Trade-Ideas LLC identified

Xerox Corporation

(

XRX

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Xerox Corporation 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 $173.2 million.
  • XRX is up 22.7% 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 2.7%. XRX has a PE ratio of 21. Currently there are 3 analysts that rate Xerox Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Xerox Corporation has been 13.6 million shares per day over the past 30 days. Xerox has a market cap of $10.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.95 and a short float of 1.6% with 1.34 days to cover. Shares are down 24.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Xerox Corporation as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, 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 deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.80, 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 0.91 is somewhat weak and could be cause for future problems.
  • Despite the weak revenue results, XRX has outperformed against the industry average of 27.0%. Since the same quarter one year prior, revenues slightly dropped by 7.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to $271.00 million or 54.45% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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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