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Here's Why Investors Should Bet on Xerox (XRX) Stock Now
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Xerox Holdings Corporation (XRX - Free Report) has performed well in the past month and has the potential to increase momentum in the near term. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Why an Attractive Pick?
Share Price Appreciation: A glimpse at the company’s price trend reveals that the stock has had an impressive run lately. XRX returned 7% in the past month, which compares favorably with the 2.7% decline of the industry it belongs to.
Solid Rank & VGM Score: Xerox currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or #2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:Two estimates for the current year moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for the current year increased 27.3%.
Positive Earnings Surprise History: XRX has an impressive earnings surprise history. It outpaced the Zacks Consensus Estimate in three of the trailing four quartersand missed once, delivering an average earnings surprise of 57.7%.
Strong Growth Prospects: The Zacks Consensus Estimate for the company’s 2023 earnings of $1.54 indicates year-over-year growth of 15.3%. Moreover, earnings are expected to register 9.8% growth in fiscal 2025. The stock has a long-term expected earnings per share growth rate of 14.3%.
Growth Drivers: The company’s 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 the business to changing market conditions. "Project Own It” is contributing significantly toward freeing up capital for investment. Through this initiative, Xerox achieved gross savings of $2.2 billion from 2018 to 2022.
Xerox has a post-sale-driven business model that provides significant recurring revenues and cash generation. Around 77% of the company’s total revenues in 2022 were associated with contracted services, equipment maintenance services, consumable supplies and financing. This business model supports strong cash flows that help it to make strategic investments and penetrate markets with high growth potential.
GDOT currently sports a Zacks Rank of 1. For the second quarter of 2023, the Zacks Consensus Estimate for Green Dot’s revenues is pegged at $340.1 million, indicating a decline of 4.2% year over year. Earnings are expected to decrease 52.7% to 35 cents.
The company has an impressive earnings surprise history, beating the consensus mark in all the four trailing quarters. It has an average surprise of 37.3%.
MMS currently carries a Zacks Rank of 2. For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenues indicates growth of 6.1% year over year to $1.2 billion. Earnings are expected to increase 33.3% to $1.04.
The company has an impressive earnings surprise history, beating the consensus mark in three instances and missing once. It has an average surprise of 9.6%.
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Here's Why Investors Should Bet on Xerox (XRX) Stock Now
Xerox Holdings Corporation (XRX - Free Report) has performed well in the past month and has the potential to increase momentum in the near term. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Why an Attractive Pick?
Share Price Appreciation: A glimpse at the company’s price trend reveals that the stock has had an impressive run lately. XRX returned 7% in the past month, which compares favorably with the 2.7% decline of the industry it belongs to.
Xerox Holdings Corporation Price and Consensus
Xerox Holdings Corporation price-consensus-chart | Xerox Holdings Corporation Quote
Solid Rank & VGM Score: Xerox currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or #2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:Two estimates for the current year moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for the current year increased 27.3%.
Positive Earnings Surprise History: XRX has an impressive earnings surprise history. It outpaced the Zacks Consensus Estimate in three of the trailing four quartersand missed once, delivering an average earnings surprise of 57.7%.
Strong Growth Prospects: The Zacks Consensus Estimate for the company’s 2023 earnings of $1.54 indicates year-over-year growth of 15.3%. Moreover, earnings are expected to register 9.8% growth in fiscal 2025. The stock has a long-term expected earnings per share growth rate of 14.3%.
Growth Drivers: The company’s 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 the business to changing market conditions. "Project Own It” is contributing significantly toward freeing up capital for investment. Through this initiative, Xerox achieved gross savings of $2.2 billion from 2018 to 2022.
Xerox has a post-sale-driven business model that provides significant recurring revenues and cash generation. Around 77% of the company’s total revenues in 2022 were associated with contracted services, equipment maintenance services, consumable supplies and financing. This business model supports strong cash flows that help it to make strategic investments and penetrate markets with high growth potential.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Business Services sector are Green Dot (GDOT - Free Report) and Maximus (MMS - Free Report) .
GDOT currently sports a Zacks Rank of 1. For the second quarter of 2023, the Zacks Consensus Estimate for Green Dot’s revenues is pegged at $340.1 million, indicating a decline of 4.2% year over year. Earnings are expected to decrease 52.7% to 35 cents.
The company has an impressive earnings surprise history, beating the consensus mark in all the four trailing quarters. It has an average surprise of 37.3%.
MMS currently carries a Zacks Rank of 2. For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenues indicates growth of 6.1% year over year to $1.2 billion. Earnings are expected to increase 33.3% to $1.04.
The company has an impressive earnings surprise history, beating the consensus mark in three instances and missing once. It has an average surprise of 9.6%.