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Here's Why Investors Should Invest in Cintas (CTAS) Stock Now
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Cintas Corporation (CTAS - Free Report) is benefiting from strength in its businesses, product portfolio, focus on operational execution and sound capital-deployment strategy.
Let’s delve into the factors that make the stock a smart investment choice at the moment.
Increased volumes and higher prices are aiding CTAS’ Uniform Rental and Facility Services segment. Strength across the first aid cabinet service business is driving the First Aid and Safety Services segment’s performance. In the first quarter of fiscal 2023 (ended August 2022), revenues rose 12.6% and 17.6% year over year for the Uniform Rental and Facility Services and First Aid and Safety Services segments, respectively.
Following Cintas’ strong first-quarter fiscal 2023 performance, it raised the revenue expectation to $8.58-$8.67 billion in fiscal 2023 from $8.47-$8.58 billion anticipated earlier. Also, earnings are estimated in the range of $12.30-$12.65 per share compared with $11.90-$12.30 expected earlier.
The company’s focus on enhancing its product portfolio and investing in technology and existing facilities should continue to drive growth. Also, its focus on operational execution, cost-control measures and pricing actions are supporting its margin performance. In first-quarter fiscal 2023, the operating margin (adjusted) increased 20 basis points to 20.3%.
Cintas’ measures to reward its shareholders through dividends and share buybacks are impressive. In first-quarter fiscal 2023, CTAS repurchased shares worth $210.8 million and paid dividends of $97.66 million. It hiked its quarterly dividend by 21.1% to $1.15 per share in July 2022. CTAS has consistently raised its dividend for 39 straight years.
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ended August 2023) in the past 60 days. Its shares have gained 12.1% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2. IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
In the past 60 days, iRobot’s earnings estimates have increased 0.1% for 2022. The stock has rallied 33.8% in the past three months.
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Here's Why Investors Should Invest in Cintas (CTAS) Stock Now
Cintas Corporation (CTAS - Free Report) is benefiting from strength in its businesses, product portfolio, focus on operational execution and sound capital-deployment strategy.
Let’s delve into the factors that make the stock a smart investment choice at the moment.
Increased volumes and higher prices are aiding CTAS’ Uniform Rental and Facility Services segment. Strength across the first aid cabinet service business is driving the First Aid and Safety Services segment’s performance. In the first quarter of fiscal 2023 (ended August 2022), revenues rose 12.6% and 17.6% year over year for the Uniform Rental and Facility Services and First Aid and Safety Services segments, respectively.
Following Cintas’ strong first-quarter fiscal 2023 performance, it raised the revenue expectation to $8.58-$8.67 billion in fiscal 2023 from $8.47-$8.58 billion anticipated earlier. Also, earnings are estimated in the range of $12.30-$12.65 per share compared with $11.90-$12.30 expected earlier.
The company’s focus on enhancing its product portfolio and investing in technology and existing facilities should continue to drive growth. Also, its focus on operational execution, cost-control measures and pricing actions are supporting its margin performance. In first-quarter fiscal 2023, the operating margin (adjusted) increased 20 basis points to 20.3%.
Cintas’ measures to reward its shareholders through dividends and share buybacks are impressive. In first-quarter fiscal 2023, CTAS repurchased shares worth $210.8 million and paid dividends of $97.66 million. It hiked its quarterly dividend by 21.1% to $1.15 per share in July 2022. CTAS has consistently raised its dividend for 39 straight years.
Cintas Corporation Price and Consensus
Cintas Corporation price-consensus-chart | Cintas Corporation Quote
In the past 60 days, the Zacks Consensus Estimate for fiscal 2023 (ending May 2023) earnings has moved 2.9% north.
Zacks Rank and Other Stocks to Consider
Cintas carries a Zacks Rank #2 (Buy). Some other top-ranked companies are discussed below:
Enerpac Tool Group Corp. (EPAC - Free Report) delivered a four-quarter earnings surprise of 3.4%, on average. EPAC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ended August 2023) in the past 60 days. Its shares have gained 12.1% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2. IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
In the past 60 days, iRobot’s earnings estimates have increased 0.1% for 2022. The stock has rallied 33.8% in the past three months.