Pitney Bowes has a low P/E ratio of 6.67X and strong growth potential

From Nasdaq: 2025-01-21 09:57:00

Pitney Bowes (PBI) is trading at a low P/E ratio of 6.67X, much lower than the tech sector and S&P 500 averages. Despite this, PBI shares have surged 65.5% in the past year, outperforming the sector and S&P 500. With a strong customer base and partnerships with industry giants, PBI is well-positioned for growth.

Pitney Bowes is divesting its underperforming Global Ecommerce segment to accelerate growth. The sale is expected to boost annual earnings by $136 million, allowing PBI to focus on higher-margin businesses. The company’s efforts to reduce debt and improve liquidity are already showing positive results, with significant cost savings achieved.

Pitney Bowes is demonstrating robust financial performance, with strong improvement in operating profit and margin. Analysts are optimistic about its earnings growth potential, with estimates showing 184% year-over-year growth. With its strategic realignment and promising outlook, PBI offers a compelling investment opportunity for investors.

Experts recommend buying PBI stock now, citing its strong financial recovery, undervalued price, and growth prospects. The company’s divestiture of the GEC segment and robust partnerships make it an attractive investment. With a Zacks Rank #1 (Strong Buy), PBI is set for sustainable growth and profitability.



Read more at Nasdaq: Does a P/E Multiple of 6.67X Make Pitney Bowes a Strong Buy?