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Cintas (CTAS) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Cintas (CTAS - Free Report) closed at $262, marking a -1.11% move from the previous day. This change lagged the S&P 500's 0.27% gain on the day. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the uniform rental company had gained 0.52% in the past month. In that same time, the Industrial Products sector gained 10.33%, while the S&P 500 gained 4.34%.

Wall Street will be looking for positivity from CTAS as it approaches its next earnings report date. In that report, analysts expect CTAS to post earnings of $2.03 per share. This would mark year-over-year growth of 15.34%. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 6.04% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.57 per share and revenue of $7.32 billion, which would represent changes of +12.76% and +6.14%, respectively, from the prior year.

Any recent changes to analyst estimates for CTAS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CTAS currently has a Zacks Rank of #2 (Buy).

In terms of valuation, CTAS is currently trading at a Forward P/E ratio of 30.92. This valuation marks a premium compared to its industry's average Forward P/E of 26.05.

We can also see that CTAS currently has a PEG ratio of 2.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CTAS's industry had an average PEG ratio of 2.29 as of yesterday's close.

The Uniform and Related industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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