Xerox deserves a second look
Xerox Corporation (XRX) is The Document Company and a leader in the global document market, providing document solutions that enhance business productivity. The Company has expertise in the production and management of documents: color and black-and-white, digital and paper, across networks or on a desktop, in a commercial print facility or a quick-print shop, for the small office or the global enterprise.
The acquisition of Affiliated Computer Systems has given earnings per share a boost. The company continues to invest in R&D in the area of digital publishing and will be the world leader in this technology. The low interest rate environment, if it continues, will help keep down the interest costs of this leveraged company.
The recent price momentum has given the stock an 80% Barchart technical buy signal with the stock advancing 29 times and up 39.37% in the last quarter. It trades around 11.78 which is 17.47% above its 50 day moving average of 11.13. The 14 day Relative Strength Index is 58.82% and rising.
The company has always been a Wall Street brokerage favorite and the Street has published 7 buy, 3 hold and no negative reports released recently. Although sales are expected to increase by 42.50% this year and only 6.30% next year the real story in in earnings projections of a 55.00% increase this year and 18.30% next year.
The security continues to be a core position with the general investing public and over on Motley Fool the CAPS members vote 402 to 66 that the price will beat the market with the All Stars voting in the same direction 110 to 55.
Fool notes that the last 12 Wall Street journalists articles have been positive.
Xerox is an old favorite who:
1 - Enjoys recent price movement
2 - 80% Barchart technical buy signal
3 - Wide and positive investor sentiment
4 - Wall Street projection of continuing increases in sales and earnings
Jim Van Meerten is an advisor to Marketocracy Capital Managementwho uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.