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Reasons to Retain Xerox (XRX) Stock in Your Portfolio For Now
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Xerox Holdings Corporation’s (XRX - Free Report) bottom line is benefiting from "Project Own It," an enterprise-wide transformation initiative aimed at increasing productivity and operational efficiency, reducing costs, as well as realigning its business to changing market conditions.
The company’s earnings are expected to increase by 19.2% in 2022 and by 22.2% in 2023, year over year.
Factors That Auger Well
"Project Own It” is contributing significantly toward freeing up capital for investment. Through this initiative, the company exceeded gross savings of $375 million in 2021 and expects $300 million of gross cost savings in 2022.
Xerox’s ongoing investments in Xerox Business Solutions, indirect market channels and European sales channels are helping it expand its small and mid-sized (“SMB”) market. The company is expanding its offerings through the inclusion of cyber security and robotic process automation solutions. It is expanding its IT Services business geographically to strengthen its foothold in the SMB market.
Xerox has a post-sale driven business model that provides significant recurring revenues and cash generation. Around 78% of the company’s total revenues in 2020 were associated with contracted services, equipment maintenance services, consumable supplies and financing. This business model supports strong cash flows that help the company make strategic investments and penetrate markets with high growth potential.
Some Risks
Xerox has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $1.8 billion compared with the long-term debt level of $3.6 billion.
Zacks Rank and Stocks to Consider
DocuSign currently carries a Zacks Rank #3 (Hold).
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 77.6% in the past year.
NV5 Global also carries a Zacks Rank #1. The company has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.
NV5 Global’s shares have surged 44.6% in the past year. The company has a long-term earnings growth of 14.2%.
Clean Harbors carries a Zacks Rank #1. The company pulled off a trailing four-quarter earnings surprise of 43.2%, on average.
CLH’s shares have jumped 24% in the past year.
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Reasons to Retain Xerox (XRX) Stock in Your Portfolio For Now
Xerox Holdings Corporation’s (XRX - Free Report) bottom line is benefiting from "Project Own It," an enterprise-wide transformation initiative aimed at increasing productivity and operational efficiency, reducing costs, as well as realigning its business to changing market conditions.
The company’s earnings are expected to increase by 19.2% in 2022 and by 22.2% in 2023, year over year.
Factors That Auger Well
"Project Own It” is contributing significantly toward freeing up capital for investment. Through this initiative, the company exceeded gross savings of $375 million in 2021 and expects $300 million of gross cost savings in 2022.
Xerox’s ongoing investments in Xerox Business Solutions, indirect market channels and European sales channels are helping it expand its small and mid-sized (“SMB”) market. The company is expanding its offerings through the inclusion of cyber security and robotic process automation solutions. It is expanding its IT Services business geographically to strengthen its foothold in the SMB market.
Xerox Holdings Corporation Revenue (TTM)
Xerox Holdings Corporation revenue-ttm | Xerox Holdings Corporation Quote
Xerox has a post-sale driven business model that provides significant recurring revenues and cash generation. Around 78% of the company’s total revenues in 2020 were associated with contracted services, equipment maintenance services, consumable supplies and financing. This business model supports strong cash flows that help the company make strategic investments and penetrate markets with high growth potential.
Some Risks
Xerox has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $1.8 billion compared with the long-term debt level of $3.6 billion.
Zacks Rank and Stocks to Consider
DocuSign currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , NV5 Global (NVEE - Free Report) and Clean Harbors (CLH - Free Report) .
Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy). The company has a long-term earnings growth of 6.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 77.6% in the past year.
NV5 Global also carries a Zacks Rank #1. The company has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.
NV5 Global’s shares have surged 44.6% in the past year. The company has a long-term earnings growth of 14.2%.
Clean Harbors carries a Zacks Rank #1. The company pulled off a trailing four-quarter earnings surprise of 43.2%, on average.
CLH’s shares have jumped 24% in the past year.