VistaPrint Limited (VPRT) has been named inFortune magazine’s global list of the “100 Fastest-Growing Companies.” The ranking was published in the August 31 issue of Fortune and is based on three years of revenue and profit growth, in addition to a total shareholder return. VistaPrint ranked 16th overall on this year’s list.

Although VistaPrint has only had a short history as a publicly traded company, it has been delivering strong operating results since its inception. Revenues have grown significantly, and margins have held up relatively well along the way. All of the company’s growth has been organic; as a result, the balance sheet remains strong.

VistaPrint Limited is the leading online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. The company has a number of advantages over traditional graphic design and print companies in price, convenience, quality and variety.

VistaPrint’s primary targeted market of small businesses with fewer than 10 employees is substantial, providing the company with significant growth potential. Since its launch in May 2000, the company has served more than 14 million customers in more than 120 countries.

VistaPrint’s fourth quarter (ended June 30, 2009) results came in better than both guidance and the Zacks Consensus Estimate. The fact that the company again posted such an impressive quarter in the midst of extremely challenging economic conditions augurs well for its potential to weather the recession, in our opinion.

Some of the same products and services provided by VistaPrint are also offered at office supply and photocopy retail companies such as Office Depot (ODP), Office Max (OMX) and Staples (SPLS). However, we note that these companies are not expected to generate earnings growth anywhere near that of VisaPrint, and their margins are significantly lower as well. As such, we recommend the shares of VistaPrint as Outperform.
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