Pitney Bowes (PBI)

Shares of shipping and mailing solutions provider Pitney Bowes (NYSE:PBI) jumped 10.6% in the morning session after the U.S. Postal Service (USPS) announced new postage rate increases set to take effect on July 13, 2025. The USPS revealed that prices for its mailing services will rise by an average of 7.4%, which includes a 5-cent increase for a First-Class Mail Forever stamp to $0.78. 

Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But cutbacks in corporate spending and the threat of new AI products have kept sentiment in check, and over the past six months, the industry’s return was flat while the S&P 500 climbed by 7.1%.

Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor. The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Pitney Bowes (NYSE:PBI) and its peers.

Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

Shipping and mailing solutions provider Pitney Bowes (NYSE:PBI) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 40.6% year on year to $493.4 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $1.98 billion at the midpoint. Its non-GAAP profit of $0.33 per share was 22.2% above analysts’ consensus estimates.

Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.

Shares of shipping and mailing solutions provider Pitney Bowes (NYSE:PBI) jumped 9.9% in the afternoon session after the company appointed sitting director Kurt Wolf as its Chief Executive Officer. 

Wolf would replace Lance Rosenzweig, who will retire as CEO and director to become a consultant to the company.

Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts. But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.

Shipping and mailing solutions provider Pitney Bowes (NYSE:PBI) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 40.6% year on year to $493.4 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $1.98 billion at the midpoint. Its non-GAAP profit of $0.33 per share was 22.2% above analysts’ consensus estimates.

Shipping and mailing solutions provider Pitney Bowes (NYSE:PBI) will be reporting earnings tomorrow after the bell. Here’s what investors should know.

The Russell 2000 is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.