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Here's Why Investors Should Bet on Cimpress (CMPR) Stock Now

Zacks Equity Research

On Sep 16, we issued an updated research report on Cimpress N.V. CMPR.

Year to date, this Zacks Rank #1 (Strong Buy) stock has returned 22.7%, outperforming the industry’s rally of 18.2%.

Existing Scenario

Of late, Cimpress has been benefiting from strong sales, backed by positive contributions from the buyout of BuildASign (October 2018). The company has successfully expanded its product line to include a wide variety of offerings for its customers' marketing needs. 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. All these augurs well for its growth.

Also, 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.  

Moreover, the implementation of a radical change in Cimpress’ organizational structure by decentralizing operations will improve accountability for customer satisfaction and capital returns, simplify decision-making as well as improve the speed of execution. In addition, the evolved corporate structure is likely to lead to more accountability as it expands geographical boundaries and markets to boost its position as a leading provider of mass customization business products.

Analysts have become bullish on Cimpress. In the past month, the Zacks Consensus Estimate for fiscal 2020 (ending Jun 30, 2020) earnings has increased from $2.77 to $3.22 on account of one upward estimate revision versus none downward.

Other Key Picks

Some other top-ranked stocks from the Zacks Industrial Products sector are Albany International Corporation AIN, DXP Enterprises, Inc. DXPE and Chart Industries, Inc. GTLS. While Albany International currently sports a Zacks Rank #1, DXP Enterprises and Chart Industries carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

DXP Enterprises pulled off average positive surprise of 18.06% in the last four quarters.

Chart Industries came up with average beat of 12.96% in the preceding four quarters.

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