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Cincinnati, Ohio-based Cintas Corporation (CTAS) provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. With a market cap of $89.4 billion, Cintas operates through Uniform Rental and Facility Services, First Aid and Safety Services, and Other segments.
Cintas has substantially outperformed the broader market over the past year. CTAS stock prices have soared 48.6% on a YTD basis and 61.4% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) surge of 25.5% in 2024 and 31.3% over the past year.
Narrowing the focus, CTAS has also outperformed the Industrial Select Sector SPDR Fund’s (XLI) 25.9% gains on a YTD basis and 35% returns over the past 52-week period.
CTAS stock prices rose 1.2% after the release of its impressive Q1 earnings on Sept. 25. The company has continued to deliver strong topline and earnings growth, margin expansion and strong cash generation. Cintas reported a robust 6.8% year-over-year growth in total revenues, reaching $2.5 billion, exceeding analysts’ topline expectations. Moreover, the company’s operational effectiveness and customer engagement drove 8% growth in its organic revenues. Meanwhile, its EPS surged 18.3% year-over-year to $1.10, surpassing analysts’ projections by a notable 10%.
Observing the solid performance during the quarter and continued momentum, Cintas increased its full-year revenues guidance to $10.2 billion - $10.3 billion and full-year EPS guidance range to $4.17 - $4.25, bolstering investor confidence.
For the current fiscal year, ending in May 2025, analysts expect CTAS to report an 11.6% year-over-year growth in EPS to $4.23. Moreover, the company has a robust earnings surprise history. It surpassed analysts’ earnings estimates in each of the past four quarters.
CTAS stock has a consensus “Moderate Buy” rating overall. Out of the 18 analysts covering the stock, seven recommend “Strong Buy,” nine advise “Hold,” and two suggest a “Strong Sell” rating.
This configuration is slightly less bullish than three months ago when eight analysts recommended “Strong Buy” ratings.
On Sept. 26, Jefferies analyst Stephanie Moore maintained a “Hold” rating on CTAS, with a price target of $200.
As of writing, CTAS is trading above its mean price target of $205.91. The Street-high target of $245 represents a just 9.4% premium to current price levels.
