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Cincinnati, Ohio-based Cintas Corporation (CTAS) provides corporate identity uniforms and related business services. Valued at a market cap of $82.9 billion, the company operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks", and Cintas fits this description perfectly.
Cintas currently trades 9.8% below its 52-week high of $229.24 recorded on June 6. CTAS's stock has declined 9% over the past three months, trailing the broader Dow Jones Industrial Average’s ($DOWI) 7.5% rise during the same time frame.
In the long term, Cintas stock has surged 13.3% on a YTD basis, whereas the Dow Jones has increased 7.2%. Additionally, shares of CTAS soared 2.8% over the past 52 weeks, underperforming $DOWI’s 11.3% returns over the same period.
Cintas' stock has been trading below its 50-day and 200-day moving averages since mid-August and the end of August, respectively, underscoring its bearish trend.
On Jul. 17, Cintas released better-than-expected Q4 results, and its shares surged 3.7% in the following trading session. The company’s topline grew 8% year-over-year to $2.7 billion, exceeding the consensus estimates by 1.6%. Its EPS soared 9% year-over-year to $1.09, surpassing the Street expectations.
Its key rival, Copart, Inc. (CPRT), has lagged behind CTAS stock. CPRT stock has fallen 12.9% on a YTD basis and collapsed 5.8% over the past 52 weeks.
Despite the stock’s outperformance, analysts are cautious on Cintas' prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering it. Its mean price target of $224.31 indicates a premium of 8.4% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
