CDW Corporation (NASDAQ:CDW) is included among the 13 Top Tech Stocks Paying Consistent Dividends.
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On December 17, Morgan Stanley cut its price target on CDW Corporation (NASDAQ:CDW) to $177 from $191. The firm kept its Overweight rating. In its year-ahead view on IT hardware, Morgan Stanley said it prefers companies tied to cloud spending, product refresh cycles like Apple, and businesses with more differentiated assets. It is steering away from names with heavy memory exposure, including Dell and HP. The analyst stated that the firm is becoming more cautious regarding memory-linked stocks overall.
CDW Corporation’s (NASDAQ:CDW) third-quarter results demonstrated why the company continues to stand out. The business generated $5.7 billion in net sales, up 4% from last year. Gross profit climbed 5% to $1.3 billion. That kind of steady growth tends to matter more in a mixed IT spending environment.
Management pointed to strengths across several areas. Government and education customers benefited from CDW’s deep experience in those markets. Small business was a bright spot, delivering double-digit growth in both revenue and gross profit. Demand for AI workstations among smaller firms picked up during the quarter. The corporate segment also held up well. Revenue rose at a mid-single-digit pace, while gross profit grew in the low single digits. Security and cloud projects led the way.
Looking ahead, management reaffirmed its 2025 outlook. CDW Corporation (NASDAQ:CDW) expects the US IT market to grow in the low single digits and believes it can outperform by 200 to 300 basis points. Gross profit in the second half of the year is still expected to be slightly higher than the first half, though the split should be less balanced than the historical 48% and 52% pattern. Gross margins in 2025 are expected to stay roughly in line with 2024.
CDW Corporation (NASDAQ:CDW) is an American multi-brand provider of IT products and services. It serves customers across business, government, education, and healthcare.
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