Why You Should Retain Xerox (XRX) in Your Portfolio Now

Core Viewpoint - Xerox Holdings Corporation is focusing on "Project Own It" and a post-sale-driven business model to achieve strong financial performance, with earnings expected to grow by 12.6% in 2024 and 10.7% in 2025 [1] Group 1: Growth Factors - Xerox is expanding its presence in small and mid-sized markets in the U.S., U.K., and Canada through Xerox Business Solutions and global acquisitions of dealers and IT service providers [2] - The company is enhancing its portfolio by integrating cybersecurity and robotic process automation solutions [2] - "Project Own It" is an enterprise-wide transformation initiative aimed at increasing productivity, operational efficiency, and cost reduction while realigning the business to adapt to changing market conditions [2] - The initiative contributes significantly to cost savings and frees up capital for further investments [2] - Xerox's current ratio at the end of Q1 2024 was 1.37, an improvement from 1.14 in the previous quarter and 1.26 a year ago, indicating strong liquidity to meet short-term obligations [2] Group 2: Risks - The company faces decreased demand for paper-related systems and products due to advancements in IT and the shift to digital media [3] - Xerox's business is vulnerable to security breaches from cyber and malware attacks, which can have significant financial and reputational impacts [3]