Core Viewpoint - Cintas Corporation (CTAS) is set to release its fourth-quarter fiscal 2025 results on July 17, with expectations of strong revenue growth and margin improvement despite rising costs [1][6]. Group 1: Revenue Expectations - The Uniform Rental and Facility Services segment is projected to generate revenues of $2.02 billion, reflecting a 5.7% increase year-over-year [2]. - The First Aid and Safety Services segment is expected to achieve revenues of $313.1 million, indicating a 12.8% increase from the previous year [3]. - Overall, the Zacks Consensus Estimate for total revenues is $2.63 billion, which represents a 6.3% increase compared to the same quarter last year [6]. Group 2: Margin and Cost Analysis - Cintas is anticipated to show an improvement in operating margin by 50 basis points from the prior year, driven by operational execution and pricing strategies [5]. - Selling, general and administrative (SG&A) expenses are expected to rise to $714.4 million, marking a 7% increase from the year-ago level, which may impact overall profitability [7]. Group 3: Acquisitions Impact - The acquisitions of Paris Uniform Services and SITEX are expected to contribute positively to revenues and enhance market presence in key regions [4][9].

Core Viewpoint - Analysts project that Cintas (CTAS) will report quarterly earnings of $1.07 per share, reflecting a 7% year-over-year increase, with revenues expected to reach $2.63 billion, a 6.3% increase from the same quarter last year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [2] Key Metrics Analysis - Analysts estimate 'Total Revenue- Uniform Rental and Facility Services' will reach $2.02 billion, indicating a year-over-year change of +5.6% [4] - 'Total Revenue- Other' is projected to be $601.96 million, reflecting a +7.5% change from the year-ago quarter [4] - 'Revenue- All Other' is expected to reach $295.60 million, suggesting a +4.8% year-over-year change [4] Operating Income Projections - 'Revenue- First Aid and Safety Services' is forecasted to be $307.85 million, indicating a +10.9% year-over-year change [5] - 'Operating income- Uniform Rental and Facility Services' is expected to be $472.66 million, up from $432.95 million in the same quarter last year [5] - 'Operating income- First Aid and Safety Services' is projected at $71.95 million, compared to $63.33 million from the previous year [5] - 'Operating income- All Other' is estimated to arrive at $52.00 million, slightly up from $51.32 million year-over-year [6] Stock Performance - Cintas shares have experienced a -3% change in the past month, contrasting with a +4% move of the Zacks S&P 500 composite, with a Zacks Rank 2 (Buy) indicating expected outperformance in the near future [6]

Company Performance - BGSF has returned approximately 40.1% since the beginning of the calendar year, significantly outperforming the average gain of 4.1% in the Business Services group [4] - The Zacks Consensus Estimate for BGSF's full-year earnings has increased by 366.7% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Context - BGSF is part of the Business Services sector, which includes 260 individual stocks and currently holds a Zacks Sector Rank of 1 [2] - Within the Business - Services industry, which consists of 26 companies, BGSF ranks 37 in the Zacks Industry Rank, with the industry averaging a gain of 19.1% this year [6] Comparison with Peers - Cintas (CTAS), another stock in the Business Services sector, has returned 20.1% year-to-date and has a Zacks Rank of 2 (Buy) [4][5] - Both BGSF and Cintas are noted for their strong performance within the Business Services sector, attracting investor attention [7]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Cintas (CTAS) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth prospects beyond traditional metrics [2] - Cintas has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - Cintas has a historical EPS growth rate of 16.1%, with projected EPS growth of 10.9% for the current year, surpassing the industry average of 8.9% [5][4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Cintas is 14.6%, significantly higher than the industry average of 3.4%, indicating strong cash accumulation capabilities [6] - The annualized cash flow growth rate for Cintas over the past 3-5 years is 10.9%, compared to the industry average of 7.1% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Cintas have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month, suggesting positive momentum [9][8] Group 5: Investment Potential - Cintas has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it as a potential outperformer and a solid choice for growth investors [10][11]

