Tech giants generally hog the stock spotlight, so it may come as a surprise to learn that a company that provides uniforms to hotels and hospitals for their workers is among the best stocks to buy and watch. Additionally, top-ranked Cintas stock on Wednesday got a major Relative Strength (RS) Rating upgrade, from 79 to 84.
Market research shows that the best stocks typically have an 80 or better RS Rating in the early stages of their moves. The rating upgrade for Cintas stock pushed it into that elite group.
Cintas Stock Ratings Shine
Among its other ratings Cincinnati-based Cintas boasts a 95 Earnings Per Share Rating, out of 99, reflecting strong recent and long-term profit growth. Cintas stock also has an A- Accumulation/Distribution Rating, on an A+ to E scale. The A/D Rating is a gauge of buying by institutional investors like insurance funds and ETFs over the past 13 weeks. A- shows heavy buying by the heavy hitters.
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Its Composite Rating is near-perfect at 97 out of 99. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Cintas stock fell to a 154.33 low at the end of March 2020 during the Covid market crash. It improved to 370.93 in the middle of last October as the 2022 bear market was winding down. On Wednesday, Cintas rose less than 1% to 514.79. It is trying to complete a flat base and fast closing on a 518.71 buy point. See if it can clear the breakout price in heavy volume.
Profit Grew Over Past 4 Quarters
Earnings growth rose steadily over the past four quarters. It lifted from 12% to 13%, 17% and last quarter the company reported 19% growth to $3.33 per share. That came on 10% revenue growth to $2.285 billion. Keep an eye out for the company's next round of numbers on or around Sept. 26.
Cintas stock earns the No. 1 rank among its peers in the Commercial Services-Outsourcing industry group. Health savings plan operator HealthEquity and payroll processing expert ADP are also among the top 5 in the Commercial Services-Outsourcing group.
IBD's unique Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the last 52 weeks matches up against that of all other stocks.
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