8 Best Information Technology Services Stocks to Invest in Now

6) CDW Corporation (NASDAQ:CDW)

Number of Hedge Fund Holders: 32

CDW Corporation (NASDAQ:CDW) offers information technology (IT) solutions in the US, the United Kingdom, and Canada.

CDW Corporation (NASDAQ:CDW) has been deepening its customer relationships and is a trusted adviser on cloud, cybersecurity, networking, and devices. The company continues to gain market share. The strong performance of the company’s client devices segment, mainly in PCs and storage, offers a potential avenue for offsetting weaknesses in other areas. As companies continue to invest in digital transformation, the demand for personal computing devices and data storage solutions should remain strong.

CDW Corporation (NASDAQ:CDW) can leverage its success in this segment to tap a larger market share and expand offerings and include complementary products and services. As a result of its focus on cross-selling opportunities and bundling solutions, CDW Corporation (NASDAQ:CDW) should be able to drive growth in adjacent areas. The company’s established market position and diverse portfolio offer a strong foundation for future growth.

CDW Corporation (NASDAQ:CDW) has been focusing on areas like workload and data growth, security threats, and AI adoption. The company has been investing in AI initiatives as it views them as a long-term growth opportunity.

Stifel Nicolaus increased its price objective on the company’s shares from $250.00 to $260.00, giving a “Buy” rating on 17^th July. Aoris Investment Management, a specialist international equity manager, released its Q2 2024 investor letter. Here is what the fund said:

“The largest detractors for the quarter were Accenture and CDW Corporation (NASDAQ:CDW), which both fell by around 14%. Accenture and CDW are currently experiencing flattish years in terms of revenue and earnings growth. This follows a period of post-pandemic elevated demand. We believe both companies continue to gain market share.

CDW is the largest value-added IT reseller in the US. After a strong post-pandemic period of demand for hardware such as laptops, CDW’s customers are currently in a period of more restrained spending. This is normal and we expect demand to recover as these devices age in the next couple of years. CDW continues to deepen its customer relationships, serving as a trusted adviser on cloud, cybersecurity, networking and devices, and continues to gain market share.”