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Here's Why You Should Hold on to Cintas (CTAS) Stock Now
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Cintas Corporation (CTAS - Free Report) is gaining from strong segmental performance and investments in technology and existing facilities despite adversities from increasing costs and foreign exchange headwinds.
What’s Aiding CTAS?
Cintas’ Uniform Rental and Facility Services segment is benefiting from the increased productivity level and new product launches. Robust health and wellness businesses and high customer retention levels are boosting the First Aid and Safety Services segment’s performance. Robust demand for products and services is driving the growth of the All-Other business.
Cintas' focus on the enhancement of its product portfolio, along with investments in technology and existing facilities, should continue to drive its performance. Also, the company’s focus on operational execution, cost-control measures and pricing actions is helping it maintain healthy margin performance. For instance, in fiscal 2023 (ended May 2023), the gross margin increased 110 basis points to 47.3%.
The company’s efforts to reward its shareholders through share repurchases are noteworthy. In fiscal 2023, the company repurchased shares worth $398.87 million and paid dividends of $449.92 million. Owing to strong performance in fiscal 2023, the company hiked its quarterly dividend by 17.4% to $1.35 per share in July 2023. Cintas has consistently raised its dividend for 40 straight years.
In light of the above-mentioned positives, we believe, investors should retain CTAS stock for now, as suggested by its current Zacks Rank #3 (Hold). Shares of the company have gained 10.9% in the past year, outperforming the industry’s 9.3% increase.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
CAT’s earnings surprise in the last four quarters was 18.5%, on average. In the past 60 days, estimates for Caterpillar’s earnings have increased 9.5% for 2023. The stock has gained 40.6% in the past year.
A. O. Smith Corp. (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS’ earnings surprise in the last four quarters was 10.5%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 2.9% for 2023. The stock has gained 11.4% in the past year.
Alamo Group Inc. (ALG - Free Report) presently carries a Zacks Rank of 2.ALG’s earnings surprise in the last four quarters was 13%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 1.1%. The stock has gained 24% in the past year.
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Here's Why You Should Hold on to Cintas (CTAS) Stock Now
Cintas Corporation (CTAS - Free Report) is gaining from strong segmental performance and investments in technology and existing facilities despite adversities from increasing costs and foreign exchange headwinds.
What’s Aiding CTAS?
Cintas’ Uniform Rental and Facility Services segment is benefiting from the increased productivity level and new product launches. Robust health and wellness businesses and high customer retention levels are boosting the First Aid and Safety Services segment’s performance. Robust demand for products and services is driving the growth of the All-Other business.
Cintas' focus on the enhancement of its product portfolio, along with investments in technology and existing facilities, should continue to drive its performance. Also, the company’s focus on operational execution, cost-control measures and pricing actions is helping it maintain healthy margin performance. For instance, in fiscal 2023 (ended May 2023), the gross margin increased 110 basis points to 47.3%.
The company’s efforts to reward its shareholders through share repurchases are noteworthy. In fiscal 2023, the company repurchased shares worth $398.87 million and paid dividends of $449.92 million. Owing to strong performance in fiscal 2023, the company hiked its quarterly dividend by 17.4% to $1.35 per share in July 2023. Cintas has consistently raised its dividend for 40 straight years.
In light of the above-mentioned positives, we believe, investors should retain CTAS stock for now, as suggested by its current Zacks Rank #3 (Hold). Shares of the company have gained 10.9% in the past year, outperforming the industry’s 9.3% increase.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Caterpillar Inc. (CAT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
CAT’s earnings surprise in the last four quarters was 18.5%, on average. In the past 60 days, estimates for Caterpillar’s earnings have increased 9.5% for 2023. The stock has gained 40.6% in the past year.
A. O. Smith Corp. (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS’ earnings surprise in the last four quarters was 10.5%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 2.9% for 2023. The stock has gained 11.4% in the past year.
Alamo Group Inc. (ALG - Free Report) presently carries a Zacks Rank of 2.ALG’s earnings surprise in the last four quarters was 13%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 1.1%. The stock has gained 24% in the past year.