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Should Value Investors Buy Pitney Bowes (PBI) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Pitney Bowes (PBI - Free Report) . PBI is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.78, which compares to its industry's average of 9.69. 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.
Investors should also note that PBI holds a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PBI's industry currently sports an average PEG of 0.98. Over the past 52 weeks, PBI's PEG has been as high as 1.26 and as low as 0.42, with a median of 0.54.
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?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Pitney Bowes (PBI - Free Report) . PBI is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.78, which compares to its industry's average of 9.69. 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.
Investors should also note that PBI holds a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PBI's industry currently sports an average PEG of 0.98. Over the past 52 weeks, PBI's PEG has been as high as 1.26 and as low as 0.42, with a median of 0.54.
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.