CDW Corporation : Continuation of the bullish trend
Entry price | Target | Stop-loss | Potential |
---|
US$43.71 |
US$55 |
US$43 |
+25.84% |
---|
The stock CDW, a company providing information technology solutions for commercial, government, education or health, continues its bullish rally started during July in order to test again its highs at USD 44.5.
The economic and financial situation of the company remains very strong as evidenced by the excellent Surperformance ratings. Growth forecasts of revenue from the Thomson Reuters consensus are very encouraging with an expected increase of 8% for the current year to 13 billion. On the other hand, debt of the company is absorbed quickly, leverage contracting estimated at 2.66 in 2015 against 3.14 in 2014. Sales are up +8.8% for this year. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates. The last EPS was at USD 1.42.
From a technical point of view, the stock operates in an upward trend for several years. The proper orientation of the moving averages confirms the soundness of this trend.
Thus, taking into account the strong fundamentals of the company and the technical configuration, investors can place an order at the breakout of the upward trendline of USD 45.5. The objective will be set at USD 50 with a potential gain of 9%. A stop-loss is however recommended near the USD 43.
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