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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Xerox (XRX - Free Report) . XRX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.28 right now. For comparison, its industry sports an average P/E of 14.93. Over the past 52 weeks, XRX's Forward P/E has been as high as 20.86 and as low as 8.18, with a median of 10.18.
Finally, we should also recognize that XRX has a P/CF ratio of 6.06. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.69. XRX's P/CF has been as high as 7.56 and as low as -7.25, with a median of 5.01, all within the past year.
These are only a few of the key metrics included in Xerox's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, XRX looks like an impressive value stock at the moment.
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Should Value Investors Buy Xerox (XRX) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Xerox (XRX - Free Report) . XRX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.28 right now. For comparison, its industry sports an average P/E of 14.93. Over the past 52 weeks, XRX's Forward P/E has been as high as 20.86 and as low as 8.18, with a median of 10.18.
Finally, we should also recognize that XRX has a P/CF ratio of 6.06. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.69. XRX's P/CF has been as high as 7.56 and as low as -7.25, with a median of 5.01, all within the past year.
These are only a few of the key metrics included in Xerox's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, XRX looks like an impressive value stock at the moment.