On Jan 13, Zacks Investment Research upgraded business services provider Cimpress N.V. (CMPR) to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold) largely on the back of healthy long-term fundamentals fuelled by a series of steps to reposition its brand identity. The stock is currently trading at a forward P/E of 24.2x and has long-term earnings growth expectation of 18.2%.
Why the Upgrade?
Cimpress has been shifting its value proposition away from deep discounts and free-offer direct marketing efforts to tap the large market opportunity beyond the traditional base of highly price-sensitive customers. The company is making investments in new markets and the business strategy is focused on higher quality products and delivery, increased customer service and more transparent pricing to promote long-term customer relationships.
Cimpress also changed its corporate name a couple of months back. The change in the corporate name is a conscious effort to distinguish the corporate entity and its technology and operational mass customization platform with the growing portfolio of customer-centric brands like Vistaprint, Drukwerkdeal, Albelli and Pixartprinting. The brands will continue to be an integral part of the company with their respective brand identities and continue to facilitate customized marketing solutions for clients.
Moving forward, Cimpress will make substantial investments over the next five years to develop proprietary software and production technology for better operational capabilities for a shared mass customization platform. This platform will greatly advance its proprietary computer integrated manufacturing technologies to enable mass customization of personalized and unique physical products in small quantities at an affordable price.
All these bullish factors warrant a review of your portfolio basket to consider buying it if you are yet to have this stock or hold it for a little longer if you already own it.
Other Stocks to Consider
Some other stocks in the industry that also look promising include Franklin Covey Co. (FC), NV5 Holdings, Inc. (NVEE) and Stantec Inc. (STN), each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment