Should You Consider Adding CDW Corporation (CDW) to Your Portfolio?

Delaware Funds by Macquarie, an investment management company, released its “Delaware Ivy Core Equity Fund” Q3 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500® Index rose 5.9% in the third quarter, indicating continuing gains in the US large-cap equity market. Delaware Ivy Core Equity Fund Class I shares outperformed the Fund’s benchmark, the S&P 500 Index in the third quarter. Stock selection drove all of the relative outperformance compared with the Fund’s benchmark, while sector allocation was neutral to relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Delaware Ivy Core Equity Fund highlighted stocks like CDW Corporation (NASDAQ:CDW), in the third quarter 2024 investor letter. CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions provider. The one-month return of CDW Corporation (NASDAQ:CDW) was 0.68%, and its shares lost 22.08% of their value over the last 52 weeks. On December 26, 2024, CDW Corporation (NASDAQ:CDW) stock closed at $177.12 per share with a market capitalization of $23.6 billion.

Delaware Ivy Core Equity Fund stated the following regarding CDW Corporation (NASDAQ:CDW) in its Q3 2024 investor letter:

“CDW Corporation (NASDAQ:CDW) is a value-added reseller of technology hardware and services. The company is two years into a down-cycle in IT spending after a robust 2021 and 2022 driven by the pandemic and resulting work-from-home demand. We believe revenue and earnings are below trend, with results eventually returning to solid GDP+ growth in coming years.”

An IT Executive reviewing blueprints and schematics for a hardware solution.

CDW Corporation (NASDAQ:CDW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the third quarter which was 32 in the previous quarter. CDW Corporation (NASDAQ:CDW) reported net sales of $5.5 billion in the third quarter, down 2% year-over-year. While we acknowledge the potential of CDW Corporation (NASDAQ:CDW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed CDW Corporation (NASDAQ:CDW) and shared the list of best information technology services stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.