CDW (US:CDW) ZACKSยท2025-07-29 17:00Core Viewpoint - CDW has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - Rising earnings estimates are strongly correlated with near-term stock price movements, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [4][5]. CDW's Earnings Outlook - CDW is expected to earn $9.73 per share for the fiscal year ending December 2025, with no year-over-year change, but analysts have raised their estimates by 1.4% over the past three months [8]. - The upgrade to Zacks Rank 2 reflects an improvement in CDW's underlying business, which is likely to attract investor interest and push the stock higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].