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Cintas Corporation (CTAS - Free Report) recently completed the acquisition of SITEX, a family-owned supplier of uniform and facility service solutions. Financial terms of the acquisition were kept under wraps.
Cintas’ shares remained relatively stable yesterday, closing the trading session at $614.64.
Based in Henderson, KY, SITEX operates as a well-known apparel and facility services program provider in a four-state region comprising Illinois, Indiana, Tennessee and Kentucky. SITEX boasts a strong portfolio of products and services including uniform and apparel, chef apparel, linens, aprons, mats, restroom and hygiene services, facilities services, custom apparel and promotional products.
Acquisition Rationale
The latest buyout is in sync with Cintas’ policy of acquiring businesses to strengthen its business and product portfolio. The inclusion of SITEX’s solid portfolio of apparel and other products, supported by its strong customer service capabilities, will enable Cintas to expand its offerings. The transaction is expected to strengthen the leading market position of Cintas in the central Midwest region of the United States.
Zacks Rank & Price Performance
Cintas, with a $62.3 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company’s Uniform Rental and Facility Services business is benefiting from robust demand from the health care, education and government sectors. Higher customer retention levels are driving growth of the First Aid and Safety Services segment. CTAS’ focus on enhancement of its product portfolio holds promise.
Image Source: Zacks Investment Research
The company’s shares have gained 26.5% compared with the industry’s growth of 24.9% in the past six months.
The Zacks Consensus Estimate for CTAS’ fiscal 2024 earnings has improved 0.3% over the last 60 days. It has a trailing four-quarter average earnings surprise of 3.5%.
AIT delivered a trailing four-quarter average earnings surprise of 10.4%. In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s 2024 earnings has increased 0.7%.
PH delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has increased 2.7%.
TTEK delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for Tetra Tech’s 2024 earnings has increased 2.9%.
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Cintas (CTAS) Completes SITEX Buyout, Boosts Product Portfolio
Cintas Corporation (CTAS - Free Report) recently completed the acquisition of SITEX, a family-owned supplier of uniform and facility service solutions. Financial terms of the acquisition were kept under wraps.
Cintas’ shares remained relatively stable yesterday, closing the trading session at $614.64.
Based in Henderson, KY, SITEX operates as a well-known apparel and facility services program provider in a four-state region comprising Illinois, Indiana, Tennessee and Kentucky. SITEX boasts a strong portfolio of products and services including uniform and apparel, chef apparel, linens, aprons, mats, restroom and hygiene services, facilities services, custom apparel and promotional products.
Acquisition Rationale
The latest buyout is in sync with Cintas’ policy of acquiring businesses to strengthen its business and product portfolio. The inclusion of SITEX’s solid portfolio of apparel and other products, supported by its strong customer service capabilities, will enable Cintas to expand its offerings. The transaction is expected to strengthen the leading market position of Cintas in the central Midwest region of the United States.
Zacks Rank & Price Performance
Cintas, with a $62.3 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company’s Uniform Rental and Facility Services business is benefiting from robust demand from the health care, education and government sectors. Higher customer retention levels are driving growth of the First Aid and Safety Services segment. CTAS’ focus on enhancement of its product portfolio holds promise.
Image Source: Zacks Investment Research
The company’s shares have gained 26.5% compared with the industry’s growth of 24.9% in the past six months.
The Zacks Consensus Estimate for CTAS’ fiscal 2024 earnings has improved 0.3% over the last 60 days. It has a trailing four-quarter average earnings surprise of 3.5%.
Other Promising Stocks
We have highlighted three other top-ranked stocks from the Industrial Products sector, namely Applied Industrial Technologies (AIT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Tetra Tech Inc. (TTEK - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT delivered a trailing four-quarter average earnings surprise of 10.4%. In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s 2024 earnings has increased 0.7%.
PH delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has increased 2.7%.
TTEK delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for Tetra Tech’s 2024 earnings has increased 2.9%.