnings showed increased sales and net income, further supporting the stock's performance. Meanwhile, broader market trends, such as strong earnings from major tech companies like Nvidia, provided favorable conditions for tech sector stocks. However, ongoing trade uncertainties have tempered some gains in the market as a whole.

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CDW's recent price increase aligns with the company's proactive partnership with Smartsheet and the positive Q1 earnings, underscoring investor confidence. These events could bolster CDW's narrative of expanding its offerings, especially in cloud and cybersecurity. However, the ongoing trade uncertainties remain a risk factor that could impact future revenue streams.

Looking at the longer term, CDW’s total shareholder return over the past five years stands at 68.84%. This substantial gain provides solid context for understanding CDW's recent share price dynamics and highlights the effectiveness of its initiatives. Over the past year, CDW underperformed the U.S. market with a return of less than 11.3%, suggesting room for growth and improvement.

The recent developments may positively influence CDW's revenue and earnings forecasts, given the investment in high-margin services. The announced partnership could accelerate these projections, placing CDW in a favorable position within the industry. Analysts forecast revenue to grow annually by 4.3%, though this is somewhat conservative compared to broader market expectations.

In relation to the consensus price target of $204.17, CDW's current share price of $163.93 suggests a potential upside of approximately 19.7%. This reflects a fair valuation based on projected growth rates and earnings, albeit contingent on the external economic conditions that CDW faces. As CDW continues to navigate these challenges, its long-term prospects and value proposition remain key considerations for stakeholders.

Understand CDW's track record by examining our performance history report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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