Last Updated: 14 Nov 2024
Executive Summary
Xerox Corp. (XRX) is a workplace technology company with a market capitalization of $10.28 billion. The company has been facing challenges in recent years, with negative EPS and declining revenue growth. However, analysts believe that Xerox is undervalued and has a positive long-term outlook. The current stock price of $8.39 is below the analyst target price of $7.75.
Company Overview
Xerox Corp. is headquartered in Norwalk, Connecticut and designs, develops, and sells document management systems and solutions. The company has a global presence with operations in the United States, Europe, Canada, and internationally. Xerox has a long history of innovation, dating back to the invention of the first photocopier in 1959.
Fundamental Analysis
Xerox's financial performance has been mixed in recent years. The company has reported negative EPS in each of the past three years. Revenue has also declined, with the company reporting a 7.5% decrease in revenue growth in the latest quarter. However, Xerox has a strong balance sheet with $1.5 billion in cash and equivalents. The company also has a low debt-to-equity ratio of 0.25.
Technical Analysis
Xerox's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
Analysts are mixed on Xerox's short-term outlook. Some analysts believe that the stock is undervalued and has the potential to rebound in the near term. Other analysts believe that the stock will continue to decline in the short term.
Long Term Outlook
Analysts are more positive on Xerox's long-term outlook. The company has a strong brand name and a loyal customer base. Xerox is also investing in new technologies, such as artificial intelligence and cloud computing. These investments are expected to drive growth in the long term.
Analyst Recommendations
The consensus analyst recommendation for Xerox is a "Hold." Two analysts have a "Hold" rating on the stock, while two analysts have a "Sell" rating. No analysts have a "Buy" or "Strong Buy" rating on the stock.
