QUAD Should I Buy
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Quad/Graphics Inc (QUAD) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The stock is undervalued based on analysts' ratings, has a positive revenue mix shift, and demonstrates durable free cash flow growth. Despite short-term volatility in the print industry, the company's strategic moves, such as implementing surcharges to offset rising costs, show resilience. The technical indicators suggest bullish momentum, and the stock has potential for moderate gains in the next month.
The stock is in a bullish trend with SMA_5 > SMA_20 > SMA_200. The MACD histogram is positive at 0.0627, suggesting upward momentum, though it is contracting. RSI_6 at 85.629 indicates the stock is overbought. Key resistance levels are R1: 7.459 and R2: 7.686, while support levels are S1: 6.726 and S2: 6.499.
Analysts initiated a Buy rating with price targets of $9.80 and $10, citing undervaluation and durable free cash flow growth.
Implementation of surcharges to offset rising costs demonstrates proactive management.
Stock has a 60% chance of gaining 5.31% in the next month.
The print industry is in secular decline, which may limit long-term growth.
Revenue dropped by 10.98% YoY in Q4 2025, reflecting challenges in the core business.
In Q4 2025, revenue declined by 10.98% YoY to $630.6M, but net income increased significantly by 136.17% YoY to $11.1M. EPS also rose by 120% YoY to 0.22, indicating improved profitability despite a drop in gross margin to 18.6% (-3.02% YoY).
Benchmark initiated coverage with a Buy rating and a $10 price target, citing undervaluation and a positive revenue mix shift. Rosenblatt raised the price target to $9.80 from $8.20, maintaining a Buy rating.
