Trade-Ideas: Xerox (XRX) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified Xerox (XRX) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Xerox

(

XRX

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Xerox as such a stock due to the following factors:

  • XRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.7 million.
  • XRX is up 3.2% today from today's close.

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More details on XRX:

Xerox Corporation provides business process and document management solutions worldwide. The stock currently has a dividend yield of 3.3%. XRX has a PE ratio of 26. Currently there is 1 analyst that rates Xerox a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Xerox has been 6.9 million shares per day over the past 30 days. Xerox has a market cap of $9.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.05 and a short float of 2.1% with 3.59 days to cover. Shares are down 10.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Xerox as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.7%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 35.37% is the gross profit margin for XEROX CORP which we consider to be strong. Regardless of XRX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, XRX's net profit margin of 0.79% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to -$25.00 million or 122.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the IT Services industry and the overall market, XEROX CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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