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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cintas Corporation as such a stock due to the following factors:
- CTAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.8 million.
- CTAS has traded 996,701 shares today.
- CTAS traded in a range 226.4% of the normal price range with a price range of $2.75.
- CTAS traded below its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on CTAS:
Cintas Corporation provides corporate identity uniforms and related business services for approximately 1 million businesses primarily in North America, Latin America, Europe, and Asia. The stock currently has a dividend yield of 1.3%. CTAS has a PE ratio of 22.6. Currently there are 3 analysts that rate Cintas Corporation a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Cintas Corporation has been 588,200 shares per day over the past 30 days. Cintas has a market cap of $7.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.78 and a short float of 8.3% with 8.25 days to cover. Shares are up 3.5% year-to-date as of the close of trading on Friday.
rates Cintas Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- CTAS's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 7.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Commercial Services & Supplies industry and the overall market, CINTAS CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- 45.42% is the gross profit margin for CINTAS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.41% is above that of the industry average.
- You can view the full Cintas Corporation Ratings Report.