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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Xerox (XRX - Free Report) . XRX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.83. This compares to its industry's average Forward P/E of 15.90. XRX's Forward P/E has been as high as 20.86 and as low as 6.69, with a median of 9.44, all within the past year.
Finally, we should also recognize that XRX has a P/CF ratio of 5.09. 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. XRX's P/CF compares to its industry's average P/CF of 15.37. Within the past 12 months, XRX's P/CF has been as high as 7.56 and as low as -6.19, with a median of 5.55.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Xerox is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, XRX feels like a great value stock at the moment.
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Are Investors Undervaluing Xerox (XRX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Xerox (XRX - Free Report) . XRX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.83. This compares to its industry's average Forward P/E of 15.90. XRX's Forward P/E has been as high as 20.86 and as low as 6.69, with a median of 9.44, all within the past year.
Finally, we should also recognize that XRX has a P/CF ratio of 5.09. 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. XRX's P/CF compares to its industry's average P/CF of 15.37. Within the past 12 months, XRX's P/CF has been as high as 7.56 and as low as -6.19, with a median of 5.55.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Xerox is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, XRX feels like a great value stock at the moment.