Shares of Cintas Corporation CTAS have jumped an impressive 13.5% in the past three months. Sound financial performance, healthy growth opportunities and sound shareholders friendly policies have added to CTAS’ attractiveness. It presently carries a Zacks Rank #2 (Buy).

Cintas provides multiple services to various businesses across North America. Products supplied include entrance mats, first aid and safety products, promotional products, restroom supplies, and others. The company is based in Cincinnati, OH, and has a market capitalization of $45.9 billion.

The company belongs to the Zacks Uniform and Related industry, which comes under the ambit of the Zacks Industrial Products sector. In the past three months, the industry has gained 11.5%. During the same timeframe, the S&P 500 has gained 4.7% and the sector has inched up 0.5%.

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Factors Influencing the Stock

Cintas reported impressive results in the first quarter of fiscal 2022 (ended Aug 31, 2021). The company’s earnings surpassed the Zacks Consensus Estimate by 12.68% and sales exceeded the same by 1.51%. On a year-over-year basis, the bottom line expanded 11.9% on higher sales generation, partially offset by an increase in costs and expenses.

Besides sound financial performance, strengthening uniform direct sales, first aid cabinet service, and fire protection services businesses have added to Cintas’ growth opportunities. Also, solid demand for personal protective equipment is beneficial for CTAS’ business in the healthcare and hygiene end markets. Focus on technological advancement, cost control and pricing actions, operational execution and debt reduction are other tailwinds.

For fiscal 2022 (ending May 2022), Cintas anticipates revenues to be $7.58-$7.67 billion, implying year-over-year increase of 7.2% (at the mid-point) from the previous year. Earnings per share are predicted to be $10.60-$10.90, suggesting growth of 5% (at the mid-point) year over year.

Cintas’ commitment toward returning values to shareholders via dividend payouts and share buybacks raises its appeal. Regarding dividends, the company is due to pay quarterly dividend of 95 cents per share in December.

The Zacks Consensus Estimate for Cintas’ earnings per share is pegged at $10.85 for fiscal 2022 and $12.05 for fiscal 2023 (ending May 2023), marking growth of 2.3% and 2% from the respective 60-day-ago figures. Such upward revisions in earnings estimates reflect healthy operating conditions for the company.

Cintas Corporation Price and Consensus

Cintas Corporation price-consensus-chart | Cintas Corporation Quote