Gold Medal Stocks to Buy Now #2: Pitney Bowes (PBI)
Don’t laugh at Pitney Bowes (PBI). PBI’s combination of snail-mail services and digital-age software and hardware solutions is driving earnings and revenue growth. Fourth-quarter earnings per share easily beat Wall Street estimates on a decent 1.5% gain in sales.
After rallying sharply in January, PBI stock is up 6% for the year-to-date, and it’s up a whopping 83% in the past year. Yet, PBI stock trades at 12 times forward earnings when the S&P 500 fetches 15. Furthermore, PBI stock has an ROE of 72%, which screams quality.
Company guidance has PBI stock generating earnings of $1.75 to $1.90 a share this year, vs. Wall Street estimates of $1.87, so that’s promising.
PBI stock also offers a nice 3.1% dividend yield, though it should be pointed out that Pitney Bowes halved its payout just a year ago.