Cintas Corporation’s Stock Performance: Insights and Expert Ratings

With a market cap of $83.1 billion, Cintas Corporation (CTAS) stands as a prominent provider of business services. It assists over one million companies in enhancing their image while ensuring clean and safe workplaces. Cintas offers a range of services including uniform rental, facility services, first aid and safety products, and fire protection, helping businesses be ready for each workday.

Over the past 52 weeks, Cintas’ shares have outpaced the broader market. Specifically, CTAS has returned 28.9% during this period, compared to a 17.5% increase in the S&P 500 Index ($SPX). On a year-to-date basis, CTAS shares have risen by 11.8%, significantly higher than the SPX’s modest 1.3% gain.

Sector Performance and Concerns

Analyzing the performance further, the Cincinnati, Ohio-based company also surpasses the Industrial Select Sector SPDR Fund’s (XLI) reported 12.5% return over the last year. However, on December 19, following a better-than-expected Q2 profit of $1.09 per share, Cintas shares dropped over 10%. This decline was attributed to investor concerns surrounding direct uniform sales and pricing.

Instability in direct sales to large clients, including airlines and hotels, raised uncertainty among investors. Compounding this, pricing increases are becoming more challenging due to declining inflation, suggesting potential margin pressures for the company. These issues overshadowed Cintas’ optimistic full-year earnings per share (EPS) outlook, projected at $4.28 to $4.34, along with a favorable revenue forecast.

Future Earnings Expectations

For the fiscal year ending in May 2025, analysts anticipate that CTAS’ EPS will grow by 13.7% year-over-year to reach $4.31. The company’s historical earnings reports also show promise, having exceeded consensus estimates for the last four quarters.

Among the 18 analysts following the stock, the consensus rating is categorized as a “Hold.” This opinion is based on a breakdown of six “Strong Buy” ratings, nine “Holds,” one “Moderate Sell,” and two “Strong Sells.”

Analyst Ratings and Price Targets

This collection of ratings appears less optimistic than three months prior, when there were seven “Strong Buy” ratings for the stock. Recently, on February 20, Barclays analyst Manav Patnaik reiterated a “Buy” rating on Cintas, establishing a price target of $245.

Currently, CTAS is trading above the average price target of $199.47. Notably, the Street-high target of $245 suggests a potential upside of 19.9% from the present price levels.

On the date of publication, Sohini Mondal 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 details, please review the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.