XEROX

Analysis of Xerox share price

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Before starting to take position on the Xerox share price using CFDs with your chosen online trading platform it is highly recommended that you read all information that could be useful for your analyses and this is exactly what we offer in this detailed review where you can find all pertinent information relating to this company, its activities, its partnerships and competitors as well as data relating to this company’s stock market share price with a historical technical analysis of this and advice relating to the completion of a fundamental analysis.  

Elements that can influence the price of this asset:

Analysis N°1

Firstly, the market perspectives in digital printing are particularly good with the attractive growth in this sector worldwide. The sector of print management services is also experiencing a rise with the predominance of demand originating from the United States which is a real advantage for Xerox which is particularly well implanted in North America and which should therefore profit from this new demand.

Analysis N°2

The health related services provided by Xerox over the last few years also represent an attractive opportunity for the group regarding the current growth in this market sector.

Analysis N°3

Let us also remember here that the Xerox Group has often completed strategic acquisitions of other companies that have enabled it to develop its offers throughout the world and face an ever-growing competition.

Analysis N°4

It is important to remember that documentary technology is currently threatened by the growing transfer to paperless work. Through the boom in the use of smartphones and mobile telephones a drop in paper printing and therefore the perspectives for the document technology industry should be taken into account.

Analysis N°5

We also know that the Xerox Group also exercises activities in a highly competitive sector and this competition depends greatly on innovative technological developments. The ability of Xerox to be innovative will play a major part in its ability to face competition from worldwide leaders in this sector that could represent a serious threat.

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General presentation of the Xerox Company:

The Xerox Company was created in the 1950s and over time has become the global leader in the design, production and sale of document processing and management systems and equipment.

Among the products developed and marketed by the Xerox Group we particularly note office printers, copiers and fax machines as well as digital printers and multifunctional machines and systems as well as related supplies such as ink cartridges, cleaning products, binding accessories, labels and other consumables.

However, recently the Xerox Group has significantly increased the range of its products. It now also offers data management software and flow administration software as well as improved administrative procedural software, invoice processing and IT network configuration.

This internationally sized American company still achieves the major part of its revenue from the United States with 64.1% of its global turnover. However it is also highly present in the European market where it generates 24.6% of its turnover. The remainder of its income is derived from various other countries around the world.

 

Know the competition to the Xerox share price:

To complete a pertinent fundamental analysis of the Xerox share price you will of course need to take into account the major competition in this activity sector.  To assist you here is some significant information relating to the principal direct competitors of this company.

First it is essential to understand that the market where Xerox operates its activities is one of the most competitive and relies heavily on innovative technology.  The major competitors to Xerox can therefore be classified according to their activity.

In the document processing services and technology sector its major competitors are:

 

Strategic alliances implemented by the Xerox Group:

To ensure its growth and development, the Xerox Group can count on its long experience as well as its ability to create significant strategic alliances with other companies and groups around the world. Here are some examples of recent partnerships signed by the group.      

 

Analysis of the Xerox share price

This period began with a peak of $39.03 in May 2008. But rapidly, beginning in September of that same year, we observe a strong falling correction towards $11.01 that was reached in March 2009. This strong drop in the share price led to strategic purchases that enabled this share price to regain numerous points and rise to $32.12 in December 2010.

This was followed by a new, gradual falling trend marked by numerous micro-movements that led to a share price of $16.69 in November 2012.

The following trend was positive but highly volatile which enabled the Xerox share price to rally over a two year period to $38.32 in the month of December 2014. Unfortunately the year 2015 marked the return to a drop in this share price that succumbed to major profit taking and a new drop towards $23.29 up to December 2016 after several rising corrections.

Since this time this asset has progressed through a series of zigzag movements while trying to break through the resistance level at $30 which it managed to do in July 2017 although it again sunk below this psychologically significant threshold and ended the year close to but slightly below this amount.

 

Economical history 

Although the historical stock market charts can be highly informative for enabling the analysis of the Xerox share price through different technical configurations it is also necessary to take into account the events that could initiate or amplify significant and visible trends. To assist you we offer you the opportunity here to learn more about major recent events that have influenced this company’s progress.

Firstly in 2002 the Xerox Group was at the heart of a financial scandal.  In fact, during this time the company admitted it had voluntarily manipulated its financial results. This fraudulent action concerned sums in excess of 1.9 billion dollars and in particular related to sales completed in South America. Of course, this event resulted in negative consequences for the group’s reputation and movements in its share price as the investors lost trust.

Later in 2009 the Xerox Group announced the acquisition of the American company Affiliated Computer Services, or ACS, for the amount of 5.5 billion dollars. This company is one of the leading specialists in IT services and outsourcing solutions.      

In 2014, Xerox sold part of its outsourcing activities to the Atos Company for the amount of 1.05 billion dollars. This transaction in fact occurred through the sale of ACS which the company had acquired in 2009 and which accounted for 10,000 employees.

In 2016 Xerox announced its intention to separate its activities into two parts, one dedicated to services which would be named Conduent and another that would keep the Xerox name and concentrate on the materials and products. This separation was supposed to occur at the beginning of 2017.

Finally, the most recent event concerned the announcement by Fujifilm at the beginning of 2018 that it would participate at 50.1% in the Xerox capital for the sum of 6.1 billion dollars through the joint company Fuji-Xerox which was specifically created for this purpose.  Following this news the group also announced the forthcoming cut of 10,000 jobs.

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