) hit a 52-week high of $12.08 during yesterday's trading
session. However, the stock closed the session at $12.03, which
reflects a solid year-to-date return of 67.3%. The average
trading volume aggregated 8.8 million shares.
Xerox recently upped the quantum of its bond offering after an
upgrade of investment grade rating from BBB- to BBB by global
credit rating agency Standard & Poor's. The boost in the
credit rating by one notch has enabled the company to raise bond
offering to $500 million from $300 million planned earlier. At
the same time, Xerox generates significant cash flow and deploys
it to maximize shareholder value. These are some of the catalysts
driving the stock.
Xerox expects continued demand from small and midsize
businesses in the United States and positive trends in the
high-end of its business going forward.
In order to better adapt to the changing market trends, Xerox
is also continually shifting its business model by expanding
indirect distribution channel and streamlining its supply chain
and product portfolio. Going forward, the company expects to
increase revenues from the Services segment to 66% of total
revenue by 2017.
To achieve this objective, Xerox is focusing more on vertical
markets like healthcare. The company has already begun to reap
huge benefits from Medicaid Management Information System (MMIS)
through the successful implementation and CMS (Centers for
Medicare and Medicaid Services) Certification in 31 state
The increase in contract value of service signings and the
growing pipeline are strong indicators for robust growth of the
company. At the same time, Xerox is continuing its thrust for
leadership in Document Technology with innovative products in
order to meet the demands of customized communications in digital
Over the last 30 days, none of the analysts revised their
estimates upward or downward for 2013 which led to the Zacks
Consensus Estimate being constant at $1.09 and $1.13 for 2013 and
Other Stocks to Consider
Xerox currently has a Zacks Rank #4 (Sell). Other stocks that
look promising and are worth a look include
Pitney Bowes Inc
USA Technologies Inc
VASCO Data Security International Inc
). All these have a Zacks Rank #2 (Buy).
PITNEY BOWES IN (PBI): Free Stock Analysis
USA TECH INC (USAT): Get Free Report
VASCO DATA SEC (VDSI): Free Stock Analysis
XEROX CORP (XRX): Free Stock Analysis Report
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