Back to top

Image: Bigstock

Is Pitney Bowes (PBI) Stock Undervalued Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Pitney Bowes (PBI - Free Report) is a stock many investors are watching right now. PBI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.64, which compares to its industry's average of 8.78. Over the past year, PBI's Forward P/E has been as high as 18.96 and as low as 6.30, with a median of 8.11.

We also note that PBI holds a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PBI's industry has an average PEG of 0.59 right now. PBI's PEG has been as high as 1.26 and as low as 0.42, with a median of 0.54, all within the past year.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pitney Bowes Inc. (PBI) - free report >>

Published in