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Should Value Investors Buy Pitney Bowes (PBI) Stock?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Pitney Bowes (PBI - Free Report) . PBI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.96, which compares to its industry's average of 6.98. Over the past year, PBI's Forward P/E has been as high as 440 and as low as 6.96, with a median of 20.69.
We also note that PBI holds a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PBI's PEG compares to its industry's average PEG of 0.47. Over the last 12 months, PBI's PEG has been as high as 29.33 and as low as 0.46, with a median of 1.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pitney Bowes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBI feels like a great value stock at the moment.
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Should Value Investors Buy Pitney Bowes (PBI) Stock?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Pitney Bowes (PBI - Free Report) . PBI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.96, which compares to its industry's average of 6.98. Over the past year, PBI's Forward P/E has been as high as 440 and as low as 6.96, with a median of 20.69.
We also note that PBI holds a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PBI's PEG compares to its industry's average PEG of 0.47. Over the last 12 months, PBI's PEG has been as high as 29.33 and as low as 0.46, with a median of 1.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pitney Bowes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBI feels like a great value stock at the moment.