Buy DXC Technology (DXC) Stock for Massive Upside Ahead

Miller Value Partners recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Miller Value Partners Opportunity Equity Fund posted a return of -38.4% for the quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned -19.6% 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 the stock market crash.

In the said letter, Miller Value Partners highlighted a few stocks and DXC Technology Co (NYSE:DXC) is one of them. DXC Technology provides digital information technology services and solutions. Year-to-date, DXC Technology Co (NYSE:DXC) stock gained 59.6% and on June 10th it had a closing price of $16.94. Here is what Miller Value Partners said:

“We’d also been considering DXC Technology prior to the panic. DXC is a global IT services business that’s been pressured as its core business, IT outsourcing, declined due to the cloud. The new CEO Mike Salvino, who previously ran Accenture’s outsourcing business, is very highly regarded and has triaged accounts to stabilize the business. He’s announced numerous asset sales, most recently the State and Local Health and Human Services business for $5B, which is more than the entire market cap of the company ($4B). At the current level of $15, the stock just looks too cheap at less than 3x what it is expected to earn the next couple years and with a 5.4% dividend yield. It’s relatively insulated from the coronavirus economic halt. We think this name has the potential to double as conditions normalize. With any success in turning around the business, there could be additional upside from there.”

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In Q1 2020, the number of bullish hedge fund positions on DXC Technology Co (NYSE:DXC) stock decreased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with 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.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.