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Xerox (XRX) Appreciates 12% in a Year: Here's What to Know
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Xerox Holdings Corporation (XRX - Free Report) has had an impressive run over the past year, gaining 11.7%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 64.8%. Its 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.
With Xerox implementing a more flexible cost base and operating model to expand margins and channelize investments toward margin-accretive growth opportunities, we expect around 31% year-over-year increase in adjusted EPS and 190 basis points expansion in adjusted operating margin in 2024.
Xerox has a post-sale-driven business model that provides significant recurring revenues and cash generation. Around 76% of the company’s total revenues in 2023 were associated with contractual print services, supplies and financing. This business model supports strong cash flows that help the company make strategic investments and penetrate markets with high growth potential. The 2023 acquisition of Advanced UK is helping Xerox in vertical integration, along with strengthening its foothold in the U.K.
The company’s current ratio (a measure of liquidity) at the end of fourth-quarter fiscal 2023 was pegged at 1.14. A current ratio of more than 1 often indicates that the company will be able to pay off its short-term obligations easily.
Zacks Rank and Other Stocks to Consider
Xerox currently sports a Zacks Rank #1 (Strong Buy).
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Xerox (XRX) Appreciates 12% in a Year: Here's What to Know
Xerox Holdings Corporation (XRX - Free Report) has had an impressive run over the past year, gaining 11.7%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 64.8%. Its 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.
Xerox Holdings Corporation Price
Xerox Holdings Corporation price | Xerox Holdings Corporation Quote
With Xerox implementing a more flexible cost base and operating model to expand margins and channelize investments toward margin-accretive growth opportunities, we expect around 31% year-over-year increase in adjusted EPS and 190 basis points expansion in adjusted operating margin in 2024.
Xerox has a post-sale-driven business model that provides significant recurring revenues and cash generation. Around 76% of the company’s total revenues in 2023 were associated with contractual print services, supplies and financing. This business model supports strong cash flows that help the company make strategic investments and penetrate markets with high growth potential. The 2023 acquisition of Advanced UK is helping Xerox in vertical integration, along with strengthening its foothold in the U.K.
The company’s current ratio (a measure of liquidity) at the end of fourth-quarter fiscal 2023 was pegged at 1.14. A current ratio of more than 1 often indicates that the company will be able to pay off its short-term obligations easily.
Zacks Rank and Other Stocks to Consider
Xerox currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are Barrett Business Services (BBSI - Free Report) and Jamf (JAMF - Free Report) .
Barrett Business Services carries a Zacks Rank of 2 (Buy) at present. BBSI has a long-term earnings growth expectation of 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BBSI delivered a trailing four-quarter earnings surprise of 77.7%, on average.
Jamf carries a Zacks Rank of 2 at present. JAMF has a long-term earnings growth expectation of 22.5%.
JAMF delivered a trailing four-quarter earnings surprise of 49.4%, on average.