Why You Should Retain Xerox (XRX) in Your Portfolio Now
Xerox Holdings Corporation XRX has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s earnings are anticipated to register growth of 8% and 30.2% in 2023 and 2024, respectively.
Factors That Bode Well
Xerox’s ongoing investments in Xerox Business Solutions, indirect market channels and European sales channels are helping it to expand its small and mid-sized (SMB) market. The company is expanding its offerings through the inclusion of cyber security and robotic process automation solutions and expanding its IT Services business geographically to strengthen its foothold in the SMB market.
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.
Some Risks
Xerox’s current ratio at the end of the fourth quarter of 2022 was pegged at 1.23, lower than the current ratio of 1.66 reported at the end of the prior-year quarter. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Xerox Holdings Corporation EPS Diluted (TTM)
Xerox Holdings Corporation eps-diluted-ttm | Xerox Holdings Corporation Quote
Zacks Rank and Stocks to Consider
Xerox currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group CAR and ICF International ICFI.
Avis Budget currently carries a Zacks Rank #2 (Buy). CAR 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 (Strong Buy) or 2, offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
CAR delivered a trailing four-quarter earnings surprise of 78%, on average.
ICF International sports a Zacks Rank #1 at present. ICFI’s 2023 revenues and earnings are expected to have gained 10.6% and 9.2% year over year, respectively.
ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Xerox Holdings Corporation (XRX) : Free Stock Analysis Report
ICF International, Inc. (ICFI) : Free Stock Analysis Report
