Unisys Stock is at a 4.92X P/E: Should You Buy, Sell or Retain?

Core Insights - Unisys Corporation (UIS) is trading at a significant discount with a forward 12-month price-to-earnings (P/E) ratio of 4.92X, compared to the industry average of 29.36X and the broader Computer and Technology sector's 26.09X, indicating potential undervaluation by the market [1][7] - Despite the valuation gap, Unisys shares have decreased by 34.8% over the past six months, underperforming the industry's decline of 12.5% [5] Financial Performance - The earnings per share (EPS) estimate for 2025 has increased from 25 cents to 58 cents, reflecting a growth rate of 28.9% and strong analyst confidence [7][15] - The Zacks Consensus Estimate for UIS' 2025 EPS has been revised upward, indicating positive sentiment regarding the company's near-term prospects [15] Business Developments - Unisys has secured significant contract wins, including a deal to support 380,000 devices for a global technology company and another for over 21,000 devices for a biotech client, highlighting the growing traction in device subscription services [8][9] - The company has added two technology partners, Easy Vista and Freshworks, to enhance its IT Service Management platform capabilities [9] Strategic Initiatives - Unisys is focused on innovation in artificial intelligence and cybersecurity, launching new services such as Post-Quantum Cryptography assessment and expanding AI-driven solutions [10] - The company's long-term strategy, "Clear Path Forward 2050," emphasizes software innovation, secure hybrid infrastructure, and client-centric service models to enhance platform stickiness and modernize applications [11][12] Market Position - Unisys is positioned alongside competitors like C3.ai, SoundHound, and Genpact, with a strategy aimed at increasing client engagement and long-term revenue visibility [11][17] - The company is gaining traction in high-value areas such as device subscription services and AI-driven solutions, supported by major contract wins and expanding partnerships [17][18]