Xerox Holdings Corporation (XRX) is a Top-Ranked Momentum Stock: Should You Buy?

Group 1: Zacks Style Scores Overview - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Each stock is assigned a rating from A to F, with A indicating the highest potential for outperformance [2] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles [2][4] Group 2: Value Score - The Value Score focuses on identifying stocks trading under their true value by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [2] Group 3: Growth Score - The Growth Score assesses a company's financial strength and future outlook by examining projected and historical earnings, sales, and cash flow [3] Group 4: Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings outlook changes, using factors like one-week price change and monthly percentage change in earnings estimates [3] Group 5: VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to provide a comprehensive indicator for stock selection [4] Group 6: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to aid in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - There are over 800 top-rated stocks available, including more than 200 with a Strong Buy rank and 600 with a Buy rank [5] Group 7: Stock Highlight - Xerox Holdings Corporation - Xerox Holdings Corporation (XRX) is currently rated 1 (Strong Buy) on the Zacks Rank and has a VGM Score of A, indicating strong potential [7] - Despite a decline in demand for paper-related products, Xerox remains a leader in the contractual print and document services market [7] - XRX has a Momentum Style Score of A, with shares increasing by 11.8% over the past four weeks, and the Zacks Consensus Estimate for fiscal 2024 has risen by $0.50 to $2.27 per share [7] - The company has an average earnings surprise of 64.8%, making it a strong candidate for investors [7]