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Pitney Bowes Hits a 52-Week High: Should Investors Buy the Stock Now?

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Key Takeaways

  • Pitney Bowes is seeing SendTech stabilize with improved bookings and efforts to boost retention and sales.
  • PBI is gaining traction in Presort through new business wins, pipeline growth and potential tuck-in deals.
  • Pitney Bowes is leveraging its bank and simpler shipping software to support long-term growth.

Pitney Bowes Inc. (PBI - Free Report) touched a new 52-week high of $17.59 during last Friday’s trading session. The stock pulled back to the end of the trading session at $17.32, up 1.05% from the previous day’s closing price of $17.14.

In the past six months, shares of Pitney Bowes have increased 67.7%, outperforming the Zacks Computer and Technology sector and the S&P 500, as evidenced by the chart below.

PBI Stock’s Past 6 Months’ Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

The company is benefiting from improving trends across its core businesses, supported by signs of stabilization in SendTech, growing momentum in the Presort business and a customer-focused strategy for its shipping software portfolio. The strategic use of Pitney Bowes Bank and continued focus on expanding customer relationships provide additional long-term growth opportunities. Together, these initiatives strengthen the company's competitive position and support its long-term growth prospects.

Pitney Bowes stock has outperformed some other players in the past six months, including FedEx (FDX - Free Report) , United Parcel Service (UPS - Free Report) and Cintas Corporation (CTAS - Free Report) . In the said time frame, FedEx and United Parcel Service have gained 19.8% and 8%, respectively, while Cintas has declined 6%.

Let us take a closer look at the factors driving Pitney Bowes’ recent gains and what this may signal for the stock going forward.

SendTech Recovery Strengthens Pitney Bowes' Prospects

Pitney Bowes is making progress in improving the performance of its SendTech business, with the segment showing potential signs of stabilizing after a prolonged period of decline. In the first quarter of 2026, revenues declined less than 1%, while bookings increased year over year for the first time. The company is also strengthening customer retention efforts, expanding sales initiatives and simplifying its shipping software offerings, supporting the outlook for improved performance. The focus on customer acquisition, predictive analytics and product simplification reflects a broader effort to strengthen the core business and create a more sustainable growth profile over the long term.

Growing Presort Momentum Supports PBI's Business

The Presort business is benefiting from improving competitive positioning and growing customer demand. In the first quarter of 2026, the company stopped customer losses, continued to win new business and expanded its sales pipeline. The company also expects growth to return in the second half of the year as these trends continue to strengthen. Alongside organic growth initiatives, the company is exploring tuck-in acquisition opportunities that could expand scale and improve long-term value creation within the Presort business.

Pitney Bowes Bank Creates Additional Growth Opportunities

The company's banking business provides a competitive advantage that extends beyond traditional financial operations. In the first quarter of 2026, the company continued to make operational improvements while positioning the bank as a financing partner for its shipping software customers, creating opportunities that many competitors cannot easily replicate. The company also views the bank as an important differentiator for customers with significant shipping-related cash flows, creating opportunities to deepen customer relationships and support business growth.

Customer-Focused Strategy Strengthens PBI's Shipping Software

The company is reshaping its shipping software business with a stronger focus on customer needs and a simpler product portfolio. Efforts are underway to narrow and streamline software offerings while aligning product development more closely with customer demand rather than technology-driven initiatives. This approach is expected to improve product competitiveness, strengthen customer engagement and support recurring revenue growth over time as adoption of enterprise shipping solutions expands.

PBI Stock’s Discounted Valuation

PBI stock is currently trading at a discout compared with the sector, with a forward 12-month price-to-earnings (P/E) ratio of 10.3, as evidenced by the chart below.

Price-to-Earnings F12M

Zacks Investment Research
Image Source: Zacks Investment Research

Conversely, industry players, such as FedEx, United Parcel Service and Cintas, have P/E multiples of 16.68, 14.81 and 32.4, respectively.

Earnings Estimate Revision of PBI

PBI’s earnings estimates for 2026 and 2027 have trended upward in the past 60 days to $1.62 and $1.76 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 20% and 8.4%, respectively.

Estimates Revision Trend

Zacks Investment Research
Image Source: Zacks Investment Research

Should You Buy PBI Stock?

Pitney Bowes has made meaningful progress across its core businesses. Stabilizing trends in SendTech, growing momentum in Presort, a more focused shipping software strategy and the strategic advantages offered by Pitney Bowes Bank create multiple avenues for long-term growth. The company's emphasis on customer retention, sales execution and disciplined investment further strengthens its transformation efforts.

With a Zacks Rank #1 (Strong Buy) at present, Pitney Bowes appears well positioned to benefit from improving business fundamentals and offers an attractive opportunity for investors seeking long-term value. You can see the complete list of today's Zacks #1 Rank stocks here.

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