Xerox is showing signs of a market leader. EPS growth last two quarters was 508% and 238%. It just finished a symmetric cup-with-handle pattern. And on Wednesday Xerox stock got a bump higher to an 80 Relative Strength Rating. Along the way, it passed a big milestone.
Xerox Stock On Outskirts Of Top Group
The upgraded 80 RS Rating shows that Xerox stock tops 80% of all stocks for price performance this past year. A study of the market shows that the best stocks tend to have an RS Rating north of 80 in the early stages of their moves. Xerox stock is right at the edge of that exclusive group.
Among its other ratings, Xerox stock has a 92 Composite Rating, out of 99, putting it in the top 8% of all stocks. IBD's Composite Rating is a mix of five other key fundamental and technical ratings. It has a good 81 EPS Rating and a B+ Accumulation/Distribution Rating on an A+ to E scale. The B+ rating shows that ETFs, mutual funds and other big institutional investors are fairly heavy buyers of its stock, a bullish indicator.
Looking For Winning Stocks? Try This Simple Routine
Tech stalwart Xerox traces its roots in the photo copying market back to 1906. It's known for its copiers, scanners, publishing systems and software. Additionally it's in the Computer-Hardware/Peripherals industry group, which currently ranks No. 1 on IBD's list of 197 industry groups as the artificial intelligence market explodes.
Recent Breakout Failed; Another In Works?
Xerox stock broke out from a cup-with-handle base earlier, but has fallen back below the prior 17.18 buy point. It could still rise above that point and break out. If it doesn't, then look for a fresh buying opportunity to emerge, such as a three-weeks-tight pattern or a bounce off its 50-day or 200-day line. On Wednesday Xerox edged up fractionally to near 17.
It's important to note that it formed a later-stage base, which can succeed but makes it riskier to establish a new position or add shares to an existing one.
Earnings grew 238% last quarter to 44 cents per share. Revenue was flat with last year at $1.75 billion. After reporting a drop in earnings for the September 2022-ended quarter, Xerox then posted EPS gains of 162%, 508% and then 238% last quarter.
Xerox stock holds the No. 2 rank among its peers in the Computer-Hardware/Peripherals industry group, according to IBD Stock Checkup. Super Micro Computer, which does business as Supermicro, is No. 1. And peripherals maker Logitech International is No. 3.
When researching the best stocks to buy and watch, a stock's relative price strength is a good indicator to use.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
