Why PITNEY BOWES INC (NYSE:PBI) could fit Mark Minervini’s high-growth criteria

In this article we will dive into PITNEY BOWES INC (NYSE:PBI) as a possible candidate for growth investing. Investors should always do their own research, but we noticed PITNEY BOWES INC showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Checking the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for PBI:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Looking into the high growth metrics of PBI

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. PBI scores a 4 out of 10:

Explosive Earnings Growth

• PBI has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 357.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• Over the past year, PBI has demonstrated 1.0K% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• Over the past 3 months, analysts have adjusted their EPS Estimate for PBI with a 12.5% change. This highlights the evolving outlook on the company's EPS potential.
• With a track record of beating EPS estimates in the last 4 quarters, PBI showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• The operating margin of PBI has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• PBI has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.

Institutional Confidence & Market Strength

• With institutional shareholders at 71.75%, PBI demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• The Relative Strength (RS) of PBI has consistently been strong, with a current 97.74 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. PITNEY BOWES INC demonstrates promising potential for sustained price momentum.

Looking at the Setup

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for PBI is 4:

PBI has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Check the latest full technical report of PBI for a complete technical analysis.

More like this

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.