Cintas (CTAS) closed the most recent trading day at $270.34, moving -0.73% from the previous trading session. This change lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.7%.
Prior to today's trading, shares of the uniform rental company had gained 1.61% over the past month. This has lagged the Industrial Products sector's gain of 4.12% and the S&P 500's gain of 2.04% in that time.
CTAS will be looking to display strength as it nears its next earnings release. 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.
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.
Investors might also notice recent changes to analyst estimates for CTAS. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.02% higher. CTAS currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, CTAS is holding a Forward P/E ratio of 31.78. This valuation marks a premium compared to its industry's average Forward P/E of 24.62.
We can also see that CTAS currently has a PEG ratio of 3.06. 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. The Uniform and Related industry currently had an average PEG ratio of 2.23 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 30, putting it in the top 12% 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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