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Xerox's (XRX) Stock Rises 10% in Six Months: Here's How
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Xerox Holdings Corporation (XRX - Free Report) has had an impressive run over the past six months. The stock has gained 10%, significantly outperforming the 5.6% rally of the industry it belongs to.
What’s Behind the Rally
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 the company make strategic investments and penetrate markets with high growth potential.
XRX recently acquired Advanced UK, a U.K.-based hardware and printing service provider. The acquisition is expected to help in Xerox’s vertical integration, along with strengthening its foothold in the U.K. The 2022 acquisition of Powerland has fortified Xerox’s IT services offerings in North America, which include cyber security, cloud, end-user computing and managed services. Another 2022 acquisition, Go Inspire, is helping the company to expand its global Digital Services presence in EMEA.
Zacks Rank and Other Stocks to Consider
Xerox currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the broader Business Service sector, which you may consider.
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, which reflects a decrease of 8.2% from the year-ago figure. Earnings are pegged at $5.71 per share for 2023, which is 14% above the year-ago figure. VRSK currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) presently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2024 revenues and earnings implies growth of 6.3% and 11.1% year over year, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings indicates a rise of 7.2% and 8.8% year over year, respectively.
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Xerox's (XRX) Stock Rises 10% in Six Months: Here's How
Xerox Holdings Corporation (XRX - Free Report) has had an impressive run over the past six months. The stock has gained 10%, significantly outperforming the 5.6% rally of the industry it belongs to.
What’s Behind the Rally
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 Holdings Corporation Price
.Xerox Holdings Corporation price | Xerox Holdings Corporation Quote
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 the company make strategic investments and penetrate markets with high growth potential.
XRX recently acquired Advanced UK, a U.K.-based hardware and printing service provider. The acquisition is expected to help in Xerox’s vertical integration, along with strengthening its foothold in the U.K. The 2022 acquisition of Powerland has fortified Xerox’s IT services offerings in North America, which include cyber security, cloud, end-user computing and managed services. Another 2022 acquisition, Go Inspire, is helping the company to expand its global Digital Services presence in EMEA.
Zacks Rank and Other Stocks to Consider
Xerox currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the broader Business Service sector, which you may consider.
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, which reflects a decrease of 8.2% from the year-ago figure. Earnings are pegged at $5.71 per share for 2023, which is 14% above the year-ago figure. VRSK currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) presently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2024 revenues and earnings implies growth of 6.3% and 11.1% year over year, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings indicates a rise of 7.2% and 8.8% year over year, respectively.