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7 Criminally Underrated Tech Stocks to Buy Now!

The Nasdaq is making new highs, but not all tech stocks have had their comeuppance

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Tech Stocks to Buy: Xerox (XRX)

Forward P/E Ratio: 8
YTD Performance: -18.5%

Xerox Corp (NYSE:XRX) trades at a criminally low P/E of -13 times and a forward P/E of 8.17 times. On April 25, the company reported first-quarter net income of $16 million on revenue of $2.45 billion. It expects earnings of 80 cents to 88 cents a share for the full year.

Most importantly, the company paid down $1.3 billion of its debt, lowering its long-term debt to $4.9 billion. Operating cash flow improved to $190 million, up from $103 million quarter-over-quarter.

Investors may speculate it is time for consolidation in the printing sector. Profit margins are thin and demand for printers is falling. Last quarter, equipment sales fell 7.4%. If HP Inc. (NYSE:HPQ) may buy out Xerox’s printing business, using its excess cash. In the meantime, Xerox is rolling out new products and is growing in the developing markets.

Helped by favorable currency exchange rates, Xerox should expect revenue getting a lift from both high-end color printing and entry production systems.

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