Why These Five Stocks Are in Spotlight Today?

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The stock market tumbled today amid uncertainty due to upcoming meetings by the U.S. Federal Reserve and Bank of Japan, as well as on the back of a decline suffered by energy stocks. Since we are in the middle of the earnings season, several companies announced their financial results for the last quarter this morning, including Xerox Corp (NYSE:XRX), Laboratory Corp. of America Holdings (NYSE:LH), Roper Technologies Inc (NYSE:ROP), First Data Corp (NYSE:FDC), and KKR & Co. L.P. (NYSE:KKR). In this article, we are going to take a closer look at the results posted by these companies and take a look at how smart money investors have been trading them lately.

At Insider Monkey, we track around 800 hedge funds and other institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year (see more details about our small-cap strategy).

Xerox Corp Misses EPS Estimates 

Xerox Corp (NYSE:XRX)’s has plunged by more than 12% so far today after the company reported earnings of $0.22 per share, missing the consensus estimates of $0.23. The revenue in the quarter declined more than 4% to $4.28 billion and was slightly above estimates of $4.24 billion. The company expects adjusted EPS of $0.24 to $0.26 in the second quarter, above the current estimates of $0.23. For the full year, the company expects adjusted EPS between $1.10 and $1.20 per share, but it cut the reported EPS guidance to the range of $0.45 to $0.55 from $0.66 – $0.76 due to higher costs related to separation and restructuring. Back in February, the company announced its plans to split its business in two publicly-traded companies that would concentrate its office machines business and back-office services, respectively.

Follow Xerox Corp (NYSE:XRX)

Out of nearly 800 hedge funds tracked by Insider Monkey, 41 funds held long positions in Xerox Corp (NYSE:XRX) at the end of the fourth quarter of 2015, having amassed $1.4 billion worth of stock. Carl Icahn’s Icahn Capital LP, who pushed for the separation of the company, has one of the biggest stakes in the company, which contains some 92.38 million shares, equal to 9.12% of the outstanding stock.

Revenues Increase at LabCorp

Laboratory Corp. of America Holdings (NYSE:LH)’s stock has inched up by 1% after the company reported a net revenue of $2.30 billion, an increase of 29.5% on the year and above estimates of $2.20 billion. The diagnostics company’s earnings in the first quarter were $160.2 million or $1.55 per share, compared to $3.1 million or $0.04 per share last year, while its adjusted EPS of $2.02 was $0.06 higher than expected. For the full 2016, the company expects EPS in the range of $8.55 to $8.95. In a statement, David P. King, CEO of Laboratory Corp. of America Holdings, said that the company is off to a great start in 2016 because of the increasing demand in services of LabCorp Diagnostics and Covance Drug Development.

Follow Laboratory Corp Of America Holdings (NYSE:LH)

A total of 38 investors from our database held positions with a total value of around $2.8 billion in Laboratory Corp. of America Holdings (NYSE:LH) at the end of the last year. Larry Robbins’s Glenview Capital held 5.6 million shares heading into 2016.

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