Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-a ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights PC Connection (CNXN) as a strong value stock based on various valuation metrics [1][2][8]. Valuation Metrics - PC Connection (CNXN) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The Forward P/E ratio for CNXN is 18.15, which is slightly lower than the industry average of 18.27. Over the past year, CNXN's Forward P/E has ranged from 15.13 to 21.07, with a median of 18.13 [4]. - CNXN's PEG ratio stands at 1.82, comparable to the industry average of 1.83. The PEG ratio has fluctuated between 1.52 and 2.11 over the last 12 months, with a median of 1.84 [5]. - The P/B ratio for CNXN is 2.06, which is attractive compared to the industry's average P/B of 2.07. The P/B ratio has varied from 1.68 to 2.26 in the past year, with a median of 2 [6]. - CNXN's P/CF ratio is 19.17, which is solid against the industry average of 19.31. This ratio has ranged from 15.24 to 21.04 over the past 52 weeks, with a median of 18.29 [7]. Investment Outlook - The combination of these valuation metrics suggests that PC Connection is likely undervalued, making it one of the strongest value stocks in the market, especially considering its earnings outlook [8].

Financial Data and Key Metrics Changes - Connection achieved record net income of $26.2 million, an increase of 32.8% compared to $19.7 million in Q2 2023 [7] - Diluted earnings per share were $0.99, reflecting a 32% increase from $0.75 in Q2 2023 [7] - Consolidated net sales were $736.5 million, a slight increase of 0.4% year-over-year [7] - Gross profit increased by 6.9% to $136.5 million, with gross margins up 112 basis points to 18.5% [7][11] Business Line Data and Key Metrics Changes - Business Solutions segment net sales were $278.2 million, up 6.6% year-over-year, with gross profit increasing by 8.1% [8] - Public Sector Solutions segment net sales decreased by 14% to $159.5 million, while gross profit increased by 3% [9] - Enterprise Solutions segment net sales rose by 4.1% to $298.8 million, with gross profit up 7.2% [10] Market Data and Key Metrics Changes - Manufacturing revenue increased by 13% year-over-year, driven by productivity gains and security needs [15] - Healthcare revenue grew by 4% due to major software and system upgrades [15] - Financial Services revenue increased by 15% year-over-year, attributed to improved IT system interoperability [15] Company Strategy and Development Direction - The company is focused on strengthening AI capabilities through the Connection Helix initiatives, targeting the SMB sector for growth opportunities [16] - Connection aims to connect customers with technology that enhances growth and productivity while navigating the complex IT landscape [18] - The company anticipates modest improvements in performance for the remainder of 2024, expecting to outperform the IT market growth rate by 200 basis points [18] Management's Comments on Operating Environment and Future Outlook - Management noted cautious investment in infrastructure due to macroeconomic uncertainties and the upcoming election year [17] - The company is optimistic about the second half of 2024, expecting improvements in Q3 over Q2 [27] - Management highlighted the importance of device refresh cycles, particularly around Windows 11, with expectations for increased adoption of next-generation PCs [21] Other Important Information - The company paid a quarterly dividend of $0.10 per share and repurchased shares worth $3.6 million during the quarter [12] - Cash generated from operations for the first half of 2024 was $95.7 million, with a decrease in accounts receivable and an increase in inventory [13] Q&A Session Summary Question: Insights on Device Refresh Cycle - Management indicated that the Device Refresh is primarily driven by Windows 11, with early adopters noted but significant AI PC adoption expected later [21] Question: Trends and Q3 Outlook - Management observed a strong finish to Q2 with a spike in shipments, and they expect Q3 to be historically strong with large projects in the funnel [26][27] Question: Impact of CrowdStrike Issues - The company was not directly affected by CrowdStrike issues but used the opportunity to support clients, enhancing customer relationships [28] Question: Sustainability of Software and Storage Growth - Management expressed uncertainty about the timing of purchase orders but remains well-positioned for future growth in the enterprise business [29]

PC Connection (CNXN) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 20.48%. A quarter ago, it was expected that this information technology services provider would post earnings of $0.64 per share when it actually produced earnings of $0.50, delivering a surprise of -21.88%. Over the l ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value CNXN Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934* For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fr ...

