Pitney Bowes Inc. (PBI - Free Report) has signed a new business alliance with Lighthouse Computer Services. The premium technology behemoth intends to provide customers with state-of-the-art data management solutions from the latest partnership. This pact is expected to boost Pitney Bowes’ innovation-based growth trajectory in the near term.
Pitney Bowes powers billions of digital and physical transactions in the highly connected world of commerce. Over the past 30 years, the company has come up with several breakthrough technologies in the field of data management. In turn, these have abetted companies in rationalizing customer data management plans.
By joining forces with Lighthouse, Pitney Bowes intends to create customized data solutions that will aid the companies entice as well as retain valued customers, enhance efficacy of marketing programs, and combat threats of fraud as well. Similar to Pitney Bowes, Lighthouse also holds almost 25 years of expertise in the domain of creating well-paid data solutions.
Henceforth, this alliance would bring together greater strengths and synergies and give rise to groundbreaking technological solutions that would raise the value of end users. Lighthouse would be embracing Pitney Bowes’ unique location intelligence technologies for driving innovation in the sphere of data management.
Pitney Bowes currently carries a Zacks Rank #4 (Sell). It faces several internal and external adverse externalities. For instance, appreciating U.S. currency has been affecting the company’s cross-border sales. In addition, the company’s efforts to improve its software business have not yet yielded results. Surge in operating and marketing expenses has also been a cause of worry for the company.
Pitney Bowes is constantly trying to reinforce its business on the back of newly deployed Enterprise resource planning (“ERP”) system and improved Digital Commerce Solutions. However, the previously mentioned bearish factors might limit growth.
Over the last 60 days, Zacks Consensus Estimate for the stock has been revised downwards by 2.2% and 3.3% for 2016 and 2017, respectively. The downside mirrors brokers’ negative sentiments towards the stock. Notably, the stock closed at $17.60 per share in the trading session on Sep 21, 2016, down 2.7% since its second-quarter 2016 earnings release.
Stocks to Consider
Some better-ranked stocks within the industry include Konica Minolta, Inc. (KNCAY - Free Report) , Applied Optoelectronics, Inc. (AAOI - Free Report) and Active Power Inc. . All the three companies currently hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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