Here’s Why Exela Is a Good Play on Business Automation

  • Volatile stocks are crashing as investors lose interest in growth stocks across the board.
  • The optimism surrounding Exela Technologies (XELA) stock comes from the huge TAM for enterprises looking to automate in order to reduce cost and improve efficiency.
  • As Exela will likely see an increase in sales, it will remain a valuable company that meets the needs of businesses.
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In the past year, Exela Technologies (NASDAQ:XELA) stock traded for as high as $5.45 a pop. That seems like a distant memory, as shares are changing hands for under half a dollar, at the time of writing. Volatile stocks are crashing as investors lose interest in growth stocks.

Every company comes with its own sets of merits. Suppose you are an aggressive investor that can stomach a bit of risk. In that case, companies like Exela Technologies are worth a look, especially since they have the opportunity to revolutionize the world. Hence, a small position is not without question.

XELA Exela Technologies, Inc. $0.22

Why Invest in XELA Stock?

The increase in optimism surrounding XELA stock is the huge total addressable market (TAM) for business automation. 2029 is just a few years away, so projections might change. Hence, you should regularly monitor this space. However, according to one estimate, the global industrial automation market will reach $395.09 billion by 2035.

Traditional software makers currently dominate this market. But there are emerging players who are looking to change the status quo. These players use AI and machine learning to provide solutions that users can customize for each company’s needs.

XELA can help automate markets where necessary. Exela offers a range of solutions and services to help small businesses with their marketing. The number of nationwide companies that use these tools and services is increasing.

The largest business segment for the company is ITPS, which allows companies to manage data, process information and make informed decisions. Banks and governments are implementing digital technologies to modernize how they work. This is often considered a vital part of digital transformation. Exela has partnered with them so that these companies can meet their needs. The company has a suite of solutions that link different sets of information from various sources, including customer systems and standards. That makes them perfect for financial and accounting solutions.

The company has some ambitious targets to cut its debt by half a billion dollars in 2022, while they also plan to increase their free cash flow this year. The company plans to raise money for the business by selling certain non-core assets, a win-win situation for all sides.

Keep a Long-Term Vision for Exela in Mind

For the last two years, the company has been under pressure as companies and administrations readjusted their budgets. However, the pandemic is becoming a thing of the past. Hence, the company can look to increase sales this year.

Hence, as someone who believes that Exela is positioned to grow sales in the future, I am confident that it will continue to transform business’ needs. Those who know Exela’s different sector-focused solutions are more likely to be interested in its services. Just like how they were interested in its past solutions.

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On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


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