5 Best Stocks to Buy According to Peter Lewis’ LFL Advisers

1. CDW Corp (NASDAQ:CDW) 

Lewis’ Stake Value: $ 47,755,000

Percentage of Peter Lewis’ 13F portfolio: 22.3%

Number of Hedge Fund Holders: 27

CDW Corp (NASDAQ: CDW) ranks 1st on Peter Lewis’ list of top stocks to invest in. The company is headquartered in Lincolnshire, Illinois, and provides information technology solutions to a range of entities through its three segments: Corporate, Small Business and Public.

As of the second quarter of 2021, Peter Lewis’ LFL Advisers hold 273,430 shares in CDW Corp (NASDAQ: CDW) worth $47.75 million, covering 22.3% of the fund’s total holdings.

On 29th September, analyst firm JP Morgan upgraded its outlook on CDW Corp (NASDAQ: CDW) to ‘Neutral’, setting a price target at $200.

In the second quarter of 2021, 27 hedge funds out of 873 tracked by Insider Monkey held stakes worth $1.76 billion in CDW Corp (NASDAQ: CDW).

Investment advisory firm Wedgewood Partners shared its insights on CDW Corp (NASDAQ: CDW) in its investor letter for Q2 2021. Here’s what they had to say:

“We have owned CDW stock for nearly two years now, and we have been quite pleased to see our thesis playing out as expected – even with the completely unexpected trauma of the pandemic fireworks during our holding period. These are the key components of our investment thesis, in simplistic form: First, the IT distribution and consulting industry is an attractive place to invest, with secular growth above that of the broad economy. Second, we expect the Company to continue to take share within the IT distribution and consulting industry, growing faster than the industry while continuing to improve margins and returns. The pandemic emerged shortly after our purchase, but even that did not alter the favorable dynamics underlying our thesis, as you can see below.

So, even in a negative year for total economic growth, IT spending in the U.S. came in better than the broad economy. The Company outperformed the industry and with improved profitability – which always be stills our hearts. Additionally, consulting the chart below, you can see that the gap between its growth and the industry’s growth continues to widen over time, and that spread continued to expand during the abnormal conditions in 2020 as well. All of this gives us even greater comfort in our initial thesis…” (Click here to see the full text)

You can also take a peek at the 10 Best Biotech Stocks To Buy For 2021 and 10 Most Profitable Cash-Only Businesses To Avoid Taxes.

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