Computacenter Stock Upside

 Computacenter Stock Upside

Computacenter: This FTSE 100 Stock Has Gained 43.7%

Computacenter (CCC) is a UK stock that has outperformed Rolls-Royce. So for those who are looking for a tech sector stock, Computacenter is worth considering.

Over the past year, Computacenter stock has gained 108.6% upside. This performance has made it one of the best performers of the FTSE 100.

Computacenter Has Outperformed Rolls-Royce

During the same period, Rolls-Royce stock only gained 43.7%. So, it is clear that Computacenter has outperformed in the short-term. But if we look at the longer run (several years), Rolls-Royce remains the winner.

This also makes one wonder why Computacenter stock is trending higher. Computacenter is basically an IT service provider and equipment company. Its main business is technology sourcing. In which it procures and distributes servers, laptops, PC, and data center kits for businesses.

The revenue jumped by 33% last year and touched 9.2 billion. Most of the growth came from hyperscalers in the North American region. The other sectors of Computacenter also benefited from high cybersecurity and AI demand.

However, the only downside is that Computacenter's dividend yield is 1.53%. This might be off-putting for dividend investors. Despite this, Computacenter stock has delivered great capital gains.

As things stand right now, Computacenter shares are not looking cheap. They are trading at a forward P/E of 21. So, that's a key thing that can stop many investors from buying Computacenter stock.

There's no doubt that Computacenter is a great stock. It also provides exposure to AI, which can be a great thing for investors.

But it is better to wait for the stock price to come down a bit. That will lower the P/E multiple and make it more attractive. Another way to lower the P/E multiple would be a big boost in Computacenter's earnings.

Either way, Computacenter stock is a good stock, but investors should wait for it to come down to a more reasonable valuation.

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