4-Star Stocks Poised to Pop: Xerox
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, copier maker and business services provider Xerox (NYS: XRX) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Xerox's business and see what CAPS investors are saying about the stock right now.
Xerox facts
Headquarters (founded) | Norwalk, Conn. (1906) |
Market Cap | $10.0 billion |
Industry | Office electronics |
Trailing-12-Month Revenue | $22.6 billion |
Management | Chairman/CEO Ursula Burns CFO Luca Maestri |
Return on Equity (average, past 3 years) | 8% |
Cash/Debt | $814.0 million / $9.2 billion |
Dividend Yield | 2.3% |
Competitors | Accenture |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 88% of the 620 members who have rated Xerox believe the stock will outperform the S&P 500 going forward.
A couple of months ago, one of those Fools, All-Star fcfroic, offered a balanced take on the opportunity:
This is not your Dad's [Xerox]. The business has become a services business with a high level of recurring revenue. The technology business, the moniker applied to the legacy copier business is subject to considerable Euro exposure and foreign currency translation issues, its operating margins [expanded sequentially] in the most recent quarter despite the revenue shortfall. Most of the debt funds the leasing of office equipment.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Xerox may not be your top choice.
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The article 4-Star Stocks Poised to Pop: Xerox originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Accenture. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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