cintas is in uptrend, any minor pullbacks can be good

26. Juni 2017

Cintas (CTAS) designs, manufactures and implements corporate identity uniform programs. If you think stocks move in anticipation of future events, then this is actually good news for the U.S. economy and the overall stock market. Moreover, CTAS’ recent acquisition of G&K underscores my contention that Trump will rapidly increase government spending that initially begins with a gargantuan infrastructure plan. Beyond that, it also opens the lid for more spending. Cintas reported earnings at the end of September, and the company beat the Street on both earnings and revenues, and management was upbeat in their guidance. Looking ahead, the earnings consensus is improving, with analysts looking for $4.60 a share in the current fiscal year, up from $4.42 a share a month ago and $4.32 a share three months ago. In the prior quarter, uniforms were up 8.3% while ‘other’ businesses climbed .