Xerox Hits New 52-Week High on Growth Drivers - Analyst Blog

Shares of Xerox Corporation (XRX) scaled a new 52-week high of $14.25 during yesterday's trading session, before closing a notch lower at $14.20. Xerox's share prices have been on an uptrend since it reported third-quarter 2014 earnings results in October this year. Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has the wherewithal to further drive its price upward. The stock is currently trading at a forward P/E of 12.8x and has long-term earnings growth expectation of 7.0%.

Growth Drivers

In a bid to expand its portfolio of offerings for addressing the demand for automating government workflows, Xerox recently acquired Consilience Software, Inc., a case management and workflow automation software provider. Additionally, the company launched an advanced analytics platform named Juvo, which allows hospitals to analyze patient-care data, and aids in improving healthcare quality.

The company also formed an alliance with the University of Michigan Mobility Transformation Center to develop sophisticated solutions aimed at transforming transportation globally. These actions are expected to strengthen its position in the healthcare and transportation markets.

Xerox is also set to acquire Seattle-based firm Intrepid Learning Solutions to expand its learning portfolio. Post acquisition, Intrepid's cloud-based learning technology business will be excluded from Xerox and marketed under the Intrepid brand. Together, both companies will sign a partnership alliance to benefit their clients with Intrepid's technological expertise and Xerox's e-learning, consulting, administration and classroom training programs.

Xerox is attempting to integrate its outsourcing capabilities with its Managed Print Services, in order to automate workflow with technology and consulting services. The company launched 23 new products this year and is pioneering new, inventive solutions in the high-end custom printing marketplace as well.

All these actions have boosted investor confidence and might have propelled the stock to a 52-week high.

Other Stocks to Consider

Other players in the industry worth mentioning include Canon Inc (CAJ), Pitney Bowes Inc (PBI) and FARO Technologies Inc (FARO), each having a Zacks Rank #2 (Buy).