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Here's Why Investors Should Bet on Cimpress (CMPR) Stock Now
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Cimpress plc (CMPR - Free Report) has impressed investors with its recent growth momentum driven by strength in its business, improved product line and acquisitions.
Shares of this Zacks Rank #1 (Strong Buy) company have gained 6.3% against the industry’s decline of 11.7% over the past six months.
Factors to Consider
Cimpress is well positioned to benefit from solid momentum in its PrintBrothers business, owing to strength in the WIRmachenDRUCK unit. Also, the company has expanded its product line to include a wide variety of offerings for meeting customers' marketing needs. This augurs well for its long-term growth.
During the first quarter of fiscal 2020 (ended September 2019), the company incorporated several of Vistaprint segment’s adjacencies businesses (including Vistaprint Corporate Solutions, Vistaprint India and Vistaprint Japan) into the segment. This move will enable these businesses to better leverage the Vistaprint brand, customers, technology and other assets.
Also, the company completed the acquisition of BuildASignin October 2018. Notably, the buyout bolstered its revenues in the second-quarter fiscal 2020 (ended December 2019), on the back of robust sales across its home décor business.
Moreover, Cimpress remains highly committed toward increasing shareholders’ wealth through share repurchase programs. In this regard, it repurchased shares worth $305.3 million in the fiscal second quarter. It is worth noting that in the fiscal second quarter, the company’s adjusted free cash flow improved 14.5% year over year to $177.3 million. We believe that improvement in cash flows will support its capital-allocation strategies.
In addition, Cimpress’ earnings estimates have been trending north over the past month, with two upward estimate revisions for fiscal 2020 (ending June 2020). The Zacks Consensus Estimate for fiscal 2020 has been revised upward from $4.53 to $10.03. In addition, the consensus estimate for fiscal 2021 (ending June 2021) has been revised upward from $4.72 to $5.98 over the same time frame.
H&R Block delivered positive earnings surprise of 1.88%, on average, in the trailing four quarters.
SP Plus delivered average positive earnings surprise of 11.24% in the trailing four quarters.
Emerald Expositions delivered positive earnings surprise of 7.20%, on average, in the trailing four quarters.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Here's Why Investors Should Bet on Cimpress (CMPR) Stock Now
Cimpress plc (CMPR - Free Report) has impressed investors with its recent growth momentum driven by strength in its business, improved product line and acquisitions.
Shares of this Zacks Rank #1 (Strong Buy) company have gained 6.3% against the industry’s decline of 11.7% over the past six months.
Factors to Consider
Cimpress is well positioned to benefit from solid momentum in its PrintBrothers business, owing to strength in the WIRmachenDRUCK unit. Also, the company has expanded its product line to include a wide variety of offerings for meeting customers' marketing needs. This augurs well for its long-term growth.
During the first quarter of fiscal 2020 (ended September 2019), the company incorporated several of Vistaprint segment’s adjacencies businesses (including Vistaprint Corporate Solutions, Vistaprint India and Vistaprint Japan) into the segment. This move will enable these businesses to better leverage the Vistaprint brand, customers, technology and other assets.
Also, the company completed the acquisition of BuildASignin October 2018. Notably, the buyout bolstered its revenues in the second-quarter fiscal 2020 (ended December 2019), on the back of robust sales across its home décor business.
Moreover, Cimpress remains highly committed toward increasing shareholders’ wealth through share repurchase programs. In this regard, it repurchased shares worth $305.3 million in the fiscal second quarter. It is worth noting that in the fiscal second quarter, the company’s adjusted free cash flow improved 14.5% year over year to $177.3 million. We believe that improvement in cash flows will support its capital-allocation strategies.
In addition, Cimpress’ earnings estimates have been trending north over the past month, with two upward estimate revisions for fiscal 2020 (ending June 2020). The Zacks Consensus Estimate for fiscal 2020 has been revised upward from $4.53 to $10.03. In addition, the consensus estimate for fiscal 2021 (ending June 2021) has been revised upward from $4.72 to $5.98 over the same time frame.
Other Key Picks
Some other top-ranked stocks from the same space are H&R Block, Inc. (HRB - Free Report) , SP Plus Corporation (SP - Free Report) and Emerald Expositions Events, Inc. (EEX - Free Report) . All these companies carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
H&R Block delivered positive earnings surprise of 1.88%, on average, in the trailing four quarters.
SP Plus delivered average positive earnings surprise of 11.24% in the trailing four quarters.
Emerald Expositions delivered positive earnings surprise of 7.20%, on average, in the trailing four quarters.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>