Published on September 21st, 2021 📆 | 3114 Views ⚑0
Is DXC Technology (DXC) A Good Stock To Buy Now?
Miller Value Partners recently released its Q2 2021 Investor Letter, a copy of which you can download here. The Miller Opportunity Trust Class I gained 4.18%, underperforming its benchmark, the S&P 500 Index which returned 8.55% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and DXC Technology Co (NYSE:DXC) is one of them. DXC Technology Co (NYSE:DXC) is engaged in providing digital information technology (IT) services and solutions. In the last three months, DXC Technology Co (NYSE:DXC) stock lost 8%. Here is what the fund said:
“DXC Technology Company (DXC) continued to climb higher during the quarter gaining 24.57%. The company reported solid Fiscal Year 4th quarter (FY4Q) results with revenue of $4.385B beating consensus of $4.29B and earnings per share (EPS) of $0.74 ahead of expectations for $0.70. The company guided for fiscal 2022 revenue of $16.6-$16.8B, below the Street at $16.9B and adjusted EPS of $3.45-3.65, ahead of the consensus of $3.43. By FY2024, the company expects organic revenue growth of 1-3%, adjusted earnings before income and taxes (EBIT) margin of 10-11%, adjusted diluted EPS of $5.00-$5.25 and free cash flow (FCF) of $1.5B. Later in the month, the company held an investor day where management highlighted their confidence that they can hit all of their targets while also stressing the progress they have made on their turnaround to date.”
In July, we published an article revealing that DXC Technology Co (NYSE:DXC) was one of the 5 best stocks to buy according to billionaire Steve Cohen.
In Q1 2021, the number of bullish hedge fund positions on DXC Technology Co (NYSE:DXC) stock decreased by about 28% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in DXC’s growth potential. Our calculations showed that DXC Technology Co (NYSE:DXC) isn’t ranked among the 30 most popular stocks among hedge funds.
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Disclosure: None. This article is originally published at Insider Monkey.