It's Time to Buy Xerox Stock. Here's Why.http://www.fool.com/investing/general/2013/05/26/its-time-to-buy-xerox-stock-heres-why.aspx Rich Smith
May 26, 2013
It might not be obvious to the casual observer, but right now, today, Xerox (NYSE: XRX) stock offers one of the best values available in the IT industry. Why?
Xerox stock is cheap
And as is so often the case, with a low valuation comes a big boost in dividend yield. Xerox stock currently yields a tidy 2.6% dividend. That's as compared with Accenture and IBM, both of which yield less than 2%.
Xerox: A cheap price for low expectations
But while that sounds bad, if you turn this fact on its head, low expectations might actually turn out to be good news for investors in Xerox stock. After all, if no one's expecting much growth out of the company, then Xerox has a low hurdle to clear.
It has to be easier for Xerox stock to exceed expectations for 6.7% earnings growth, after all, than it will be for Accenture to deliver better than 11.4% growth. (And with sales growth alone having averaged 5.4% annually over the past five years, there's every reason to believe Xerox can at least hit its targets going forward).
Xerox stock pays you best