This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Bargain Bin Stocks to Buy in March

Stocks in this article: SPLSTAPXRXGMGLW

Xerox (XRX) is a very different company today than it was just a few years ago. In that short time, the firm has distanced itself from its legacy copier business, adding lucrative services like document management to its repertoire. The transition hasn't been without speed bumps, though, and that's a big part of the reason why XRX trades for a paltry price-to-book ratio of 1.03.

>>5 Stocks With Big Insider Buying

Printing has become commoditized in the last few years. Print quality has essentially become the same across most major black and white laser printer manufacturers, so Xerox has focused its resources on areas where it can build an economic moat. Today, Xerox earns just 40% of sales from printer and copier sales. Between document management, business services, and consumables like toner, Xerox earns the majority of its sales and that's helped shove net margins into the mid-single digits. As the legacy business becomes a smaller piece of the puzzle, margins should continue to grow.

Xerox does have a noticeable amount of leverage on its balance sheet -- approximately $6 billion worth of net long-term debt. But that number has come down in each of the last several years, as the firm works to lighten its income statement load each quarter. Between strong momentum and a cheap price tag (XRX currently trades for just 11.8 times earnings), value-conscious investors would do well to pay attention to Xerox's new business.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,192.11 +217.80 1.28%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,568.5550 +19.3290 0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs