CDW (CDW) Hits New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified CDW ( CDW) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified CDW as such a stock due to the following factors:

  • CDW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.0 million.
  • CDW has traded 4,175 shares today.
  • CDW is trading at a new lifetime high.

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More details on CDW:

CDW Corporation provides information technology (IT) solutions in the United States and Canada. The company operates in two segments, Corporate and Public. The stock currently has a dividend yield of 0.5%. CDW has a PE ratio of 28.9. Currently there are 6 analysts that rate CDW a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for CDW has been 788,300 shares per day over the past 30 days. CDW has a market cap of $5.6 billion and is part of the technology sector and computer software & services industry. Shares are up 41.3% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CDW as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:
  • The gross profit margin for CDW CORP is rather low; currently it is at 17.67%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.78% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$70.40 million or 7722.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio is very high at 3.70 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, CDW's quick ratio is somewhat strong at 1.25, demonstrating the ability to handle short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Electronic Equipment, Instruments & Components industry and the overall market, CDW CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • This stock has increased by 36.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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