CDW (CDW) has drawn fresh investor attention after reporting second quarter 2026 results, including sales of US$6,572.2m and net income of US$274.4m, along with a declared quarterly dividend of US$0.630 per share.

At a share price of US$134.97, CDW has recently seen a 90 day share price return of 27.08%, while the 1 year total shareholder return declined 17.90%. This suggests that recent momentum contrasts with weaker longer term outcomes.

If CDW’s recent move has you thinking about where else growth or reinvestment stories might emerge, it could be worth scanning 56 AI infrastructure stocks.

After a sharp 90 day rebound yet weaker multi year returns, CDW now presents a very different picture for existing holders and new buyers. Does the current valuation still leave enough upside to justify the risk?

Most Popular Narrative: 11.5% Undervalued

CDW's most widely followed narrative pegs fair value at $152.56, which sits above the recent $134.97 close and frames the current rebound in a different light.

Expansion of CDW's software, professional, and managed services capabilities, now core to both strategy and recent M&A focus, continues to elevate recurring revenue and expand margins, supporting resilient long-term earnings growth.

Want to understand why this narrative sees room above today’s price? It leans on steady revenue expansion, thicker margins, and a future earnings profile that assumes investors still pay up for that growth.

Result: Fair Value of $152.56 (UNDERVALUED)

However, CDW investors still need to weigh risks such as pressure on margins from lower margin hardware deals and the possibility that education and federal funding softens further.

Next Steps

If this mix of optimism and concern around CDW leaves you unsure, move quickly to review the underlying data and shape your own view with the 5 key rewards and 1 important warning sign

Looking for more investment ideas beyond CDW?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.