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Are Investors Undervaluing Pitney Bowes (PBI) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Pitney Bowes (PBI - Free Report) . PBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.51. This compares to its industry's average Forward P/E of 9.70. PBI's Forward P/E has been as high as 440 and as low as 9.51, with a median of 21.21, all within the past year.
We also note that PBI holds a PEG ratio of 0.63. 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 currently sports an average PEG of 0.65. Over the last 12 months, PBI's PEG has been as high as 29.33 and as low as 0.63, with a median of 1.41.
Finally, investors should note that PBI has a P/CF ratio of 9.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PBI's current P/CF looks attractive when compared to its industry's average P/CF of 10.05. Within the past 12 months, PBI's P/CF has been as high as 10.20 and as low as 3.35, with a median of 5.76.
If you're looking for another solid Office Automation and Equipment value stock, take a look at Ricoh Co. (RICOY - Free Report) . RICOY is a # 2 (Buy) stock with a Value score of A.
Additionally, Ricoh Co. has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at -3.10. For RICOY, this valuation metric has been as high as 0.82, as low as 0.60, with a median of 0.74 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Pitney Bowes and Ricoh Co. are likely undervalued currently. And when considering the strength of its earnings outlook, PBI and RICOY sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Pitney Bowes (PBI) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Pitney Bowes (PBI - Free Report) . PBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.51. This compares to its industry's average Forward P/E of 9.70. PBI's Forward P/E has been as high as 440 and as low as 9.51, with a median of 21.21, all within the past year.
We also note that PBI holds a PEG ratio of 0.63. 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 currently sports an average PEG of 0.65. Over the last 12 months, PBI's PEG has been as high as 29.33 and as low as 0.63, with a median of 1.41.
Finally, investors should note that PBI has a P/CF ratio of 9.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PBI's current P/CF looks attractive when compared to its industry's average P/CF of 10.05. Within the past 12 months, PBI's P/CF has been as high as 10.20 and as low as 3.35, with a median of 5.76.
If you're looking for another solid Office Automation and Equipment value stock, take a look at Ricoh Co. (RICOY - Free Report) . RICOY is a # 2 (Buy) stock with a Value score of A.
Additionally, Ricoh Co. has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at -3.10. For RICOY, this valuation metric has been as high as 0.82, as low as 0.60, with a median of 0.74 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Pitney Bowes and Ricoh Co. are likely undervalued currently. And when considering the strength of its earnings outlook, PBI and RICOY sticks out as one of the market's strongest value stocks.