Is Cintas Stock Outperforming the Dow?

Industrials (names A - I) - Cintas Corporation logo on building-by JHVEPhoto via iStock

Based in Cincinnati, Ohio, Cintas Corporation (CTAS) provides corporate identity uniforms and related business services primarily in the U.S., Canada, and Latin America. Valued at $72.14 billion by market cap, the company provides products and services to businesses, including uniforms, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems, and alarm service.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and CTAS perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. CTAS helps more than one million businesses of all types and sizes.

The leader in workplace essentials has fallen marginally from its 52-week high of $713.68, which it hit on Jun. 18. Shares of CTAS are up 13.8% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) marginal gains over the same time frame.

Longer term, CTAS shares have risen 44.7% over the past year, and in 2024, the stock is up 18%. By contrast, DOWI is up 3% on a YTD basis and 13.2% over the past 52 weeks.

The stock has been trading above its 50-day moving average since early June and its 200-day moving average since late October 2022, indicating a long-term bullish price trend.

On Mar. 27, CTAS closed up more than 8% after the company reported Q3 results. The company’s net income was $397.60 million, and its adjusted EPS was $3.84, surpassing Wall Street expectations of $3.47. Its revenue was $2.41 billion, topping the consensus estimate of $2.38 billion. CTAS raised its guidance for full-year EPS to be between $14.80 and $15, up from the previous estimate of between $14.35 and $14.65. It expects revenue to come between $9.57 billion and $9.60 billion, a substantial increase over the prior guidance.

Rival UniFirst Corporation (UNF) has underperformed CTAS. UNF stock has declined 12.1% in the past 52 weeks and 16.5% on a YTD basis.

With its recent outperformance compared to DOWI, analysts remain optimistic about CTAS’ prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering it, but the mean price target of $703.07 is a 1.1% discount to current levels.

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On the date of publication, Dipanjan Banchur 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 information please view the Barchart Disclosure Policy here.