10 Most Undervalued Small-Cap Stocks To Invest In

5. Pitney Bowes Inc. (NYSE:PBI)

Market Cap: $1.92 billion

Forward P/E: 8.86

Number of Hedge Fund Holders: 28

Pitney Bowes Inc. (NYSE:PBI) is a shipping and mailing company that provides logistics, technology, and financial services to small and medium-sized businesses, retailers, large enterprises, and government clients. Its segments are divided into Presort Services, Global Ecommerce, and SendTech Solutions.

2024 was a transformative year for the company, as it made meaningful progress across all of its four strategic initiatives. These included slashing its costs and excess overhead, deleveraging its balance sheet, freeing up trapped cash, and more. It reported a revenue of $2.027 billion for fiscal year 2024, which aligned with its expectations. Adjusted EPS for the year came to $0.82, up 34% over the prior year. Pitney Bowes Inc. (NYSE:PBI) also underwent a 25% growth in adjusted EBIT over the previous year.

The company removed around $30 million in annualized costs during fiscal Q4 2024, bringing its run rate to around $120 million in annualized savings exiting 2024. Management now expects to attain a total of $170 million to $190 million in net annualized savings, up from the previously announced target of $150 million to $170 million. Pitney Bowes Inc. (NYSE:PBI) plans to realize the remaining savings over the course of 2025 and 2026. These cost reductions will be majorly driven by IT system simplifications, overhead reductions, reduced vendor spending, and facility consolidation. The company’s future plans of cost savings and continual improvement rank it fifth on our list of the 10 most undervalued small-cap stocks to invest in.