In the latest trading session, Cintas (CTAS) closed at $250.87, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.32%.
Heading into today, shares of the uniform rental company had lost 6.7% over the past month, lagging the Industrial Products sector's gain of 4.89% and the S&P 500's gain of 3.42% 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, 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CTAS is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, CTAS is holding a Forward P/E ratio of 29.6. For comparison, its industry has an average Forward P/E of 25.68, which means CTAS is trading at a premium to the group.
Investors should also note that CTAS has a PEG ratio of 2.85 right now. 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 2.08 as of yesterday's close.
The Uniform and Related industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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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