Quad/Graphics (QUAD) Has Fallen 65% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Quad/Graphics Inc. (NYSE:QUAD) stock. In its Income Strategy Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Quad/Graphics Inc. (NYSE:QUAD) stock. Quad/Graphics Inc. (NYSE:QUAD) engages in the provision of print solutions, media solutions, and logistics services.

On July 17, 2019, Miller Value Partners had released its Income Strategy Q2 2019 investor letter. The investment firm said that Quad/Graphics Inc. (NYSE:QUAD) was one of the biggest detractors to its performance in Q2 2019. Quad/Graphics Inc. (NYSE:QUAD) stock has posted a return of -64.7% in the trailing one year period, underperforming the S&P 500 Index which returned 15.1% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Quad/Graphics Inc. (NYSE:QUAD) stock has fallen by 26.8%.

Let’s take a look at comments made by Miller Value Partners about Quad/Graphics Inc. (NYSE:QUAD) stock in the Q2 2019 investor letter.

“Quad Graphics (QUAD) fell -31.53% during the period despite posting solid Q1 results where revenues of $1.0B topped estimates of $980M and EBITDA of $70M was in-line. The company maintained their $0.30/share dividend (15.8% annualized yield). Share price weakness stemmed from the Department of Justice filing an antitrust lawsuit seeking to block Quad’s proposed acquisition of LSC Communications (LKSD), alleging the deal would eliminate their principal competitor.”

Roman Samborskyi/Shutterstock.com

In Q1 2020, the number of bullish hedge fund positions on Quad/Graphics Inc. (NYSE:QUAD) stock decreased by about 23% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Quad’s growth potential. Our calculations showed that Quad/Graphics Inc. (NYSE:QUAD) 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 scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost precious metals prices. So, we are checking out this junior gold mining stock. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. 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.