10 Worst Affordable Tech Stocks to Buy According to Short Sellers

3) Xerox Holdings Corporation (NASDAQ:XRX)

Short % of Float (As of 30 August 2024): 20.11%

Forward P/E as of 23 September 2024: 5.81x

Xerox Holdings Corporation (NASDAQ:XRX) operates as a holding company. The company, through its subsidiaries, offers printers, scanners, supplies, and accessories.

Bears believe that Xerox Holdings Corporation (NASDAQ:XRX)’s stock price is expected to remain under pressure considering the challenges related to the traditional printing business and the impact of digital transformation trends that continue to reshape industry demands. Moreover, they believe that the major restructuring efforts at Xerox Holdings Corporation (NASDAQ:XRX) might continue to act as a critical headwind. The company’s strategy of continued restructuring, and a pivot to a competitive and operationally expensive Services market, might impact its margins moving forward.

In 2Q 2024, the company saw revenues of $1.58 billion, reflecting a decline of 10%, or 9.6% in constant currency. Xerox Holdings Corporation (NASDAQ:XRX) highlighted that comprehensive and strategic operating model changes, which were implemented in 1Q 2024, led to a short period of disruption.

That being said, Wall Street remains optimistic about the reinvention strategy of Xerox Holdings Corporation (NASDAQ:XRX), which targets to improve adjusted operating income by $300 million by 2026 end. The company believes that equipment orders and new product launches are expected to drive stronger revenue growth in 2H 2024. Notably, Xerox Holdings Corporation (NASDAQ:XRX) continues to focus on expanding its offerings in the A4 and A3 categories, along with venturing into new segments in the production market.

Therefore, given its focus on digital transformation, cost savings initiatives, and market expansion, experts believe that the company should be able to meet its financial targets. Xerox Holdings Corporation (NASDAQ:XRX) aims to transform with double-digit operating margins and more than 20% of revenue from digital and IT services by the year 2027.

As per Wall Street analysts, the shares of Xerox Holdings Corporation (NASDAQ:XRX) have an average price target of $14.00. Notably, the company was in the portfolios of 28 hedge funds, as per Insider Monkey’s 2Q 2024 data.