CDW CDW shares soared 4.8% in the last trading session to close at $186.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 7% loss over the past four weeks.
The upswing in share price came after the business technology retailer announced entering a definitive agreement to acquire Sirius Computer for $2.5 billion in cash. The acquisition is expected to further bolster CDW’s capabilities in the managed services space. Moreover, it will enhance its services and solutions offerings across key growth areas including hybrid infrastructure, digital and data innovation, security and cloud services.
This information technology company is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of +12%. Revenues are expected to be $5.34 billion, up 12.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For CDW, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CDW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CDW Corporation (CDW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research