Is DXC a Smart Investment Choice?

Investment management company Miller Value Partners recently released its Q2, 2022 investment letter, a copy of which can be downloaded here. The firm faced notable challenges due to continued volatility in the last couple of years. In the second quarter, Miller Opportunity fund was down by -29.3%, extending its first half return to -31.08% net of fees. Over the last 10 years, the fund generated an annualized return of 11.83%. Take a look at the fund’s top 5 holdings to have an idea about their best picks for 2022.

In the Q2 2022 investment letter, the firm analyzed and explained the reasons for the underperformance of the fund. The letter discussed stocks like DXC Technology Company (NYSE:DXC), an information technology services and solutions company that has a market capitalization of $7.278 billion. The stock of DXC Technology Company (NYSE:DXC) closed at $31.69 per share on 27 July 2022. DXC Technology Company (NYSE:DXC) had a return of 4.55% for the past month whereas its 12-month return dropped to -22.08%.

Here is what Miller Value Partners specifically said about DXC Technology Company (NYSE:DXC)  in its Q2 2022 investor’s letter:

“At DXC (NYSE:DXC), CEO Mike Salvino has massively improved the topline, margins and free cash flow. At 7x, the company believes its undervalued (we agree!) so it’s buying back a significant amount of stock. Next fiscal year it expects to generate $1.5B in free cash flow, which equates to a 24% yield at the current $6.3B market cap.”

Pixabay/Public Domain

Our research shows that DXC Technology Company (NYSE:DXC)  underperformed and the stock isn’t on the list of 30 Most Popular Stocks Among Hedge Funds. DXC Technology Company (NYSE:DXC)  was in 27 hedge fund portfolios in Q1,2022 and in Q4,2021. DXC Technology Company (NYSE:DXC)  shares lost 19.55% of their value over the last 52 weeks.

We published another article in February on DXC Technology Company (NYSE:DXC). Please check out our hedge fund investor letters 2022 page for more investor letters from hedge funds and other leading investors.

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