Xerox Corporation (XRX): Today's Featured Consumer Durables Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Xerox Corporation ( XRX) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 1.9%. By the end of trading, Xerox Corporation fell 31 cents (-4.7%) to $6.36 on heavy volume. Throughout the day, 16.1 million shares of Xerox Corporation exchanged hands as compared to its average daily volume of 10.4 million shares. The stock ranged in price between $6.34-$6.62 after having opened the day at $6.58 as compared to the previous trading day's close of $6.67. Other companies within the Consumer Durables industry that declined today were: Mad Catz Interactive ( MCZ), down 10.1%, A. T. Cross Company ( ATX), down 8.3%, Global-Tech Advanced Innovations ( GAI), down 6.6%, and LSI Industries ( LYTS), down 6.2%.
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Xerox Corporation provides business process and information technology (IT) outsourcing, and document management services worldwide. Xerox Corporation has a market cap of $8.39 billion and is part of the consumer goods sector. The company has a P/E ratio of 7.4, below the S&P 500 P/E ratio of 17.7. Shares are down 16.2% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Xerox Corporation a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Xerox Corporation as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer durables industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the consumer durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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