EBF - Ennis: Assessing If A Technical Breakout Is On The Cards

2024-07-13 05:16:37 ET

Summary

• Ennis, Inc. stock has undergone a bullish move after bottoming out in April, currently testing overhead resistance.
• Q1 results showed a revenue decline and earnings per share drop, highlighting continued growth struggles.
• Despite growth challenges, Ennis has a strong balance sheet with no debt and generates strong cash flow, making it an interesting setup for value investors.

Intro

We wrote about Ennis , Inc. ( EBF ) in February of this year when we reiterated our 'Hold' rating in the print-related supplier. Concerning technicals, a sustained no-growth environment & a sub-par result (regarding valuation) from a popular dividend discount formula were the reasons at the time to stand pat on our Hold position....

For further details see: