Here's Why You Should Consider Investing in Cintas Stock Now

Cintas Corporation CTAS is well-poised to benefit from strength across its business, acquisitions, focus on improving the product line and operational excellence. The company remains focused on investing in growth opportunities and solidifying its long-term market position.CTAS has a market capitalization of $84 billion. In the year-to-date period, it has gained 11.8% compared with the industry’s 9.3% growth. CTAS currently carries a Zacks Rank #2 (Buy).YTD Price Performance of CTASImage Source: Zacks Investment ResearchFactors Favoring CintasBusiness Strength: Cintas has been experiencing strength in its Uniform Rental and Facility Services segment, driven by strong growth in new customers and penetration of additional products and services into existing customers. The segment’s revenues rose 7.5% year over year in the second quarter of fiscal 2025 (ended November 2024).Increasing demand for AED Rentals, eyewash stations and WaterBreak products is boosting the First Aid and Safety Services segment’s performance. Revenues from the segment climbed 12.4% year over year in the fiscal second quarter.Driven by strength across its businesses, Cintas has provided a bullish forecast for fiscal 2025. The company expects revenues to be in the range of $10.255-$10.32 billion, higher than the earlier predicted band of $10.22-$10.32 billion. The mid-point of the guidance, $10.28 billion, indicates year-over-year growth of 7.1%.Acquisition Benefits: The company remains focused on acquiring businesses to gain access to new customers and product lines. CTAS’ acquisition of Paris Uniform Services (in March 2024) boosted its presence in Pennsylvania, New York, Maryland and West Virginia. Also, the buyout of SITEX (in February 2024) has strengthened its market position in the central Midwest region. In fiscal 2024 (ended May 2024), acquisitions boosted revenue growth by 0.4%.Business Initiatives: Cintas' focus on the enhancement of its product portfolio, along with investments in technology and automation to improve efficiencies in existing facilities, should continue to drive its performance. For instance, the company’s investment in SmartTruck technology continues to provide route optimization and improved efficiencies. Also, it has been investing in garment-sharing technology and SAP systems for a while now.Shareholder-Friendly Policies: It remains committed to rewarding its shareholders through dividend payouts and share buybacks. In the first six months of fiscal 2025, the company paid dividends worth $295.6 million, up approximately 15.5% year over year. The amount spent on share buybacks totaled $651.5 million compared with $423.1 million in the year-ago period.Also, in fiscal 2024, dividend payments totaled $530.9 million, up 18% year over year. Cintas repurchased shares worth $700 million in the same period, up 75.5% year over year.Other Stocks to ConsiderOther top-ranked companies are discussed below.RBC Bearings RBC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company delivered a trailing four-quarter average earnings surprise of 5%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2025 (ending March 2025) earnings has increased 1%.SPS Commerce SPSC currently carries a Zacks Rank of 2. SPSC delivered a trailing four-quarter average earnings surprise of 9.1%.In the past 60 days, the Zacks Consensus Estimate for SPS Commerce’s 2025 earnings has decreased 2%.Applied Industrial Technologies AIT presently carries a Zacks Rank of 2. AIT delivered a trailing four-quarter average earnings surprise of 5.3%.In the past 60 days, the consensus estimate for AIT’s fiscal 2025 earnings has inched up 1.1%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report SPS Commerce, Inc. (SPSC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks