The coronavirus pandemic has put a serious spanner in the works of the investment plans of even the shrewdest and most experienced investors. As production has fallen to levels rarely seen before, massive slices have been taken out of the share prices of many of the world’s largest and most reliable companies. One company that has suffered is the US print giant Xerox Holdings Corporation.
However, all may not be doom and gloom when it comes to Xerox. Initial losses at the beginning of the pandemic have been stemmed and, while the stock price remains well below what it was pre-lockdown, we can expect it to bounce back once workforces return to the office again. This makes Xerox Holdings Corp one of the tech stocks to watch as the world begins to return to work.
Company Profile: Xerox Holdings Corp
Xerox is the largest supplier of photocopiers and print products in the world. Founded in 1906 in Rochester New York, the corporation today sells print and digital document technology in more than 160 countries around the world. Xerox is currently based out of Norwalk, Connecticut.
Over the years, Xerox has been responsible for inventing some of the enduring computer hardware that has been adopted by computer manufacturers worldwide. These groundbreaking inventions include the computer mouse, the desktop computer and the desktop metaphor GUI. Today, the company focuses principally on its document technology and document outsourcing business.
Xerox and the Impact of the Pandemic
Xerox has been heavily hit by the negative impact that the COVID-19 pandemic has had on the world economy and consumer spending. Much of its business comes from the products and services that it supplies to offices, but with some many people now working from home in an effort to curb the spread of the virus, revenues have dropped significantly. This has been demonstrated by a first-quarter loss of $2 million on the same period from last year.
When looking for good tech stocks to invest in at the moment, it is advisable to scope out stocks which have dropped significantly but which are likely to rebound to somewhere near their pre-pandemic levels once the world returns to its normal state. We are convinced that Xerox stocks fall into this category.
At the turn of the year, Xerox stocks were riding high at around $36. This is far above the current price of $17, representing a significant opportunity for investors looking to capitalize on a stock price which could conceivably double back to its original price when office workers are able to resume in what will hopefully be a short period of time.
Looking to learn how to invest in tech stocks? The key is finding a stock whose price has fallen and are now available at a bargain price which is likely to bounce in the short-term. In the case of Xerox, investors should be encouraged that stock prices have not reduced as a result of organizational issues but rather as a result of issues beyond the control of board members.