Cintas (CTAS) closed the most recent trading day at $255.24, moving -1.39% from the previous trading session. This change lagged the S&P 500's 0.07% gain on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the uniform rental company had lost 3.93% over the past month. This has lagged the Industrial Products sector's gain of 8.53% and the S&P 500's gain of 4.3% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.82 billion, up 6.04% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for CTAS. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CTAS is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that CTAS has a Forward P/E ratio of 30.21 right now. Its industry sports an average Forward P/E of 26, so we one might conclude that CTAS is trading at a premium comparatively.
It is also worth noting that CTAS currently has a PEG ratio of 2.91. 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 2.2 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 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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