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Despite Fast-paced Momentum, Pitney Bowes (PBI) Is Still a Bargain Stock
Pitney BowesPitney Bowes(US:PBI) ZACKSยท2024-07-19 13:51

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Pitney Bowes (PBI) as a Momentum Stock - PBI has shown a price increase of 42.9% over the past four weeks, indicating growing investor interest [2] - Over the past 12 weeks, PBI's stock gained 62.6%, demonstrating its ability to deliver positive returns over a longer timeframe [3] - PBI has a beta of 1.99, suggesting it moves 99% higher than the market in either direction, indicating fast-paced momentum [3] Group 3: Earnings Estimates and Valuation - PBI has a Momentum Score of B, suggesting it is a favorable time to invest in the stock [3] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [4] - PBI is trading at a Price-to-Sales ratio of 0.38, indicating it is reasonably valued at 38 cents for each dollar of sales [4] Group 4: Additional Investment Opportunities - Besides PBI, there are other stocks that meet the criteria of 'Fast-Paced Momentum at a Bargain' [5] - The Zacks Premium Screens offer various strategies to identify potential winning stocks based on different investing styles [5]