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With a market cap of $83.1 billion, Cintas Corporation (CTAS) is a leading provider of business services, helping over one million companies enhance its image and maintain clean, safe workplaces. With offerings such as uniform rental, facility services, first aid and safety products, and fire protection, Cintas ensures businesses are always prepared for the workday.
Shares of the professional uniform company have outperformed the broader market over the past 52 weeks. CTAS has returned 28.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 17.5%. Moreover, shares of CTAS are up 11.8% on a YTD basis, compared to SPX’s 1.3% gain.
Focusing more closely, the Cincinnati, Ohio-based company has outpaced the Industrial Select Sector SPDR Fund’s (XLI) 12.5% return over the past 52 weeks.
Despite reporting a better-than-expected Q2 profit of $1.09 per share, Cintas shares plunged over 10% on Dec. 19 due to concerns over direct uniform sales and pricing. Direct sales to large clients like airlines and hotels were described as volatile, raising investor uncertainty. Pricing increases were also noted as becoming more difficult with declining inflation, suggesting potential margin pressure. These concerns overshadowed Cintas’ improved full-year EPS outlook of $4.28 - $4.34 and revenue forecast.
For the fiscal year ending in May 2025, analysts expect CTAS’ EPS to grow 13.7% year-over-year to $4.31. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Hold.” That’s based on six “Strong Buy” ratings, nine “Holds,” one “Moderate Sell,” and two “Strong Sells.”
This configuration is less bullish than three months ago, with seven “Strong Buy” ratings on the stock.
On Feb. 20, Barclays analyst Manav Patnaik reaffirmed a “Buy” rating on Cintas and set a price target of $245.
As of writing, CTAS is trading above the mean price target of $199.47. The Street-high price target of $245 implies a potential upside of 19.9% from the current price levels.
