Cenveo, Inc (CVO) recently beat Wall Street’s expectations, sending shares to a new 52-week high. Thanks to upward estimate revisions, shares are still a good value.

Company Description

Cenveo, Inc. manages and distributes print and other products for its customers. The company offers levels, forms, packaging, envelopes, and other related products and services.

Beat the Street

On Mar 3 Cenveo reported earnings per shares of 20 cents for the fourth quarter of 2009. The Zacks Consensus Estimate was just 12 cents heading into the announcement.

Cenveo has beaten expectations in 5 of the past 6 quarters. Additionally, the company was able to trim almost $50 million in debt off of their balance sheet thanks to strong cash flows.

Rising Estimates

The Zacks #1 Rank stock continues to receive upward estimate revisions. The consensus estimate for full-year 2010 is up 6 cents to 59 cents.

Estimates for 2011 are averaging 85 cents, up a nickel. These levels represent growth rates of 179% and 45%, respectively.


Cenveo acquired Clixx Direct Marketing Services on Feb 11, but the specifics were not disclosed. The company expects synergy and excellent cross-selling opportunities through the deal. This is just one of several acquisitions made in the past 12 months.

The Chart

The stock hit new highs on the earnings release, but that came with upward estimate revisions as well, keeping the valuations in line. Shares are going for about 15 times forward earnings.

Cenveo, Inc - ticker CVO > <P ALIGN=

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service Zacks Investment Research