We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Sep 17, we issued an updated research report on Cimpress N.V. (CMPR - Free Report) .
In the past year, this Zacks Rank #3 (Hold) stock has yielded a return of 43.1% compared with the industry’s growth of 15.2%.
Let’s delve deeper and discuss the company’s potential growth drivers and possible headwinds.
Of late, Cimpress has been focusing on digital marketing services comprising websites, email marketing, online search marketing and social media marketing. We believe that the company's web presence and online tools for customer use are well established. Also, it is making steady progress with investments in new markets and the business strategy is now focused on higher quality products and delivery, increased customer service and more transparent pricing.
Also, Cimpress has been acquiring firms with complementary product offerings and expects to ramp up its revenues with operating synergies through economies of scale and technological collaboration to serve a wide spectrum of customers across the world. The company's product line has expanded to include a wide variety of offerings for its customers' marketing needs. All these augurs well for its long-term growth.
Moreover, the company’s management has implemented a radical change in the organizational structure by decentralizing operations in order to improve accountability for customer satisfaction and capital returns, simplify decision-making and improve the speed of execution. The evolved corporate structure will likely lead to more accountability as the company expands its wings in new geographical boundaries and markets to strengthen its position as a leading provider of mass customization business products.
However, Cimpress is currently dealing with rising cost of revenues. For instance, in the fourth quarter of fiscal 2018, the company's cost of revenues increased 13.4% year over year and jumped 23.2% (CAGR) in the last five fiscals (2014-2018). Gross margin was down 70 basis points (bps) in fourth-quarter fiscal 2018 while decreased 80 bps in fiscal 2018.
Further, increases in debt levels can increase the company’s financial obligations. In fiscal 2018, its interest expenses increased 20.6% year over year. This apart, headwinds in currency translation could add to the woes as the company generates almost half of its revenues outside the United States.
Key Picks
Some better-ranked stocks in the same space are Altra Industrial Motion Corp. , Brady Corporation (BRC - Free Report) and IDEX Corporation (IEX - Free Report) . While Altra Industrial Motion sports a Zacks Rank #1 (Strong Buy), Brady and IDEX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion surpassed the Zacks Consensus Estimate thrice in the trailing four quarters, delivering a positive average earnings surprise of 4.01%.
Brady exceeded the Zacks Consensus Estimate thrice in the trailing four quarters with an average positive earnings surprise of 5.20%.
IDEX outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 4.37%.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Image: Bigstock
Cimpress (CMPR) Displays Bright Prospects, Risks Remain
On Sep 17, we issued an updated research report on Cimpress N.V. (CMPR - Free Report) .
In the past year, this Zacks Rank #3 (Hold) stock has yielded a return of 43.1% compared with the industry’s growth of 15.2%.
Let’s delve deeper and discuss the company’s potential growth drivers and possible headwinds.
Of late, Cimpress has been focusing on digital marketing services comprising websites, email marketing, online search marketing and social media marketing. We believe that the company's web presence and online tools for customer use are well established. Also, it is making steady progress with investments in new markets and the business strategy is now focused on higher quality products and delivery, increased customer service and more transparent pricing.
Also, Cimpress has been acquiring firms with complementary product offerings and expects to ramp up its revenues with operating synergies through economies of scale and technological collaboration to serve a wide spectrum of customers across the world. The company's product line has expanded to include a wide variety of offerings for its customers' marketing needs. All these augurs well for its long-term growth.
Moreover, the company’s management has implemented a radical change in the organizational structure by decentralizing operations in order to improve accountability for customer satisfaction and capital returns, simplify decision-making and improve the speed of execution. The evolved corporate structure will likely lead to more accountability as the company expands its wings in new geographical boundaries and markets to strengthen its position as a leading provider of mass customization business products.
However, Cimpress is currently dealing with rising cost of revenues. For instance, in the fourth quarter of fiscal 2018, the company's cost of revenues increased 13.4% year over year and jumped 23.2% (CAGR) in the last five fiscals (2014-2018). Gross margin was down 70 basis points (bps) in fourth-quarter fiscal 2018 while decreased 80 bps in fiscal 2018.
Further, increases in debt levels can increase the company’s financial obligations. In fiscal 2018, its interest expenses increased 20.6% year over year. This apart, headwinds in currency translation could add to the woes as the company generates almost half of its revenues outside the United States.
Key Picks
Some better-ranked stocks in the same space are Altra Industrial Motion Corp. , Brady Corporation (BRC - Free Report) and IDEX Corporation (IEX - Free Report) . While Altra Industrial Motion sports a Zacks Rank #1 (Strong Buy), Brady and IDEX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion surpassed the Zacks Consensus Estimate thrice in the trailing four quarters, delivering a positive average earnings surprise of 4.01%.
Brady exceeded the Zacks Consensus Estimate thrice in the trailing four quarters with an average positive earnings surprise of 5.20%.
IDEX outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 4.37%.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>