Is Science Applications International Corp. (SAIC) A Wise Investment Choice?

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned 23.2% in 2021. This compares to a 28.3% return for the Russell 2000 Value Index during the year. During the fourth quarter, the Russell 2000 Value Index rallied sharply early, fell off sharply from early November through mid-December, and then rallied during the last two weeks of the year to finish up 4.4%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

FPA Queens Road Small Cap Value Fund, in its Q4 2021 investor letter, mentioned Science Applications International Corporation (NYSE: SAIC) and discussed its stance on the firm. Science Applications International Corporation is a Reston, Virginia-based computers and information technology company with a $5.0 billion market capitalization. SAIC delivered a 7.05% return since the beginning of the year, while its 12-month returns are up by 3.95%. The stock closed at $89.48 per share on March 03, 2022.

Here is what FPA Queens Road Small Cap Value Fund has to say about Science Applications International Corporation in its Q4 2021 investor letter:

“Science Applications International Corp., a federal information technology contractor, declined during the year. The company which derives 98% of its revenue from the federal government, is a
slow-growing, consistently profitable IT provider that supplements organic growth with add-on acquisitions. It operates in a competitive, low-margin business, but given the company’s visibility, entrenched position, and low valuation, we remain positive on the company’s outlook.”

Our calculations show that Science Applications International Corporation (NYSE: SAIC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SAIC was in 20 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. Science Applications International Corporation (NYSE: SAIC) delivered a 4.85% return in the past 3 months.

In February 2022, we published an article that includes SAIC in the 10 Best Dividend Stocks According to Anthony Bozza’s Lakewood Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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