Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric th ...

Back in December 2023, we had presented the case for a long position in Pitney Bowes (NYSE: PBI ), an innovative shipping and mailing specialist, that primarily services corporations that account for the bulk of the Fortune 500 (amongst others). PBI, has since, goneAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions ...

Pitney Bowes (PBI) shares have lost 14.5% in the past month, underperforming the Zacks Computer and Technology sector’s decline of 12.2%. The recent decline in PBI’s stock price stems from broader market weakness.A widespread sell-off in tech stocks, triggered by fears of rising trade tensions and slowing economic growth concerns, has put pressure on the entire sector, including Pitney Bowes. However, considering PBI’s strong fundamentals, investors’ concerns seem overblown.Pitney Bowes One Month Price Perf ...

Company Overview - Pitney Bowes (PBI) is headquartered in Stamford and operates in the Computer and Technology sector [3] - The stock has experienced a price change of 10.36% since the beginning of the year [3] Dividend Information - Pitney Bowes currently pays a dividend of $0.06 per share, resulting in a dividend yield of 3% [3] - This yield is higher than the Office Automation and Equipment industry's yield of 2.42% and the S&P 500's yield of 1.76% [3] - The company's annualized dividend of $0.24 has increased by 20% from the previous year [4] - Over the last 5 years, Pitney Bowes has increased its dividend once on a year-over-year basis, with an average annual increase of 1.05% [4] - The current payout ratio is 36%, indicating that the company paid out 36% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Pitney Bowes' earnings for 2025 is $1.21 per share, reflecting a year-over-year earnings growth rate of 47.56% [5] Investment Appeal - Pitney Bowes is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Company Overview - Pitney Bowes (PBI) currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3] - PBI has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4] Group 2: Performance Metrics - Over the past week, PBI shares increased by 4.94%, while the Zacks Office Automation and Equipment industry declined by 0.53% [6] - In the last month, PBI's price rose by 14.71%, significantly outperforming the industry's 2.93% [6] - PBI shares have risen by 27.13% over the past quarter and 142.23% over the last year, compared to the S&P 500's -4.73% and 14.1% respectively [7] Group 3: Trading Volume - PBI's average 20-day trading volume is 3,170,652 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 4: Earnings Outlook - In the past two months, one earnings estimate for PBI increased, while none decreased, raising the consensus estimate from $1.08 to $1.21 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive earnings momentum [10] Group 5: Conclusion - Given the strong performance metrics and positive earnings outlook, PBI is positioned as a promising investment opportunity with a Momentum Score of B [12]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2][3] Zacks Style Scores - Each stock is rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings [5] - The Momentum Score assesses trends in stock prices and earnings estimates to identify favorable investment opportunities [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to select the best options [9] Investment Example: Pitney Bowes (PBI) - Pitney Bowes is a leading provider of mail processing equipment and integrated mail solutions, currently rated 1 (Strong Buy) with a VGM Score of A [11] - The stock has a Momentum Style Score of B and has increased by 14.7% in the past four weeks [11] - Analysts have revised PBI's earnings estimate upwards, with the Zacks Consensus Estimate rising by $0.13 to $1.21 per share, and the company has an average earnings surprise of 96.6% [12]

Strategic Transformation - The Company has undergone a strategic transformation over the past year, impacting its business segments significantly[17] Financial Solutions - SendTech Solutions offers financing alternatives for equipment and product purchases, including a revolving credit solution for postage payments[17] Postal Services - The Company is the largest workshare partner of USPS, providing mail sortation services that allow clients to qualify for postal workshare discounts[20] Debt and Interest Rates - Approximately 61% of the Company's debt is at fixed rates, while 39% is at variable rates, with a weighted average interest rate of 8.3% for variable rate debt as of December 31, 2024[192] Currency Impact - A 1% change in the British Pound, Euro, and Canadian Dollar would impact earnings by $4 million, $3 million, and $2 million, respectively[190] Client Base - The Company maintains a diverse client base, with no single client comprising more than 10% of consolidated net sales in 2024 or 2023[194] Research and Development - The Company invests in research and development to enhance existing products and develop new solutions[27] Employee Benefits - The Company provides a competitive benefits package, including medical, dental, and life insurance, to attract and retain talent[32] Workforce - The Company has approximately 7,200 employees, with 78% located in the United States[31] Regulatory Environment - The Company is subject to various regulations, including those from postal authorities and financial institutions, impacting its operations[29]

