CDW Corporation (CDW) Moved Higher Tied to Industry Tailwinds

Yahoo

4 days ago

Madison Investments, an investment advisor, released its 'Madison Large Cap Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) increased 3.1%, compared to a 10.9% gain for the S&P 500 index. In addition, please check the fund's top five holdings to know its best picks in 2025.
In its second quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions provider. The one-month return of CDW Corporation (NASDAQ:CDW) was 3.35%, and its shares lost 22.76% of their value over the last 52 weeks. On July 18, 2025, CDW Corporation (NASDAQ:CDW) stock closed at $179.59 per share, with a market capitalization of $23.649 billion.
Madison Large Cap Fund stated the following regarding CDW Corporation (NASDAQ:CDW) in its second quarter 2025 investor letter:
"Portfolio activity picked up in the second quarter. We initiated positions in Airbnb, CDW Corporation (NASDAQ:CDW) and Gartner and sold Berkshire Hathaway. CDW Corporation is a value-added reseller of IT hardware and software products to a broad array of small- and medium-sized customers. It partners with over 1,000 vendors to provide more than 100,000 products to its 250,000+ customers. With a dizzying breadth of products and services, CDW benefits from overall technology industry growth, without being heavily exposed to any individual product or technology trend. The company has an excellent track record of gaining share within its highly fragmented markets, which we expect will continue. Early in the second quarter, CDW's shares fell in response to the proposed tariffs, which if implemented, could lead to higher IT hardware prices and have an impact on near-term demand trends. However, as a value-added reseller without direct manufacturing exposure, we expect CDW's margins to be relatively insulated from the effects of higher costs. We also believe many of CDW's customers have maintained some of their IT hardware assets beyond their useful lives, and expect that there will be a bump in replacement demand in the near future."
An IT Executive reviewing blueprints and schematics for a hardware solution.
CDW Corporation (NASDAQ:CDW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the first quarter, which was 46 in the previous quarter. In the first quarter, CDW Corporation (NASDAQ:CDW) reported net sales of $5.2 billion, up 8% on an average daily sales basis. While we acknowledge the potential of CDW Corporation (NASDAQ:CDW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered CDW Corporation (NASDAQ:CDW) and shared Cooper Investors Global Equities Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
Connectez-vous pour accéder à votre portefeuille