Big Tech led the stock market recovery this year — until recently that is. In a welcome move, market leadership has broadened to include various other sectors, including commercial services. That's in corporate uniforms provider Cintas' wheelhouse. On Thursday the IBD Relative Strength Rating for Cintas stock climbed to an 81 score, passing a milestone along the way.
The raised 81 RS score means Cincinnati-based Cintas stock outperformed 81% of all other stocks over the past year. Research shows that the best stocks tend to have an 80 or better RS Rating in the early stages of their moves.
Cintas Stock Ready For Market Rebound?
Top-ranked Cintas stock is outperforming the market. Unfortunately, the overall market has been weak this month, not unusual for August, often one of the worst for stocks. Still, Cintas is well positioned as a leading provider of uniforms for hospitals, hotels and other industries. It also provides safety gear, restroom products, training services and more.
Additionally, Cintas stock boasts a near-perfect 95 Earnings Per Share Rating out of 99. Its Composite Rating is also a top-notch 95, putting it in the top 5% of all stocks overall. Another outstanding rating is its A SMR Rating (sales + profit margin + return on equity) on an A-to-E scale. The A rating reflects strong fundamentals.
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Cintas stock is not currently offering a proper buying opportunity. Amid market weakness it's drifted slightly below its 50-day average. However, it's not far below its all-time high at 518.71, set on July 26. Thursday afternoon Cintas traded around 483. See if the stock goes on to form a chart pattern that could launch a new move when the market returns to a strong growth pattern.
A Tale Of Two Metrics
On July 12 the company said earnings growth picked up last quarter from 17% the prior quarter to 19%, or $3.33 per share. That was its strongest quarterly growth of the past year. Conversely, revenue grew 10% to $2.28 billion, its weakest sales growth over that period.
Cintas stock earns the No. 1 rank among its peers in the 25-company Commercial Services-Outsourcing industry group. Health care savings plan manager HealthEquity is No. 2 in the group, and payroll and other business services outsourcing company ADP is No. 3.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks compares to all the other stocks in our database.
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