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, photocopier specialist Xerox (NYSE: 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 $11.2 billion
Industry Office electronics
Trailing-12-Month Revenue $22.5 billion
Management

Chairman/CEO Ursula Burns

CFO Luca Maestri

Return on Equity (average, past 3 years) 6.8%
Cash/Debt $1.1 billion / $9.3 billion
Dividend Yield 2.2%
Competitors

Canon (NYSE: CAJ  )

Hewlett-Packard (NYSE: HPQ  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 88% of the 544 members who have rated Xerox believe the stock will outperform the S&P 500 going forward. These bulls include eksummers620 and Libbyloo00.

Just last week , eksummers620 noted that Xerox "pays a respectable dividend and generates plenty of cash." Our CAPS member concludes: "The company has plenty of naysayers, but that just makes it a classic kind of contrarian investment."

Over the next five years, in fact, Xerox is expected to grow its bottom line at a brisk rate of 21% annually. That's much faster than industry peers such as Canon (7.6%), HP (8%), and Pitney Bowes (NYSE: PBI  ) (8.4%).

CAPS member Libbyloo00 elaborates on the Xerox bull case:

Ever get one of those nasty photo radar tickets? Probably YES, and with even more frequency lately. Talk about a growth industry! XRX acquired a leader in this technology and The Street has yet to give it credit for this and other jazzier aspects of XRX. I like this CEO. And the buzz has yet to get out that XRX is more than just copy machines. The service contracts are a nice, steady, boring cash cow while the CEO spices things up with acquisitions into complementary fields.

What do you think about Xerox, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Xerox? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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.

Read/Post Comments (2) | Recommend This Article (2)

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  • Report this Comment On September 21, 2011, at 7:14 AM, havvey wrote:

    I would hope it would start performing soon. All i have heard is how good it is and its down 1/3 this summer???

  • Report this Comment On September 21, 2011, at 10:53 PM, jlarsgard wrote:

    No it will go bankrupt eveyone, sell, sell, look at selling it to meee....

    Look at rest of market it is down

    The word they own 'Xerox' is a word, they own a word, that is synonymous with photocopier, and i could sell a lot with that,

    I'm sure that i could sell you a tire, a flower, a car, etc for more as the exact same product with a generic name, or how about xerox loans and reality, the name carries a lot of value and, umm even dividend producers like pfe, etc have been beaten up HARD this Red Summer, (well we had an 'Arab spring' any other suggestios???

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