Pitney Bowes (PBI) Set to Utilize AmbiSort Robotic System

Pitney Bowes PBI is working on setting up AmbiSort robots across its entire Ecommerce hubs’ footprint in the country over the next five years. The announcement follows the company’s recent execution of a pilot run of the AmbiSort robotic systems at its Bloomington, CA e-commerce hub.

By leveraging robotic systems, Pitney Bowes is looking to boost capacity as well as scalability of it operations, while simultaneously reducing costs and improving safety for its workforce.

AmbiSort robots, powered by Artificial Intelligence (AI), are designed by Ambi Robotics. In comparison with manual processes, AmbiSort robots offer double the speed of picking, placing, and packing parcels noted Pitney Bowes.

These robots will help Pitney Bowes in automating and accelerating parcel sorting to the last mile delivery providers amid a massive increase in parcel volume owing to the COVID-19 crisis. Pitney Bowes is one of the largest providers of mail processing equipment and integrated mail solutions across the world.

Pitney Bowes Inc. Price and Consensus

 

Pitney Bowes Inc. Price and Consensus

Pitney Bowes Inc. price-consensus-chart | Pitney Bowes Inc. Quote

 

Pitney Bowes’ efforts to transform its e-commerce logistics network to make it more customer friendly is expected to drive the top line in the coming days. This is expected to instill investors’ optimism in the stock.

In the past year, shares of Pitney Bowes have skyrocketed 241.5% compared with industry’s gain of 20%.

Pitney Bowes Ecommerce Business Drives Growth

Strength in Pitney Bowes Global E-commerce and Presort Services domain bodes well amid pandemic-led e-commerce boom.

In the last reported quarter, Global E-commerce revenues jumped 41% (up 40% after adjusting for currency) to $413 million, driven by robust growth across Domestic Parcel, Digital Delivery and Cross Border Services volumes. On a year-over-year basis, Presort Services of $143 million were up 2% (up 2% after adjusting for currency) driven by growth in Marketing Mail.

The earlier acquisitions of Newgistics (2017) and Borderfree (2015) buyout have bolstered its e-commerce business and added toward the overall capability mix by providing best-in-class capabilities and strengthening its portfolio.

Further, improvement in business services, driven by increased usage of shipping offerings, augurs well for the company’s prospects in the long haul.

Recently, the company roped in International Business Machines IBM to help implement hybrid cloud computing across its operations and drive business growth.

However, increasing transportation costs in both Ecommerce and Presort businesses along with uncertainties related to the COVID-19 outbreak and its negative impact on consumer demand and supply chains are persistent concerns.

Zacks Rank & Stocks to Consider

At present, Pitney Bowes carries a Zack Rank #3 (Hold).     

Some better-ranked stocks in the broader sector are Zoom Video ZM and Silicon Motion Technology SIMO. Both the stocks flaunt a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Zoom Video and Silicon Motion is currently pegged at 15.6% and 8%, respectively.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
International Business Machines Corporation (IBM): Free Stock Analysis Report
 
Pitney Bowes Inc. (PBI): Free Stock Analysis Report
 
Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report
 
Zoom Video Communications, Inc. (ZM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.