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 up 1.4%. By the end of trading, Xerox Corporation fell $0.16 (-1.9%) to $8.44 on heavy volume. Throughout the day, 20,645,140 shares of Xerox Corporation exchanged hands as compared to its average daily volume of 10,523,500 shares. The stock ranged in price between $8.11-$8.65 after having opened the day at $8.62 as compared to the previous trading day's close of $8.60. Other companies within the Consumer Durables industry that declined today were: Chromcraft Revington ( CRC), down 10.7%, Entertainment Gaming Asia ( EGT), down 2.9%, Manchester United PLC Class A ( MANU), down 2.5% and Koss Corporation ( KOSS), down 1.6%.
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Xerox Corporation provides business process and document management services worldwide. Xerox Corporation has a market cap of $10.4 billion and is part of the technology sector. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are up 24.0% year to date as of the close of trading on Monday.

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, increase in stock price during the past year, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Elecsys Corporation ( ESYS), down 9.8%, VeriFone Systems ( PAY), down 8.4%, Global-Tech Advanced Innovations ( GAI), down 6.3% and Fabrinet ( FN), down 4.2% , were all gainers within the consumer durables industry with Sensata Technologies Holding N.V ( ST) being today's featured consumer durables industry leader.

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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