Exhibit 99.1 Investor Relations Contact: Thomas Baker, 603.683.2505 Senior Vice President, CFO, and Treasurer tom@connection.com CONNECTION (CNXN) REPORTS SECOND QUARTER 2024 RESULTS Record Quarter for Net Income and Earnings per Share SECOND QUARTER SUMMARY: ● Net sales: $736.5 million, increase of 0.4% y/y ● Gross profit: $136.5 million, up 6.9% y/y ● Gross margin: 18.5%, up 112 basis points y/y ● Net income: $26.2 million, increase of 32.8% y/y ● Diluted EPS: $0.99, compared to $0.75 Merrimack, NH—July 3 ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2024 were $632 million, a decrease of 13.1% compared to the previous year [21] - Gross profit decreased by 3.5% to $118.1 million, but gross margins increased by 187 basis points to 18.7% [21] - Operating income was $13.5 million, down 25.7% year-over-year, with operating income as a percentage of net sales at 2.1% compared to 2.5% in the prior year [10] - Net income for Q1 was $13.2 million, a decrease of 7.4% from $14.2 million in the prior year [10][33] - Diluted earnings per share were $0.50, a decrease of 7.7% from $0.54 in Q1 2023 [84] Business Line Data and Key Metrics Changes - Public Sector Solutions net sales were $93.5 million, down 33.4% year-over-year, primarily due to the absence of large projects that occurred in Q1 2023 [11] - Gross profit for the Public Sector segment was $15 million, a decrease of 26.3%, but gross margin increased by 156 basis points to 16% [12] - Enterprise Solutions segment net sales were $282.7 million, down 10% year-over-year, while gross profit increased by 1.6% to $42.7 million, with gross margin rising by 172 basis points to 15.1% [12] Market Data and Key Metrics Changes - The IT industry is undergoing rapid transformation driven by advancements in AI, cloud computing, and edge technologies, but customers remain cautious with their AI investments [28] - In retail, there was a year-over-year decline, but sequential quarterly revenue growth was observed, indicating momentum [45] - Financial Services revenue and gross profit increased by 8% year-over-year, while healthcare saw a significant rise in proposal requests for services and cybersecurity [46] Company Strategy and Development Direction - The company is focused on helping customers prepare for AI initiatives and expects stronger performance in the second half of the year [20] - The launch of the Helix Center for Applied AI Robotics is seen as a competitive advantage in the AI space [39] - The company remains committed to investing in both organic and inorganic growth opportunities while returning cash to shareholders through dividends and stock repurchases [36] Management's Comments on Operating Environment and Future Outlook - Management noted that customer spending on new technology is uncertain, but they are optimistic about returning to normalized growth rates in the second half of 2024 [42] - The company anticipates that the adoption of AI solutions will drive demand for additional infrastructure, storage, compute, and cybersecurity solutions [38] - Management highlighted that the timing of technology rollouts is becoming clearer, with customers preparing for Windows 11 and AI applications [52] Other Important Information - The Board authorized an additional $40 million increase to the existing share repurchase program, bringing the total available for repurchases to $72.1 million [25] - Cash flow from operations improved by $37.8 million year-over-year to $57.3 million [25] - The effective tax rate for Q1 was 27%, up from 26.8% due to changes in state tax rates [32] Q&A Session Summary Question: Sales cadence throughout the quarter and outlook for Q2 - Management indicated that revenue was approximately 34% in March, lower than the typical range, due to economic apprehension [50] - For Q2, operating income is expected to be flat to low single digits year-over-year, with gross profit also anticipated to see low single-digit growth [51] Question: Acquisitions and valuation multiples - The company is still looking for acquisition opportunities and has the balance sheet to support this, with M&A activity starting to heat up [64] Question: Guidance for gross profit dollar growth for the year - Management expects low single-digit growth in gross profit for the year, with Q2 looking weaker than initially expected [67] Question: Impact of AI-enabled PCs on business - The next generation of AI PCs is expected to drive demand, with a focus on security and performance improvements [74]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Former name, former address and former fiscal year, if changed since last report: N/A Table of Contents TABLE OF CONTENTS PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (amounts in thousands) 1 Table of Contents PC CONNECTION, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (amounts in thousands, except per share data) 2 PC CONNECTION, INC. AND SUBSIDIARIES ...

Exhibit 99.1 Investor Relations Contact: Thomas Baker, 603.683.2505 Senior Vice President, CFO, and Treasurer tom@connection.com CONNECTION (CNXN) REPORTS FIRST QUARTER 2024 RESULTS FIRST QUARTER SUMMARY: ● Net sales: $632.0 million, decrease of 13.1% y/y ● Gross profit: $118.1 million, down 3.5% y/y ● Gross margin: 18.7%, up 187 basis points y/y ● Net income: $13.2 million, decrease of 7.4% y/y ● Diluted EPS: $0.50, compared to $0.54 Merrimack, NH—May 1, 2024—Connection (PC Connection, Inc.; NASDAQ: CNXN), ...

MERRIMACK, N.H.--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare, and education markets, is pleased to announce the fourth annual IT Superhero Awards. The awards program recognizes IT professionals, nominated by their colleagues, for going above and beyond the call of duty to save the day for their team. The IT Superhero Awards program is open to IT professionals from organizations of all sizes and indu ...