Is CDW short-term consolidation near $138 coming next?

$CDW Corp(CDW)$

CDW Corporation(CDW) Jumps +9.45%: Tech Distributor Eyes $140+ as Bullish Momentum Returns

Latest Close Data:

$CDW closed at $138.08 on 2026-02-04, surging +9.45% ($11.92). This move brings it closer to its recent high of $140.56, though still ~38% below its 52-week high of $222.92.

Core Market Drivers:

The significant single-day rally appears driven by a potential rebound in enterprise IT spending optimism and technical oversold conditions.
As a major IT solutions distributor, CDW's performance is highly sensitive to corporate capital expenditure cycles.

Technical Analysis:

The surge was accompanied by high volume (3.05M shares, VR 1.57), confirming strong buying interest.
The MACD shows a powerful bullish crossover, with the histogram turning significantly positive at +2.08, indicating accelerating upward momentum.
The 6-day RSI spiked to 79.56, entering overbought territory, which suggests a potential for a short-term pullback or consolidation.

Key Price Levels:

Primary Support: $126.08 (Previous resistance turned support).
Immediate Pivot: $138.08 (Today's close, key for continuation).
Strong Resistance: $140.56 (Today's high & near-term target).

Valuation Perspective:

The stock trades at a Forward P/E of 12.02, which is significantly below its historical average of 19.26 and the -1 Std. Dev. of 16.13, suggesting the stock is deeply undervalued relative to its own history.

Analyst Targets:

According to 11 analysts, the average price target is $178.01 (upside of ~29%). Sentiment is bullish with 2 Strong Buy, 6 Buy, and 5 Hold recommendations.

Weekly Outlook:

Expect consolidation near the $138-$141 zone in the coming sessions after the sharp run-up.

A sustained break above $141 could open the path towards $150. A failure to hold $135 may see a retest of the $126 support level.

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