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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 $104.4 million.
  • XRX is up 3% 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 1.9%. XRX has a PE ratio of 14.3. Currently there are 3 analysts that rate Xerox Corporation a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Xerox Corporation has been 7.9 million shares per day over the past 30 days. Xerox has a market cap of $15.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.23 and a short float of 0.8% with 1.29 days to cover. Shares are up 10.6% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • XEROX CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, XEROX CORP increased its bottom line by earning $0.93 versus $0.88 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $0.93).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The debt-to-equity ratio is somewhat low, currently at 0.63, 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 1.00 is somewhat weak and could be cause for future problems.
  • 36.60% 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, the net profit margin of 5.19% trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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