On Oct 7, Zacks Investment Research upgraded information technology services provider Xerox Corporation (XRX) to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell) largely on the back of healthy long-term fundamentals fuelled by sustained product innovations. The stock is currently trading at a forward P/E of 11.5x and has long-term earnings growth expectation of 7.6%.
Why the Upgrade?
Xerox recently introduced the Juvo Care Performance Platform to collect and analyze patient-care data for improving the quality of healthcare. Juvo is an advanced and comprehensive healthcare analytics and workflow software package. It collects and processes data from all levels of the care cycle starting from admission of the patient to discharge. Apart from medical and treatment data, the platform tracks insurance reimbursements and adherence to regulatory compliance.
The new Juvo platform is expected to boost Xerox's portfolio of business process management and give it a leading role in the changing healthcare model. By aligning pay with performance and trimming costs, healthcare analytics hold the power to put healthcare companies back on a strong growth trajectory.
Xerox also updated the hardware in its DocuMate 4830 scanner to deliver an improved performance and reliability for various corporate houses and businesses. The scanner increases black & white scanning speed by 67% from 30 to 50 pages per minute and reduces the complexities of scan jobs and workflows.
Adding another client to its portfolio, Xerox entered into an agreement with leading money transfer and payment services firm MoneyGram for effective transmission of child support payments. The agreement will enable Xerox to combine its developed infrastructure with MoneyGram to ensure fast and secure movement of funds to custodial parents.
Moving forward, Xerox remains committed to its 5-plank strategy that is centered on portfolio management, global growth, cost transformation, operational excellence and analytics. With sustained investments to expand geographical footprint and build its services capabilities in areas that provide significant customer value, Xerox expects to reap significant benefits in the long run.
Other Stocks to Consider
Some other stocks in the industry that also look promising include Hewlett-Packard Company (HPQ), NV5 Holdings, Inc. (NVEE) and CGI Group, Inc. (GIB), each carrying a Zacks Rank #2 (Buy).
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