As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the it distribution & solutions industry, including Avnet (NASDAQ: AVT) and its peers.

IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement.

The 8 it distribution & solutions stocks we track reported a softer Q4. As a group, revenues missed analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.1% since the latest earnings results.

Avnet (NASDAQ: AVT)

With a century-long history of adapting to technological evolution, Avnet (NASDAQ: AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components.

Avnet reported revenues of $5.66 billion, down 8.7% year on year. This print exceeded analysts’ expectations by 1.6%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EPS estimates.

Unsurprisingly, the stock is down 1.8% since reporting and currently trades at $51.45.

Read our full report on Avnet here, it’s free.

Best Q4: CDW (NASDAQ: CDW)

Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ: CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.

CDW reported revenues of $5.19 billion, up 3.3% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates.

CDW pulled off the biggest analyst estimates beat among its peers. The stock is down 21.5% since reporting. It currently trades at $156.66.

Is now the time to buy CDW? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: ePlus (NASDAQ: PLUS)

Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.

ePlus reported revenues of $511 million, flat year on year, falling short of analysts’ expectations by 7.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 23% since the results and currently trades at $62.38.

Read our full analysis of ePlus’s results here.

TD SYNNEX (NYSE: SNX)

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

TD SYNNEX reported revenues of $14.53 billion, up 4% year on year. This print missed analysts’ expectations by 1.7%. It was a softer quarter as it also logged a miss of analysts’ EPS estimates.

TD SYNNEX scored the fastest revenue growth among its peers. The stock is down 11.9% since reporting and currently trades at $110.51.

Read our full, actionable report on TD SYNNEX here, it’s free.

Ingram Micro (NYSE: INGM)

Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.

Ingram Micro reported revenues of $13.34 billion, up 2.5% year on year. This number beat analysts’ expectations by 1.2%. Zooming out, it was a slower quarter with EPS guidance for next quarter missing analysts' estimates.

The stock is down 17.2% since reporting and currently trades at $17.34.

Read our full, actionable report on Ingram Micro here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting econosmic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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