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 (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 | $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 Canon Hewlett-Packard |
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.
If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
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Report this Comment On September 14, 2012, at 8:09 AM, havvey wrote:
This has to go up it is down so low it has to look up to see bottum!!!
Report this Comment On September 14, 2012, at 12:03 PM, garifolle wrote:
And considering the absurd rally of the last 2 days, this is one of the rare stocks that is not overbought.
The stock will profit from lower interest rates, and should not suffer too much of too high commodities prices.
It should also not be too affected when the markets open their eyes on the real situation of the economy, and might profit from a short squeeze.
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