COMPANY DESCRIPTION Xerox builds and integrates software and hardware solutions for customers. The company had traditionally provided printers and copiers for the workplace, but now has investments in artificial intelligence (AI), augmented reality-driven services, robotic process automation, sensors and services for the internet of things, 3D printing, and clean technologies. Based in Norwalk, Connecticut, Xerox operates in 160 countries and employs about 20,000 people. The shares are a component of the S&P 400 Mid Cap Index.

U.S. stocks are up, at midday. The mood feels optimistic with some caution sprinkled in as Wall Street hasn't forgotten the drubbing two days ago. Today's start was helped again by Japan's Nikkei, which rose 1% overnight after the dramatic fall a few nights ago. A Bank of Japan official commented that the central bank wouldn't raise rates further given the market volatility. Earnings reports continue to drive movement in individual U.S. stocks.

Xerox is an original equipment manufacturing and software company. Xerox operates in one segment--design, development, and sale of printing technology and related solutions--while deriving 60% of its revenue from the U.S. and 40% from international markets. The company is an OEM of multifunction printers, or MFPs (printers that can print, copy, and scan), focusing on large enterprise markets. Apart from equipment, the company provides post-sales services like managed print services--a service that helps to bring smart servicing and efficiencies to how employers use their print/copy equipment. Xerox is attempting to enter new markets like digital print packaging solutions and printed electronics.

The second quarter of 2024 was rewarding for equity investors, as the S&P 500 increased another 4% and has gained almost 15% year to date. Growth was the segment leader in 2Q, as the S&P 500 Growth Index advanced approximately 8% in the period while the S&P 500 Value Index declined slightly. Leading sectors included Information Technology and Communication Services, while sectors in the red for the past three months included Real Estate, Materials, Industrials, Financial, and Energy. The average stock in the Argus Universe of Coverage declined 2.4% during the quarter, while the median stock dropped 3.0%. The average BUY-rated stock declined 0.7%, while the average HOLD-rated stock gained 6.7%. Will the rally broaden in 2H24, or will investors keep focusing on Tech and Communications groups? Will small-caps pick up their pace (the Russell 2000 was up 1.8% in 1H24), or is the current bull market rally due for a break, with some profit-taking coming into play? Given declining interest rates, we expect growth stocks to continue to carry the bull market, while the risk of recession puts a premium on clean balance sheets, which are also more prevalent among large-caps. Investors seeking value are encouraged to focus on dividends and look for yields in the 3-4% range. Here are the top 10 performers from the Argus Universe last quarter, including, somewhat surprisingly, representatives of five of the 11 major sectors, as well as the five worst performers.