In This Article:
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.42. This compares to its industry's average Forward P/E of 7.65. Over the past year, PBI's Forward P/E has been as high as 72.55 and as low as 6.49, with a median of 8.85.
Investors will also notice that PBI has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PBI's PEG compares to its industry's average PEG of 0.51. Over the past 52 weeks, PBI's PEG has been as high as 4.84 and as low as 0.43, with a median of 0.59.
Value investors will likely look at more than just these metrics, but the above data helps show that Pitney Bowes is likely undervalued currently. And when considering the strength of its earnings outlook, PBI sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pitney Bowes Inc. (PBI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).