Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Cimpress

(

CMPR

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cimpress as such a stock due to the following factors:

  • CMPR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.5 million.
  • CMPR has traded 281,054 shares today.
  • CMPR traded in a range 305.9% of the normal price range with a price range of $6.52.
  • CMPR traded below its daily resistance level (quality: 182 days, meaning that the stock is crossing a resistance level set by the last 182 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on CMPR:

Vistaprint N.V. operates as an online supplier of coordinated portfolios of marketing products and services to micro businesses worldwide. CMPR has a PE ratio of 27. Currently there is 1 analyst that rates Cimpress a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Cimpress has been 278,400 shares per day over the past 30 days. Cimpress has a market cap of $2.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.20 and a short float of 15.6% with 6.64 days to cover. Shares are up 5.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cimpress as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 18.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 525.00% and other important driving factors, this stock has surged by 108.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • CIMPRESS NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CIMPRESS NV increased its bottom line by earning $1.26 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($4.09 versus $1.26).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 526.3% when compared to the same quarter one year prior, rising from $1.38 million to $8.61 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, CIMPRESS NV's return on equity significantly exceeds that of both the industry average and the S&P 500.

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