Industry Overview - The U.S. Business Services Sector is supported by strong domestic economic fundamentals, encompassing companies that provide various services such as consulting, staffing, financial transactions, outsourcing, advertising, waste removal, building maintenance, technology services, and auction/valuation services [1] - The sector is mature with stable demand for services, and revenues, income, and cash flows are above pre-pandemic levels. It ranks in the top 25% of the Zacks Sector Rank, indicating expected outperformance over the next three to six months [2] Stock Recommendations - Five business services stocks with favorable Zacks Rank that have shown double-digit returns in the past three months are Duolingo Inc. (DUOL), Cintas Corp. (CTAS), Stantec Inc. (STN), Thomson Reuters Corp. (TRI), and FirstCash Holdings Inc. (FCFS). Each stock carries a Zacks Rank 2 (Buy) [3] Company Highlights Duolingo Inc. (DUOL) - Duolingo operates a mobile learning platform offering courses in 40 languages and provides a digital language proficiency assessment exam [6] - Expected revenue and earnings growth rates for the current year are 33.4% and 55.3%, respectively, with a 10.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [7][9] Cintas Corp. (CTAS) - Cintas is benefiting from solid momentum across its segments, with product penetration into existing customers aiding its Uniform Rental and Facility Services segment [8] - Expected revenue and earnings growth rates for the current year are 7% and 10.8%, respectively, with a 1.9% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [10] Stantec Inc. (STN) - Stantec provides professional consulting services in various fields including planning, engineering, architecture, and environmental sciences [11][12] - Expected revenue and earnings growth rates for the current year are 11.1% and 19.5%, respectively, with a 3.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [13] Thomson Reuters Corp. (TRI) - Thomson Reuters operates as a content and technology company across multiple regions, providing value-added information and technology in law, tax, accounting, and other fields [14][15] - Expected revenue and earnings growth rates for the current year are 3.2% and 4.2%, respectively, with a 1.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [15] FirstCash Holdings Inc. (FCFS) - FirstCash operates retail pawn stores in the U.S., Mexico, and Latin America, providing pawn loans and retail payment solutions [16][17] - Expected revenue and earnings growth rates for the current year are -0.2% and 17.3%, respectively, with a 2.7% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [18]

Key Takeaways CTAS sees solid segment momentum, led by new customer gains and strong product penetration. Acquisitions like Paris Uniform and SITEX boosted CTAS' regional presence and service capabilities. CTAS raised its dividend by 15.6% and repurchased $678.1M in shares in the first nine months of fiscal 2025.Cintas Corporation (CTAS) is poised to gain from strong segmental performance, investments in technology and accretive acquisitions. Handsome rewards to shareholders add to the stock’s appeal.Base ...

Core Viewpoint - O'Reilly Automotive is positioned as a strong investment opportunity, with solid business fundamentals and a proposed stock split aimed at increasing accessibility for investors and employees [3][4][11]. Group 1: Financial Performance - O'Reilly Automotive reported Q1 revenue of $4.14 billion, reflecting a 4% year-over-year increase, driven by a 3.6% comparable store gain [6]. - The company achieved a quarterly net income of $538 million, maintaining positive cash flow while returning capital to shareholders through share repurchases [8]. - Despite margin contraction due to increased cost pressures, the earnings remain robust enough to sustain the financial outlook [8]. Group 2: Stock Split and Market Impact - A proposed 15:1 stock split is set for a vote in May, aimed at making shares more accessible and potentially benefiting the broader market [3][4]. - Historical data suggests that stocks that undergo splits tend to outperform the market over time, indicating a positive outlook for O'Reilly post-split [4]. - Analysts have raised their price targets following the guidance update, with a consensus target of $1,412.06, suggesting a potential upside of 4.83% [10][11]. Group 3: Analyst Sentiment - The consensus among 18 analysts remains bullish, with all recent revisions indicating price target increases [11]. - The stock price is currently experiencing a pullback from record highs but shows signs of forming a bullish consolidation, with potential for further increases [12]. - Support is anticipated near the $1,300 level, which may be retested before reaching new highs [13].

It has been about a month since the last earnings report for Cintas (CTAS) . Shares have added about 1.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, es ...

After reaching an important support level, Cintas (CTAS) could be a good stock pick from a technical perspective. CTAS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving a ...

Cintas (CTAS) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, CTAS broke through the 200-day moving average, which suggests a long-term bullish trend.The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistan ...

Cintas (CTAS) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, CTAS broke through the 50-day moving average, which suggests a short-term bullish trend.The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.Shares o ...

Core Insights - Cintas entered takeover talks for UniFirst but backed out due to lack of meaningful interaction, leaving UniFirst's share price outlook uncertain [1][2] - UniFirst is viewed as a younger, less expensive alternative to Cintas, with potential for comparable returns over time, making it an attractive option for dividend growth investors [2] Financial Performance - UniFirst's Q2 revenue was $602.2 million, with diluted EPS of $1.31, both falling short of consensus forecasts, although revenue grew nearly 2% [3][4] - Operating income increased by 11.7%, net income by 19.6%, and EPS by 20.2%, despite a $0.09 impact from CRM and ERP-related costs [4] Segment Performance - The core Laundry operation grew by 1.5%, while the Specialty segment, including nuclear-related equipment, rose by 2.2%, indicating long-term growth potential in the nuclear industry [5] Guidance and Market Sentiment - Guidance is mixed, with lowered revenue forecasts due to FX headwinds but increased earnings outlook, although overall guidance is weaker than analysts' forecasts [6][7] - Analyst sentiment is bearish with a consensus rating of Reduce, but institutional buying has increased, indicating strong support for UniFirst [8][9] Capital Return Strategy - UniFirst has a dividend yield of 0.86%, aligning with Cintas' 0.75%, and has been actively buying back shares, reducing the count by 1% on average for Q2 [9] - The company is expected to sustain annual distribution increases and share buybacks, similar to Cintas, which could drive share price higher over time [10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-11399 Cintas Corporation (Exact name of registrant as specified in its charter) Washington 31-1188630 (State or Other Jurisdiction of Incorp ...

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Cintas is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for CTAS' full-year earnings has moved 1.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Investors ...