Here’s why 4imprint share price soared to an all-time high

The 4imprint (LON: FOUR) share price surged to an all-time high as investors cheered the company’s strong earnings. The stock rose to a high of 3,955p, which was about 75% above the lowest level since June this year. This jump brought the company’s market cap of more than £1 billion.

4imprint strong results

4imprint Group is a leading company that sells promotional products with operations in North America, the UK, and Ireland. The company sells products like apparel, bags, drinkware, writing, and outdoor & leisure among others. 

The 4imprint share price soared to an all-time high as investors focused on the strong results. The firm said that its revenue rose by 58% to $515 million. Its operating profit by 1,122% to over $43.98 million while its EPS jumped by 1,204% while its total marketing spend rose by just 5% to $62.9 million.

In a statement, the company said that it was confident about its business even as risks continued rising. The firm expects that it will hit its long target of $1 billion in revenue this year. However, it warned that the rising inflation could drag the firm’s financial performance in the remaining part of the year.

4imprint expects that it will pay its interim dividend of $11.2 million in September. It expects to have capital expenditures of $9 million this year.

So, is 4imprint a good stock to buy in 2022? The company has done well in the past few months and established a significant market share in its key segments. Therefore, this business will likely continue doing well in the coming months.

However, the biggest risk is that companies will start slowing down their capital expenditure in the coming months to preserve cash. 

4imprint share price forecast

4imprint stock price jumped sharply on Wednesday after the company published strong first-half results. This made it the best-performing stock in the FTSE 250 index. It crossed the important resistance level at 3,280p, which was the highest point on September 23rd, 2021. 

4imprint shares rose above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. Therefore, the path of the least resistance for the FOUR share price is bullish, with the next key resistance being at 4,000p.

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