Is Cintas Stock Outperforming the Nasdaq?
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Cincinnati, Ohio-based Cintas Corporation (CTAS) engages in the provision of corporate identity uniforms and related business services. Valued at a market cap of $91.9 billion, the company operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks", and Cintas fits this description perfectly. The company offers services ranging from uniform rental and facility services to first aid and safety, helping businesses maintain cleanliness, safety, and professionalism. It serves over a million customers across a variety of industries, including healthcare, hospitality, and manufacturing.
Cintas currently trades marginally below its all-time high of $228.66 recorded in yesterday's trading session. CTAS's stock has gained 11.2% over the past three months, surpassing the Nasdaq Composite’s ($NASX) 6.4% uptick during the same time frame.
In the long term, Cintas stock has surged nearly 24.5% on a YTD basis, whereas the Nasdaq has increased marginally. Additionally, shares of CTAS soared 33.3% over the past 52 weeks, notably outperforming NASX’s 15.4% returns over the same period.
Cintas' stock has been trading above its 50-day and 200-day moving averages since mid-April, underscoring its bullish trend.
Cintas' stock prices surged 5.8% after the release of its impressive Q3 results on Mar. 26. Driven by solid organic growth across its segments and contribution from acquisitions, the company’s overall topline increased 8.4% year-over-year to $2.6 billion, surpassing the Street’s expectations. Meanwhile, the company showcased impressive expense discipline, leading to a notable improvement in margins. Cintas’ net income for the quarter increased 16.6% year-over-year to $463.5 million, and its EPS of $1.13 surpassed the consensus estimates by 7.6%, boosting investor confidence.
Compared to its rival, Copart, Inc. (CPRT) has lagged behind the CTAS stock. CPRT stock has fallen 12.2% on a YTD basis and collapsed 4.9% over the past 52 weeks.
Despite the stock’s outperformance, analysts are cautious on Cintas' prospects. The stock has a consensus rating of “Hold” from the 19 analysts covering it. As of writing, CTAS is trading above its mean price target of $213.75.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
