Xerox Corporation (XRX): Consumer Durables' Featured Underperformer Of The Day

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%. By the end of trading, Xerox Corporation fell 21 cents (-2.4%) to $8.55 on light volume. Throughout the day, 7.3 million shares of Xerox Corporation exchanged hands as compared to its average daily volume of 10.8 million shares. The stock ranged in price between $8.53-$8.73 after having opened the day at $8.66 as compared to the previous trading day's close of $8.76. Other companies within the Consumer Durables industry that declined today were: Movado Group ( MOV), down 10.5%, Furniture Brands International ( FBN), down 7.5%, Lifetime Brands ( LCUT), down 4%, and La-Z-Boy ( LZB), down 3.8%.
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Xerox Corporation provides business process and document management services worldwide. Xerox Corporation has a market cap of $10.6 billion and is part of the technology sector. The company has a P/E ratio of 9.8, below the S&P 500 P/E ratio of 17.7. Shares are up 26.4% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Xerox Corporation a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Xerox Corporation as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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