Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Cintas Corporation ( CTAS) as a new lifetime high 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 $39.2 million.
- CTAS has traded 705,673 shares today.
- CTAS is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CTAS with the Ticky from Trade-Ideas. See the FREE profile for CTAS NOW at Trade-Ideas 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 1.4%. CTAS has a PE ratio of 21.8. 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 532,400 shares per day over the past 30 days. Cintas has a market cap of $6.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.71 and a short float of 8% with 10.23 days to cover. Shares are up 37.6% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Cintas Corporation as a buy. 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, solid stock price performance, growth in earnings per share and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CTAS has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 31.57% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CTAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CINTAS CORP has improved earnings per share by 5.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CINTAS CORP increased its bottom line by earning $2.52 versus $2.27 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $2.52).
- You can view the full Cintas Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.