12 Worst Depressed Stocks To Buy Now

6. CDW Corporation (NASDAQ:CDW)

52 Week Range: 162.84 – 263.37 

Current Share Price: $167.00

Analyst Upside Potential: 34.73%

1-Year Performance: -30.31%

Number of Hedge Fund Holders: 46 

CDW Corporation (NASDAQ:CDW) provides information technology solutions for businesses, government agencies, educational institutions, and healthcare organizations primarily in the United States, the United Kingdom, and Canada. The company delivers solutions in physical, virtual, and cloud-based environments across more than 150 countries.

Aoris Investment Management commented on CDW Corporation’s (NASDAQ:CDW) performance in its Q4 2024 investor letter. The fund noted that the company was one of two primary detractors from its portfolio’s performance in 2024. Its share price remained flat until its sale in October, underperforming the fund’s benchmark by 22%. The fund also highlighted that the company experienced strong growth during 2021 and 2022 due to increased IT infrastructure spending by its customers to support remote work. This spending was heavily skewed toward hardware, which constitutes more than half of its profit. However, his growth masked a deeper issue. For instance, this heavy reliance left it less aligned with customers’ growing needs in areas like cloud computing, software, and security. Moreover, the stock has dropped more than 30% over the past 12 months making it one of the worst depressed stocks to buy now.

Aoris Investment Management stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q4 2024 investor letter:

“The two primary detractors from performance in 2024 were L’Oréal, which was held for the whole year and declined by 20%, and CDW Corporation (NASDAQ:CDW), whose share price was flat up until its sale from the Fund in October, underperforming our benchmark by 22%.

CDW is the largest IT reseller in the United States, helping more than 250,000 small to medium-sized organisations with their technology needs.

CDW enjoyed a period of strong growth over 2021 and 2022, as many of its customers invested in their IT infrastructure to support working from home, with this spend skewed towards hardware. This was particularly favourable for CDW as hardware accounts for over half of its profit, with software and services making up the balance…” (Click here to read the full text)