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Xerox (XRX) to Gain From Document Systems Buyout: Here's How

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Xerox Holdings Corporation (XRX - Free Report) announced yesterday that it has snapped up California-based document solutions provider Document Systems. Financial terms of the deal have been kept under wraps.

The company has been on an acquisition spree to increase its penetration in existing markets. Document Systems is its third buyout in North America followed by Groupe CT (acquired last month) and Digitex (purchased in March 2020). Document Systems will now operate under the Xerox Business Solutions banner.

To Strengthen Foothold in the US SMB Market

The buyout is aimed at accelerating Xerox’s push into the small- and mid-size business (“SMB”) market through integrating the company’s portfolio of workplace solutions for SMBs with Document Systems' document management expertise. It will help Xerox provide solutions to SMBs that are focusing on automation, digitization and remote IT support amid the pandemic.

Joanne Collins Smee, chief commercial, SMB and channels officer at Xerox, said, “As part of Xerox Business Solutions (XBS), Document Systems' document management expertise will help us elevate the customer experience, improve productivity and power growth for SMBs."

Notably, Xerox’s shares have gained 30% over the past year, underperforming the 34.1% growth of the Zacks S&P 500 composite and the 65.6% rally of the industry it belongs to.

Zacks Rank and Stocks to Consider

Xerox currently carries a Zacks Rank #3 (Hold).

Investors can consider stocks like Equifax (EFX - Free Report) , Cross Country Healthcare (CCRN - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The long-term expected earnings per share (three to five years) growth rate for Equifax, Cross Country Healthcare and Charles River is pegged at 14%, 10.5% and 15.5%, respectively.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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