We came across a bullish thesis on CDW Corporation on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on CDW. CDW Corporation’s share was trading at $181.37 as of July 23rd. CDW’s trailing and forward P/E were 22.47 and 18.94 respectively according to Yahoo Finance.
An IT specialist meticulously customizing a software application aiding value-added resellers.
CDW is a resilient value-added reseller (VAR) of IT solutions, positioned for steady, recurring growth by consolidating share in the fragmented VAR market, with a particular focus on small and medium-sized businesses (SMBs). While IT resellers have pulled back in line with the broader tech sector earlier in the year and concerns persist about cloud computing displacing VARs’ higher-margin networking business, disintermediation risk is greater in the enterprise segment.
SMBs often lack the resources to vet the wide array of IT products and services, making them heavily reliant on VARs for expertise, product selection, and implementation. Moreover, vendors generally show little interest in building out direct sales capabilities to serve SMBs, reinforcing CDW’s critical intermediary role. The company’s model is capital-light and generates robust free cash flow, providing resilience through IT’s cyclical demand patterns.
Over time, CDW has outpaced overall IT spending growth as VARs continue to gain share from direct sales, demonstrating its ability to thrive amid technological transitions that historically raised disintermediation fears—from the shift to digital software, to software-as-a-service, to today’s cloud-driven landscape. Looking forward, CDW’s position as a trusted partner to SMBs and its disciplined execution support a path of mid- to high-single-digit growth.
With the VAR market still highly fragmented, the company’s scale, service breadth, and operational efficiency provide a durable competitive advantage, enabling continued market share gains and consistent free cash flow generation, offering investors a compelling combination of stability, growth, and resilience against industry structural shifts.
Previously, we covered a bullish thesis on Gartner, Inc. (IT) by Bulls On Parade in March 2025, which highlighted its dominance in tech research, resilient subscription revenues, and disciplined capital allocation. The company’s stock price has depreciated about 16.7% since our coverage as near-term headwinds weighed on results. The thesis still stands given Gartner’s entrenched model. Stock Analysis Compilation shares a similar view, emphasizing CDW’s SMB-focused growth in the fragmented VAR market.
