Cintas (CTAS) closed at $443.86 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's daily gain of 0.92%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 1.08%.
Heading into today, shares of the uniform rental company had gained 13.16% over the past month, lagging the Industrial Products sector's gain of 18.05% and outpacing the S&P 500's gain of 9.6% in that time.
Wall Street will be looking for positivity from Cintas as it approaches its next earnings report date. In that report, analysts expect Cintas to post earnings of $3.02 per share. This would mark year-over-year growth of 9.42%. Meanwhile, our latest consensus estimate is calling for revenue of $2.13 billion, up 10.57% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.49 per share and revenue of $8.62 billion, which would represent changes of +10.73% and +9.78%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cintas. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.13% lower. Cintas is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Cintas is holding a Forward P/E ratio of 35.59. For comparison, its industry has an average Forward P/E of 31.16, which means Cintas is trading at a premium to the group.
We can also see that CTAS currently has a PEG ratio of 3.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Uniform and Related industry currently had an average PEG ratio of 3.41 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 239, which puts it in the bottom 6% 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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