Cintas (CTAS - Free Report) closed at $257.90 in the latest trading session, marking a +0.69% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.24%.
Heading into today, shares of the uniform rental company had lost 5.13% over the past month, lagging the Industrial Products sector's gain of 6.05% and the S&P 500's gain of 4.72% in that time.
Wall Street will be looking for positivity from CTAS as it approaches its next earnings report date. The company is expected to report EPS of $2.03, up 15.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 6.04% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.57 per share and revenue of $7.32 billion. These totals would mark changes of +12.76% and +6.14%, respectively, from last 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CTAS currently has a Zacks Rank of #2 (Buy).
Investors should also note CTAS's current valuation metrics, including its Forward P/E ratio of 29.89. For comparison, its industry has an average Forward P/E of 25.82, which means CTAS is trading at a premium to the group.
We can also see that CTAS currently has a PEG ratio of 2.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Uniform and Related stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Uniform and Related industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.
To follow CTAS in the coming trading sessions, be sure to utilize Zacks.com.