Summary
- Cintas Corporation (CTAS) shows strong technical indicators with 100% buy signals, a Trend Seeker buy signal, and consistent price appreciation, gaining 2.26% since 9/9.
- The company operates in uniform rental, facility services, first aid, and safety services, with a significant market presence in the U.S., Canada, and Latin America.
- Fundamental factors include a market cap of $83.18 billion, a P/E ratio of 53.92, and expected revenue and earnings growth of over 7% and 10% respectively.
- Analyst sentiment is mixed with price targets ranging from $130 to $219, and ratings from strong buy to sell, highlighting valuation concerns.
The Chart of the Day belongs to the uniform and supply company Cintas (CTAS) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 9/9 the stock gained 2.26%.
Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. In addition, the company offers first aid and safety services, and fire protection products and services. It provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. The company was founded in 1968 and is based in Cincinnati, Ohio. Cintas Corporation was formerly a subsidiary of Cintas Corporation.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 62.76+ Weighted Alpha
- 1.32 - 60 month Beta
- 60.69% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 15 new highs and up 8.26% in the last month
- Relative Strength Index 69.77%
- Technical support level at $200.79
- Recently traded at $206.01 with 50 day moving average of $190.87
Fundamental Factors:
- Market Cap $83.18 billion
- P/E 53.92
- Dividend yield .68%
- Revenue expected to grow 7.10% this year and another 7.20% next year
- Earnings are estimated to increase 10.00% this year, an additional 10.50% next year and continue to compound at an annual rate of 12.85% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 5 strong buy, 3 buy, 10 hold and 3 sell opinions on the stock
- Analysts' price targets are between $130 and $219 with a consensus of $190
- Value Line give the stock its above average rating of 1 and comments: "As it stands, management has its sight set on increasing revenues 6%-7% and boosting share earnings to $16.25-$16.75, which would represent growth of 7%-11%."
- CFRAs MarketScope rates the stock a sell with a price target of $170 and comments: "We upgrade our view on CTAS shares to Sell from Strong Sell. Our revised opinion considers an uplift in demand assuming a “soft landing” and consistent rate cuts. Still, we believe CTAS’s leading market position is more than accounted for in its current share price as it’s trading well above the firm’s historical P/E averages and above the industry average."
- MorningStar rates the stock a below average 1 star rating with Fair Value at $130 and says it is 57% over valued yet comments:" Cintas’ industry-leading operating efficiency stems from its significant scale-based cost advantages, achieved through superior route density. There is still ample opportunity for expansion, as companies in the sizable unvended market look to outsource their uniform programs and facilities services. "
- 19,290 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten 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.
