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Xerox Holdings (XRX) remains in the red, with net losses worsening at a steep rate of 49.3% per year over the past five years. While revenue is forecast to grow 9.1% annually, that is still behind the US market’s 10.3% pace, and there is not enough data to say if earnings growth will beat those averages anytime soon.

See our full analysis for Xerox Holdings.

Next up, we will see how the latest financial numbers compare against the core narratives investors follow on Simply Wall St. This will highlight where the story aligns or where perceptions might shift.

See what the community is saying about Xerox Holdings

• Analysts forecast Xerox’s profit margins will climb sharply from -21.2% today to 31.8% in three years, signaling a dramatic turnaround in bottom-line performance if cost savings and growth efforts succeed.

• Consensus narrative notes that operating model changes and recent acquisitions are expected to boost efficiencies and shift margins higher.

  • Over 100 reinvention initiatives and integration of ITsavvy and Lexmark aim to deliver significant cost savings, confirming the focus on margin recovery.

  • However, declining sales force productivity and print segment rationalization may erode these gains if market share is not regained, putting upward margin trajectory at risk.

• Xerox trades at $3.32 per share, which is deeply discounted versus its DCF fair value estimate of $17.01, as well as its already low Price-To-Sales Ratio of 0.1x compared to the industry’s 1.9x.

• Consensus narrative highlights that the primary rewards hinge on relative value. Investors see the discount as potentially attractive but are wary because deteriorating profitability and weak financial health could prevent the stock from reaching intrinsic value.

  • With continued losses and a dividend that is not considered sustainable, even a low valuation may not draw investors until operational performance visibly stabilizes.

  • The market’s focus remains on whether management’s initiatives can close the fair value gap by delivering sustained gains.

• The analyst consensus target for Xerox is $4.50 per share, which is 36% above the current price, but assumes revenue will reach $7.7 billion and earnings will hit $2.5 billion by July 2028.

• According to the consensus narrative, for this upside to materialize, Xerox must achieve not just higher revenues but also a PE ratio turnaround from -0.5x today to 0.8x by 2028.

  • The bullish scenario relies on new business signings and full realization of cost savings, but integration risks from acquisitions and a shrinking finance receivables book underline that execution risk is high.

  • Analyst agreement on forecasts is strong, yet bears could find support if organizational changes fail to reverse ongoing revenue declines.

CommScope Holding Company (COMM) posted a transition into profitability over the twelve months ending September 30, 2025, despite a one-off loss of $45.9 million. While the company delivered earnings growth of 5.9% per year over the past five years and recently turned a positive net profit margin, the outlook is less upbeat. Earnings are projected to decline by 159% per year going forward, with annual revenue growth expected at 9.7%, trailing the wider U.S. market’s 10.4% pace. Investors weighing the latest results will note value signals from the company’s price-to-earnings ratio of 13.1x and trading price below fair value, but future profit risks remain front and center.

See our full analysis for CommScope Holding Company.

Next, we’ll set the latest earnings numbers against the most widely followed narratives for CommScope, highlighting where the story aligns and where it diverges.

See what the community is saying about CommScope Holding Company

• CommScope’s DCF fair value is $56.73, while the actual share price is just $17.30, showing an implied discount of over 65% compared to the modeled fundamental valuation.

• According to the analysts’ consensus view, the company’s shares trade at a price-to-earnings ratio of 13.1x, well below the U.S. communications industry average of 32x. This

  • strongly supports the argument that CommScope offers material value upside, especially since it’s also trading below fair value and the peer average of 24.5x.

  • challenges skepticism about the company’s negative growth outlook, as the valuation gap may already reflect future risk concerns.

• Consensus analysts anticipate revenues to reach $6.7 billion and earnings to come in at $139.1 million by 2028, suggesting that the current market price leaves significant room for rerating if those forecasts materialize.

Curious how numbers become stories that shape markets? Explore Community Narratives 📊 Read the full CommScope Holding Company Consensus Narrative.

• The completed sale of the CCS business is designed to eliminate company debt and preferred equity, reduce interest expense, and free up significant excess cash for shareholder returns.

• Consensus narrative points out that this capital structure change could directly strengthen CommScope’s financial resilience, but leaves the company more reliant on the less predictable ANS and RUCKUS segments going forward. This

  • raises the stakes for execution in new growth initiatives, since legacy enterprise fiber revenue streams are no longer present to smooth volatility.

  • indicates that while short-term financial health might improve, long-term revenue stability could be more difficult to achieve given greater exposure to cyclical and customer-concentrated businesses.