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Are Investors Undervaluing Pitney Bowes (PBI) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Pitney Bowes (PBI - Free Report) . PBI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.87, while its industry has an average P/E of 8.18. Over the last 12 months, PBI's Forward P/E has been as high as 440 and as low as 7.51, with a median of 20.87.

Investors should also note that PBI holds a PEG ratio of 0.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PBI's PEG compares to its industry's average PEG of 0.55. Within the past year, PBI's PEG has been as high as 29.33 and as low as 0.50, with a median of 1.39.

These are just a handful of the figures considered in Pitney Bowes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PBI is an impressive value stock right now.


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