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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Pitney Bowes (PBI) is a stock many investors are watching right now. PBI is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.78, while its industry has an average P/E of 9.52. 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 0.59. 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 PEG compares to its industry's average PEG of 0.64. Within the past year, PBI's PEG has been as high as 1.26 and as low as 0.42, with a median of 0.54.
These are only a few of the key metrics included in Pitney Bowes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PBI looks like an impressive value stock at the moment.
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Pitney Bowes Inc. (PBI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
