Cintas (CTAS, $435.00) beats fiscal Q2 expectations
Cintas posted its fiscal second quarter results that surpassed Wall Street expectations.
The uniform rental company’s diluted earnings per share came in at $2.76, higher than the Street expectations of $2.65 per share.
Sales rose +9.4% from the year-ago quarter to $1.92 billion vs. $1.76 billion expected by analysts polled by FactSet.
CEO Todd Schneider said that EPS grew significantly notwithstanding U.S. inflation’s recent 39-year high and the company’s investment in labor to support revenue growth.
Looking ahead, Cintas projects fiscal 2022 diluted earnings per share in the range of $10.70 to $10.95, up from a prior forecast of $10.60 to $10.90. Analysts expect earnings per share of $10.90.
Cintas expects revenue to range between $7.63 billion and $7.7 billion, higher than its previous outlook of $7.58 billion to $7.67 billion. Analysts expect revenue of $7.65 billion.
The company mentioned that the guidance assumes “an uneven economic recovery" from Covid-19, and that it did not incorporate any costs related to Covid-19 government mandates.
CTAS in upward trend: price may jump up because it broke its lower Bollinger Band on April 26, 2023
CTAS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 37 cases where CTAS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 50 cases where CTAS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 30, 2023. You may want to consider a long position or call options on CTAS as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
CTAS moved above its 50-day moving average on April 27, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CTAS advanced for three days, in of 359 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for CTAS turned negative on May 23, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CTAS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CTAS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.210) is normal, around the industry mean (68.057). P/E Ratio (37.879) is within average values for comparable stocks, (120.192). Projected Growth (PEG Ratio) (2.917) is also within normal values, averaging (1.761). Dividend Yield (0.010) settles around the average of (0.038) among similar stocks. P/S Ratio (5.685) is also within normal values, averaging (75.927).
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of rental and servicing of uniforms and other garments
Industry MiscellaneousCommercialServices
CTAS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CTAS has been closely correlated with VRSK. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if CTAS jumps, then VRSK could also see price increases.
| Ticker / NAME | Correlation To CTAS | 1D Price Change % | ||
|---|---|---|---|---|
| CTAS | 100% | +0.12% | ||
| VRSK - CTAS | 69% Closely correlated | +0.24% | ||
| ALLE - CTAS | 68% Closely correlated | -2.19% | ||
| CPRT - CTAS | 68% Closely correlated | -1.13% | ||
| EFX - CTAS | 66% Closely correlated | -1.02% | ||
| TRI - CTAS | 62% Loosely correlated | +1.75% | ||
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