Cintas Corporation (CTAS - Free Report) currently seems to be a smart choice for investors seeking exposure in the uniform related space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
The Cincinnati, OH-based company currently carries a Zacks Rank #2 (Buy). It belongs to the Zacks Uniform and Related industry, which belongs to the broader Zacks Industrial Products sector.
The industry is currently placed in the top 4% (with Zacks Industry Rank #11) of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1.
Below we discussed why investing in Cintas will be a smart choice.
Share Price Performance, Earnings Projections: Market sentiments seem to be working in favor of the company over time. Over the past six months, the company’s shares have yielded 31.9% return compared with 31.5% growth recorded by the industry and 7.2% decline by the sector.
We believe that impressive financial results helped in driving sentiments for the stock. The company beat earnings estimates in the last four quarters, the average surprise being 6.27%. Notably, earnings surprise was 6.7% in the last reported quarter.
For fiscal 2020 (ending May 2020), the company anticipates earnings per share of $8.30-$8.45, whereas it reported $7.60 in fiscal 2019 (ended May 2019).
Further, its earnings estimates have been raised in the past 60 days. The Zacks Consensus Estimate for the company’s earnings is pegged at $8.45 for fiscal 2020 and $9.41 for fiscal 2021 (ending May 2021), reflecting 1.8% and 2.4% growth from the respective 60-day-ago figures.
Cintas Corporation Price and Consensus