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Cimpress (CMPR) to Gain From Solid Product Line, Buyouts

Zacks

On Aug 14, we issued an updated research report on Cimpress N.V. CMPR.

In the past three months, this Zacks Rank #1 (Strong Buy) stock has rallied 41.6% compared with the industry’s growth of 17%.



Existing Scenario

Cimpress has been gaining from robust sales, supported by positive contributions from BuildASign acquisition (October 2018). Also, the scale of the company’s operation gives small business customers access to quality products and printing services that would otherwise have been out of their reach. The company's product line has expanded to include a wide variety of offerings for its customers' marketing needs. All these augurs well for Cimpress’ growth.

Also, the company’s implementation of a radical change in the organizational structure by decentralizing operations will improve accountability for customer satisfaction and capital returns, simplify decision-making and improve the speed of execution. The evolved corporate structure is likely to lead to more accountability as it expands into new geographical boundaries and markets to strengthen its position as a leading provider of mass customization business products.

Moreover, Cimpress remains highly committed toward increasing shareholder wealth through share repurchase programs. Notably, in fourth-quarter fiscal 2019 (ended Jun 30, 2019), the company repurchased approximately $29.4 million of its shares. Such diligent capital deployment strategies will work in its favor.

In addition, analysts have become increasingly bullish on Cimpress. In the past month, the Zacks Consensus Estimate for fiscal 2020 (ending Jun 30, 2020) earnings has increased from $2.68 to $2.77 on account of one upward estimate revision versus none downward.

Other Stocks to Consider

Some other top-ranked stocks from the Zacks Industrial Products sector are Zebra Technologies Corporation ZBRA, Albany International Corporation AIN and Tetra Tech, Inc. TTEK. While Zebra Technologies currently sports a Zacks Rank #1, Albany International and Tetra Tech carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zebra Technologies pulled off average positive surprise of 5.61% in the last four quarters.

Albany International delivered average positive surprise of 15.98% in the trailing four quarters.

Tetra Tech came up with average beat of 8.72% in the preceding four quarters.

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