) scaled a 52-week high of $12.29 during the trading session on
Monday, before closing at $12.21 for a solid year-over-year
return of 65.0%.
Xerox recently announced an agreement to acquire Germany-based
Invoco Holding, thereby amplifying its European customer care
services. This acquisition will help to expand Xerox's
capabilities in Germany and expand its services in Switzerland
At the same time, Xerox continues to generate significant cash
flow and deploys it to maximize shareholder value. The stock is
currently trading at a forward P/E of 10.6x and has a long-term
earnings growth expectation of 7.7%.
Xerox expects strong demand from small and midsize businesses
in the United States going forward.
The company expects to expand its offerings through inorganic
measures to add more clients to its portfolio. Its existing
clients are increasingly expanding their partnerships with Xerox
to improve their operations.
The increase in contract value of service signings and a
growing order pipeline are strong indicators of 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 have 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
2014, respectively. Despite the lack of estimate revisions, we
anticipate an uptrend for the stock backed by its strong growth
Other Stocks to Consider
Xerox currently has a Zacks Rank #4 (Sell). Other
better-ranked stocks that are worth a look include
). All these stocks have a Zacks Rank #2 (Buy).
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