Printing Stock Opportunities: Why These Three Commercial Printing Stocks Deserve Your Attention

The commercial printing sector is experiencing a pivotal moment. While traditional printing faces headwinds from digital media adoption, three well-positioned printing stocks are capturing solid growth opportunities within an industry that Zacks ranks #102 among over 250 sectors—placing it in the top 40% for near-term prospects.

The Three Printing Stocks Leading the Charge

Kornit Digital Ltd. (KRNT) stands out with its innovative digital printing solutions for textile manufacturers. Despite a challenging 37.1% decline over the past year, the company demonstrates resilience through consistent product innovation and operational discipline. Trading with a forward 12-month P/E of approximately 31.4 (higher than the S&P 500’s 17.3), KRNT’s valuation reflects market expectations for growth. Recent earnings have shown mixed results—beating estimates once, meeting once, and missing twice in the last four quarters—with 2022 earnings estimates steady at $1.05.

Issuer Direct Corporation (ISDR), based in Raleigh, represents another compelling printing-adjacent opportunity in shareholder communications technology. The company’s 26.9% year-over-year decline masks solid fundamentals: strong liquidity, investor-friendly policies, and growing demand for compliance solutions. ISDR has demonstrated stronger earnings consistency, beating estimates twice in the last four quarters (with an average surprise of 21.51%). Its 2022 earnings estimate remains stable at $1.09.

Research Solutions, Inc. (RSSS), headquartered in Henderson, Nevada, provides workflow solutions to research-intensive sectors. The stock has weathered market volatility better than its peers, declining only 12.9% annually. The company maintains operational execution focus and healthy cash positions. Recent quarterly results met analyst expectations, with fiscal 2022 earnings estimates (ending June 2022) holding steady.

What’s Driving the Commercial Printing Industry Forward

The commercial printing sector gains momentum from several structural tailwinds. Strengthening consumer sentiment, rising personal incomes, and wage growth are translating into increased business spending on promotional materials, packaging, labels, and document management services. Companies across retail, technology, financial services, and hospitality sectors continue outsourcing their printing needs to specialized providers, creating a resilient demand foundation.

Technological advancement represents another key enabler. Advanced digitization capabilities help commercial printing companies optimize operations, reduce delivery times, and lower costs through enhanced supply-chain visibility. These efficiencies translate directly into improved margins and competitive positioning—critical advantages in an industry where scale matters.

The Headwinds: Why Valuations Remain Elevated

Offsetting these positives, the industry faces structural challenges that explain why the commercial printing industry has underperformed both the S&P 500 (down 2% yearly) and the broader Zacks Industrial Products sector (down 19.8%) by 29% over the past year.

Online media’s rising dominance in advertising has cannibalized traditional print demand. Rising raw material costs, persistent supply-chain disruptions, and difficulty recruiting skilled labor continue pressuring margins. The industry’s forward P/E ratio of 31.4 sits well above the sector average (15.1), suggesting current valuations embed significant growth expectations that may face execution challenges.

Valuation Context and Risk Assessment

Historically, the commercial printing industry has traded in a wide range—from 6.73X to 133.36X forward P/E over the past five years, with a median of 36.77X. Current valuations at 31.4X sit near historical lows relative to peaks, though elevated compared to market and sector averages. This disconnect reflects investor uncertainty about whether technological advancement can offset structural headwinds from digital disruption.

The Zacks Rank of #3 (Hold) for all three printing stocks reflects this mixed thesis—not outright bullish, but acknowledging healthy near-term prospects for well-managed operators.

Final Takeaway

For investors seeking exposure to the commercial printing industry, these three stocks offer differentiated risk-reward profiles. Kornit Digital provides leverage to technological transformation in textile printing. Issuer Direct taps into the non-cyclical shareholder communications market. Research Solutions serves stable, research-intensive verticals with recurring revenue potential. While industry headwinds remain material, selective printing stock positions within this Zacks #102-ranked industry may reward patient investors who can tolerate volatility while the sector transitions.