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CDW (CDW) Stock May Be 36% Undervalued On AI Services Deal

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Stocks & ETFs:CDW.US

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CDW Corp's stock has been highlighted as potentially undervalued due to an AI services deal.

CDW Corp's stock is viewed as potentially 36% undervalued following news of a deal in AI services. This assessment comes from a report suggesting the stock could rise significantly, especially after CDW shares closed at US$151.28, marking a 5.71% increase in just one day. Over the past week, the stock has risen by 12.01%, though it has decreased by 1.18% over the last month, and it has gained 15.93% year-to-date.

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CDW Corp

CDW.US

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CDW.US

CDW Corp

Source:WealthAwesomeWealthAwesome
↑ $16.95 (12.55%)
120 day period
$98.25$126.08$153.92Apr 23Jul 21Oct 13

Market cap

$19.00B

P/E

17.3x

Div. yield

1.75%

Div. / share

$2.52

52W high

$158.05

52W low

$96.09

1W change

+12.01%

Beta

0.94

Analyst Price Targets

Based on 10 analysts covering CDW · as of Oct 5, 2026

📈

Wall Street analysts forecast CDW stock price to rise 4.4% over the next 12 months.

Consensus

Buy

4.20 / 5.00

Avg. Target

C$158.67

+4.4% Upside

Current Price

C$151.97

Last close

Analyst Breakdown (10 analysts)

Strong Buy 5
Buy 2
Hold 3
Compare analyst targets →

Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.

Wealth Awesome Price Forecast

WA Model

Statistical 90-day price range based on CDW's historical volatility

HistoricalForecast68%95%
C$101.56C$146.19C$190.82C$235.45C$280.08C$324.71TodayJun 5Aug 11Oct 13Nov 25Jan 8Feb 20

30-Day Vol

46.1%

Annualized

90-Day Vol

47.5%

Annualized

Trend (90d)

+50.0%

Annualized drift

90d Mean

C$181.68

Expected price

HorizonExpected68% Range (1σ)
30 trading daysC$161.29C$137.57 – C$189.11
60 trading daysC$171.18C$136.69 – C$214.38
90 trading daysC$181.68C$137.92 – C$239.32

Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.

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Investor takeaway: The potential undervaluation of CDW's stock based on the AI services deal presents an opportunity for investors.

CDW's stock has gained 5.71% in a single day.

The stock closed at US$151.28, significantly above its 50-day and 200-day moving averages.

Bull case

CDW's recent performance and increasing focus on AI services could boost its growth prospects. Investors are optimistic about how the company will leverage this deal to enhance its market position and drive future earnings.

Bear case

However, investors should remain cautious about market volatility and the competitive landscape in the AI sector. While the potential for growth is there, challenges from competitors could impact CDW's ability to capitalize on its recent developments.

Recent Valuation Insights

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CDW Corp's stock is being analyzed for its potential undervaluation, with estimates suggesting it could be 36% undervalued due to a new AI services deal. This valuation comes as the company's price-to-earnings (P/E) ratio stands at 17.289, reflecting a favorable valuation compared to its growth potential. Analysts have set an average target price of US$158.67, indicating a possible upside of 4.9% from the current closing price. The stock's performance suggests that investors are optimistic about its future prospects.

Stock Performance Metrics

Following the news, CDW stock experienced a 5.71% increase, closing at US$151.28. The trading volume was reported at 135,819 shares, which is 1.71 times the 20-day average volume of 1,428,547 shares. CDW's stock has shown strong year-to-date performance with a 15.93% increase. It is currently trading above its 50-day moving average of US$141.92 and its 200-day moving average of US$131.54, indicating a strong upward trend. Additionally, the stock is trading within 89% of its 52-week range, which spans from US$96.09 to US$158.05.

Future Considerations

Investors will be watching how CDW capitalizes on its AI services deal and whether this will lead to sustained growth. The company has a profit margin of 4.6% and a return on equity (ROE) of 44.0%, which are indicators of its operational efficiency. Additionally, the market capitalization stands at approximately US$18.99 billion. These fundamentals, combined with the recent stock performance, make CDW a company to watch as it navigates the evolving landscape of AI services and technology.


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Wealth Awesome
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Wealth Awesome

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This content has been reviewed by CFA® charterholders and Certified Financial Planners (CFP®) with over a decade of experience in Canadian financial markets. All information is fact-checked against official Canadian sources and regulations.

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⚠️ Professional Disclaimer

This content is for educational purposes only and should not be considered personalized financial advice. While our team brings professional expertise, individual circumstances vary. For personalized guidance, consult with a qualified financial advisor, tax professional, or mortgage specialist.

Published: October 14, 2026
Last Updated: October 14, 2026

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