Latest news with #XRX
Yahoo
02-06-2025
- Business
- Yahoo
Boom Bust: Assets Flee CALF as Performance Slumps
The Pacer US Small Cap Cash Cows ETF (CALF) has fallen sharply out of favor in 2025, as a dramatic reversal in performance has triggered a flood of outflows from the once-high-flying fund. Year to date, investors have yanked $2.6 billion from the ETF, the 12th-largest outflow among all U.S.-listed exchange-traded funds. That exodus, combined with deep losses, has slashed the fund's assets by nearly half—from $8.1 billion at the start of the year to $4.3 billion today. At its peak in 2024, CALF had just under $10 billion in assets. The sharp reversal underscores how quickly investor sentiment can shift. CALF's recent struggles have been particularly stark given its meteoric rise in prior years. From just $1 billion in assets in October 2022, the fund ballooned to nearly $10 billion in April 2024 thanks to blistering 2023 performance. That year, the ETF surged 35%, roughly double the returns of the biggest small-cap ETFs, including the iShares Russell 2000 ETF (IWM), the Vanguard Small-Cap ETF (VB) and the iShares Core S&P Small-Cap ETF (IJR). But the magic didn't last. In 2024, CALF dropped 7.4% even as its small-cap peers gained between 8% and 15%. And in 2025, the performance gap has only widened. As of now, the fund is down 12.5% on the year, compared to a 6.9% decline for IWM, a 4.7% drop for VB and an 8.2% loss for IJR. CALF's underperformance reflects both its concentrated nature and its unique strategy. While IWM, VB and IJR track broad, market cap-weighted indexes with hundreds or even thousands of holdings—none of which typically make up more than 0.5% of the portfolio—CALF is much more selective. The ETF chooses 200 companies with the highest free cash flow yields (free cash flow divided by enterprise value) from the small-cap universe. It's a value-leaning approach but one distinct from traditional value screens, such as those that emphasize price-to-book or price-to-earnings ratios. As a result, CALF's portfolio is relatively concentrated, with the top 10 holdings making up around 20% of assets and the top 20 more than 35%. Individual stocks can carry weights of 2% or more. That's not unusually high for ETFs overall, but it's elevated compared to other broad small-cap funds. Unfortunately for CALF, many of its top holdings have fared poorly in the past year and a half. Just five companies—Xerox Holdings Corp. (XRX), Alpha Metallurgical Resources Inc. (AMR), Peabody Energy Corp. (BTU), Signet Jewelers Limited (SIG) and Ironwood Pharmaceuticals Inc. (IRWD)—have collectively wiped nearly six percentage points off the fund's returns since the start of 2024. That kind of drag is difficult to overcome, and it's especially painful for a strategy that pitches itself as a more disciplined, cash-flows-focused alternative to traditional small-cap investing. To be clear, this year's weakness doesn't appear to be a referendum on value investing itself. Over the past 17 months, the Vanguard Small-Cap Value ETF (VBR) is up 8% while CALF has fallen 19%. VBR tracks the CRSP US Small Cap Value Index, which uses a multi-factor model that selects stocks based on price-to-book, various price-to-earnings ratios, dividend yields and price-to-sales ratios. CALF's struggles highlight the risks of a relatively concentrated portfolio of small-cap stocks. When it works, it can outperform in a big way. But when it doesn't, investors may quickly head for the | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Xerox Holdings Corporation (XRX) Cuts Dividend Again, Now Down to $0.025
Xerox Holdings Corporation (NASDAQ:XRX) announced that its Board of Directors has updated its dividend policy ahead of completing the Lexmark acquisition, lowering the quarterly dividend to $0.025 per share, which amounts to $0.10 annually. Based in Connecticut, Xerox Holdings Corporation (NASDAQ:XRX) specializes in creating and manufacturing print and digital document products, along with providing related services. In December 2024, Xerox Holdings Corporation (NASDAQ:XRX) had already announced a dividend cut tied to the Lexmark deal, focusing on paying down debt once the acquisition is finalized. Since then, rising yields on Xerox's publicly traded debt have increased its borrowing costs, making debt reduction even more important. In addition, the anticipated earlier closing of the Lexmark acquisition and ongoing tariff and trade uncertainties have made maintaining financial flexibility a top priority. Mirlanda Gecaj, chief financial officer, made the following comment about the recent development: 'Consistent with our previously stated capital allocation priorities to reduce leverage post-closing, we believe reducing our dividend creates greater financial flexibility to deploy cash in the most accretive manner. The dividend remains an important component of our capital allocation policy as we continue to optimize our allocation framework ahead of the Lexmark acquisition close.' XRX has a dividend yield of 11.12%, as of May 23, and the stock has declined by over 45% since the start of 2025. While we acknowledge the potential of XRX as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than XRX but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None.
Yahoo
14-05-2025
- Business
- Yahoo
Xerox Holdings Corporation (XRX): One of the Underperforming Stocks Targeted By Short Sellers
We recently published a list of . In this article, we are going to take a look at where Xerox Holdings Corporation (NASDAQ:XRX) stands against other underperforming stocks targeted by short sellers. Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company's bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors. The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company's downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest. We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest. A line of top-of-the-line digital printing presses, churning out documents with precision and accuracy. Short interest: 17.98% 6 months' performance: -58.46% Xerox Holdings Corporation (NASDAQ:XRX) is a workplace technology company. It integrates hardware, software, and services for enterprises. XRX is a developer, designer, and seller of document systems, services, and solutions. The company operates in the Xerox Financial Services (XFS) and Print and Other segments. 2024 proved to be a challenging year for the company. Driven by a continuing decline in its core print business, Q4 revenue dropped by 8.6% YoY. Despite a slight revenue beat supported by ITsavvy contributions, organic growth remained negative, with the core revenue falling 10.2% YoY in constant currency. Xerox Holdings Corporation (NASDAQ:XRX)'s planned acquisition of Lexmark is also raising concerns. One of the major concerns regarding this acquisition is that it is funded by an additional $1.4 billion in debt. If they can implement the acquisition successfully, it could drive a bullish market outlook and short-term EPS growth. However, if the execution fails, it could worsen the financial position of the firm. Another key risk is that the print industry is experiencing an overall decline. Taking on more debt in such a situation is attracting shorts to the stock. Overall, XRX ranks 5th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of XRX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XRX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Xerox (XRX): Buy, Sell, or Hold Post Q4 Earnings?
What a brutal six months it's been for Xerox. The stock has dropped 63.1% and now trades at $3.98, rattling many shareholders. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is now the time to buy Xerox, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Despite the more favorable entry price, we're swiping left on Xerox for now. Here are three reasons why XRX doesn't excite us and a stock we'd rather own. Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ:XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Xerox's demand was weak over the last five years as its sales fell at a 7.3% annual rate. This was below our standards and is a sign of poor business quality. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Unfortunately, Xerox's ROIC has decreased significantly over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Xerox's $3.40 billion of debt exceeds the $576 million of cash on its balance sheet. Furthermore, its 6× net-debt-to-EBITDA ratio (based on its EBITDA of $503 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. Xerox could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Xerox can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. We see the value of companies helping consumers, but in the case of Xerox, we're out. After the recent drawdown, the stock trades at 3.1× forward price-to-earnings (or $3.98 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. We'd recommend looking at our favorite semiconductor picks and shovels play. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
