Core Insights - The current Q4 earnings season highlights the importance of cash flow over mere profit numbers for investors seeking to identify stocks with strong financial health [1][2] Cash Flow Importance - Cash flow is a critical indicator of a company's financial health, providing flexibility for decision-making, investment opportunities, and sustaining growth [2] - Companies with positive cash flow can meet debt obligations, cover expenses, reinvest, and return wealth to shareholders, while negative cash flow indicates declining liquidity and reduced operational flexibility [4] Growth and Management Efficiency - Positive cash flow alone does not guarantee future growth; increasing cash flow is essential as it reflects management's efficiency in cash management and reduces reliance on external financing [5] Screening Parameters - A screening process was conducted to identify stocks with increasing cash flow, focusing on those whose latest quarter cash flow met or exceeded the 5-year average per share [6] - Stocks were selected based on Zacks Rank 1, average broker ratings, current price thresholds, and VGM Scores of B or better [7] Selected Stocks - Enova International, Inc. (ENVA) shows improving cash flow trends, with a revised Zacks Consensus Estimate for 2026 earnings up by 6.2% to $15.13 per share and a VGM Score of A [8] - Cimpress plc (CMPR) benefits from rising cash flows due to increased demand for customized print and digital products, with a 1.1% improvement in the 2026 earnings estimate to $3.54 and a VGM Score of A [9] - DNOW Inc. (DNOW) is a leading provider in energy and industrial solutions, with an 8.7% upward revision in the 2026 earnings estimate to $1.00 and a VGM Score of A [10] - Pursuit Attractions and Hospitality, Inc. (PRSU) operates various hospitality destinations, with a 13.9% increase in the 2026 earnings estimate to $1.31 and a VGM Score of A [11]

Company Overview - Cimpress (CMPR) is valued at $1.95 billion and operates as an online supplier of high-quality graphic design services and customized printed products, including business cards, brochures, websites, e-commerce platforms, calendars, address labels, note pads, and signage [1]. Technical Analysis - Cimpress has achieved a new 52-week high of $82.43 on February 2, with shares up 2.35% since a "Buy" signal was issued on January 9 [2][5]. - The stock maintains a 100% "Buy" opinion from Barchart, with strong technical momentum and a Weighted Alpha of +59.21 [8]. - Over the past year, shares have increased by more than 20%, and the stock has gained 21.15% over the past 52 weeks [7][8]. - The Relative Strength Index (RSI) is currently at 63.04, indicating strong momentum, with a technical support level around $78.83 [8]. Market Performance - Cimpress recently traded at $80.54, with a 50-day moving average of $73.19, and has made 10 new highs, up 22.66% over the past month [8]. - Revenue is projected to grow by 8.27% this year and an additional 5.47% next year [8]. Analyst Sentiment - Analyst ratings for Cimpress include 3 "Strong Buy" ratings with price targets ranging from $83 to $90, while Value Line rates the stock "Highest" with targets between $27 and $100 [10]. - Morningstar views Cimpress as 23% undervalued, with a fair value estimate of $109.99 [10]. - The stock has a trailing price-earnings ratio of 86.88x, and short interest is 8.86% of the float, with 15.41 days to cover [8][10].

Economic Overview - The Federal Reserve is unlikely to implement a rate cut in January, having indicated only one potential cut in its last meeting, but investors are hopeful for more cuts following recent economic data showing easing inflation in late 2025 [1][7] - High inflation has been a significant challenge for the Federal Reserve, compounded by a shrinking labor market raising concerns about economic weakness; however, recent data indicates that inflation eased in November while the labor market remains stable [2][4] Inflation Data - The Bureau of Labor Statistics reported that the consumer price index (CPI) rose by 0.2% in November, lower than the expected 0.3% increase; year-over-year, CPI climbed 2.7%, below the forecast of 3.1% [4] - Core CPI, excluding food and energy, also increased by 0.2% sequentially and 2.6% year-over-year, both figures beating consensus estimates of 0.3% and 2.8% respectively [5] - Food prices increased by 2.6% year-over-year, while shelter costs, which make up one-third of the CPI, rose by 3%; however, shelter costs have eased recently, suggesting inflation may be on track to meet the Fed's 2% target [6] Consumer Discretionary Stocks - Four consumer discretionary stocks are recommended for purchase: Amer Sports, Inc. (AS), Cimpress plc (CMPR), Planet Fitness, Inc. (PLNT), and Airbnb, Inc. (ABNB) due to positive earnings estimate revisions and favorable market conditions [2][10] - Amer Sports, Inc. has an expected earnings growth rate of 97.9% for the current year, with a Zacks Consensus Estimate improvement of 10.7% over the last 60 days, currently holding a Zacks Rank 1 [8] - Cimpress plc is expected to see over 100% earnings growth this year, with an 8.3% improvement in the Zacks Consensus Estimate over the past 60 days, currently holding a Zacks Rank 2 [11] - Planet Fitness, Inc. has an expected earnings growth rate of 16.2% for the current year, with a 0.7% improvement in the Zacks Consensus Estimate over the last 60 days, currently holding a Zacks Rank 2 [12][13] - Airbnb, Inc. has an expected earnings growth rate of 1.2% for the current year, with a 0.2% improvement in the Zacks Consensus Estimate over the last 60 days, currently holding a Zacks Rank 2 [14]