Group 1 - Justin Dopierala is the President and Founder of DOMO Capital, with a strong academic background including a Bachelor of Science and an MBA from Concordia University [1] - DOMO Capital Management has been operational since 2008, with Justin serving as the portfolio manager since its inception [1] - The investment philosophy of DOMO is influenced by principles from "The Intelligent Investor," emphasizing long-term investment strategies over short-term market fluctuations [1] Group 2 - PBI is currently included in the DOMO Concentrated All Cap Value Composite, indicating a strategic investment position [3] - DOMO Capital Management is a state-registered investment adviser in multiple states, ensuring compliance with regulatory requirements [3] - The firm emphasizes the importance of individualized investment strategies tailored to specific investor situations [3]

Core Viewpoint - Pitney Bowes (PBI) has experienced a significant stock price increase of 46.6% over the past month, outperforming both the Zacks Computer and Technology sector and the S&P 500, indicating strong investor confidence in the company's position in the global logistics and technology market [1]. Group 1: Customer Base and Partnerships - Pitney Bowes boasts a broad customer base, serving over 90% of Fortune 500 companies, which underscores its market leadership [2]. - Collaborations with major industry players such as Amazon, eBay, Shopify, and Salesforce enhance Pitney Bowes' standing in the logistics and technology sectors [2][3]. - The company provides cross-border e-commerce logistics services to eBay in the U.S. and U.K., and its partnership with Amazon Web Services (AWS) facilitates seamless integration with advanced technologies [3]. Group 2: Strategic Divestiture - Pitney Bowes has divested its underperforming Global Ecommerce (GEC) segment, recognizing it as a liability, with a one-time exit cost of $165 million, of which $120 million has been paid in 2024 [5][6]. - This strategic move allows the company to concentrate on higher-margin businesses, improving profitability and creating a leaner operational structure [6]. Group 3: Financial Performance - The company has made strides in addressing its long-term debt and enhancing liquidity, repatriating $117 million from overseas operations and accumulating over $100 million in excess cash for debt reduction [8][9]. - In the fourth quarter of 2024, Pitney Bowes reported a 33% year-over-year increase in adjusted operating profit to $114 million, with a margin expansion of 580 basis points to 22.2% [10]. Group 4: Earnings Growth Potential - Analysts have raised the Zacks Consensus Estimate for 2025 earnings by 9 cents to $1.21, reflecting a projected 47.6% year-over-year growth [11]. - The stock has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 96.64% [11]. Group 5: Valuation and Investment Opportunity - Despite its strong performance, Pitney Bowes trades at a forward 12-month P/E ratio of 8.70X, significantly lower than the sector average of 26.19X and the S&P 500 average of 22.66X, indicating an attractive valuation [12]. - The stock is currently trading above its 50-day moving averages, suggesting a bullish trend [12]. Group 6: Conclusion - Pitney Bowes is positioned for sustainable growth due to its strategic realignment, cost-cutting initiatives, and strong partnerships, making it a compelling investment opportunity [14][15].

Core Viewpoint - Investors are encouraged to consider Pitney Bowes (PBI) due to solid improvements in earnings estimates and positive short-term price momentum, which may continue as the earnings outlook improves [1] Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding Pitney Bowes' earnings prospects, which is expected to positively influence its stock price [2] - There has been strong consensus among analysts in raising earnings estimates, significantly increasing the consensus estimates for the next quarter and the full year [3] Current-Quarter Estimates - For the current quarter, Pitney Bowes is expected to earn $0.28 per share, reflecting a remarkable change of +2900% from the previous year's reported figure [4] - Over the last 30 days, one estimate has increased with no negative revisions, leading to a 7.69% rise in the Zacks Consensus Estimate [4] Current-Year Estimates - The expected earnings for the full year are $1.21 per share, representing a +47.56% change from the prior year [5] - Similar to the current quarter, one estimate has moved higher in the past month with no negative revisions, resulting in a 12.04% increase in the consensus estimate [5] Zacks Rank - Pitney Bowes currently holds a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating a strong potential for outperformance [6] - Research shows that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6] Stock Performance - Over the past four weeks, Pitney Bowes shares have increased by 34.1%, suggesting that investors are responding positively to the company's impressive estimate revisions [7]