Company Overview - Cintas Corporation (CTAS) was founded in 1968 and is headquartered in Cincinnati, OH, primarily providing corporate identity uniforms along with various business services [1] Investment Philosophy - The investment philosophy emphasizes the importance of compounding, dividend reinvesting, and patient investing through market fluctuations to achieve wealth accumulation [1] - The approach combines steady investment in high-quality assets with high-risk, high-reward opportunities, underappreciated turnaround plays, and transformative technologies [1] Personal Background of the Investor - The investor describes themselves as an amateur, self-taught in investing with no formal education in the field, but knowledgeable in identifying credible sources [1] - The investor has over 20 years of teaching experience at the college/university level and holds a PhD from Brunel University, indicating a strong academic background [1]

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]

Core Insights - Cintas Corporation (CTAS) is expected to benefit from strong segment performance, technology investments, and strategic acquisitions, making it an attractive stock for investors [1] Business Performance - Cintas has shown solid momentum across all segments, with strong growth from new customers and increased product penetration in the Uniform Rental and Facility Services segment [5] - The First Aid and Safety Services segment is experiencing rising demand for AED Rentals, eyewash stations, and WaterBreak products, contributing to overall performance [5] - Cintas forecasts a 7.7% year-over-year increase in organic revenues for fiscal 2025 [5] Expansion Efforts - Cintas is enhancing its market presence through acquisitions, including Paris Uniform Services and SITEX, which have strengthened its position in key regions [6] - The company spent $198.8 million on acquisitions in the first nine months of fiscal 2025 [6] Product Enhancement - Cintas is focused on enhancing its product portfolio and investing in technology, including SmartTruck technology for route optimization and garment-sharing technology [7] - Partnerships with Verizon and Google aim to provide technology solutions that enhance customer experience [7] Shareholder Returns - Cintas has a strong track record of returning cash to shareholders, with dividends totaling $453.7 million in the first nine months of fiscal 2025, a 14.4% increase year-over-year [9] - The company repurchased $678.1 million in shares during the same period, up from $468.1 million the previous year [9] - Cintas raised its quarterly dividend by 15.6% to $1.56 per share in July 2024, marking 40 consecutive years of dividend increases [9]

Core Insights - Investors are evaluating ABM Industries (ABM) and Cintas (CTAS) for potential value investment opportunities [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3] Valuation Metrics - ABM has a forward P/E ratio of 13.58, significantly lower than CTAS's forward P/E of 50.75, suggesting ABM may be undervalued [5] - The PEG ratio for ABM is 2.63, while CTAS has a PEG ratio of 3.85, indicating that ABM offers better value relative to its expected earnings growth [5] - ABM's P/B ratio stands at 1.79 compared to CTAS's P/B of 19.53, further supporting the notion that ABM is the superior value option [6] Value Grades - ABM has received a Value grade of B, while CTAS has a Value grade of D, highlighting the relative valuation strength of ABM [6]

Industry Overview - The business services industry is experiencing sustained expansion, with economic activity in the services sector growing for the 10th consecutive month as of April, indicated by a robust Services PMI remaining above the 50% threshold for the 56th time in 59 months, reflecting a post-pandemic recovery [1] - The industry is mature, with revenues, income, and cash flows now exceeding pre-pandemic levels, and it ranks in the top 19% of the Zacks Sector Rank, suggesting an expected outperformance over the next three to six months [3] Technological Impact - The rapid advancement and adoption of artificial intelligence and automation technologies are transforming the delivery of business services, promising enhanced efficiency and cost reduction while also presenting challenges such as workforce displacement and the need for continuous upskilling [2] Stock Recommendations - Five business services stocks with favorable Zacks Rank for investment are recommended: Cintas Corp. (CTAS), Thomson Reuters Corp. (TRI), Healthcare Services Group Inc. (HCSG), ZipRecruiter Inc. (ZIP), and Bright Horizons Family Solutions Inc. (BFAM), all currently carrying a Zacks Rank 2 (Buy) [4] Company Highlights Cintas Corp. (CTAS) - Cintas is well-positioned to benefit from strong momentum across its segments, with improved demand in its Uniform Rental and Facility Services segment and First Aid and Safety Services segment [7] - Expected revenue and earnings growth rates for CTAS are 7% and 10.8%, respectively, for the next year, with a 1.7% improvement in the Zacks Consensus Estimate for next-year earnings over the past 60 days [8] Thomson Reuters Corp. (TRI) - TRI operates as a content and technology company across various regions and segments, providing value-added information and technology in fields such as law, tax, accounting, and healthcare [9][10] - Expected revenue and earnings growth rates for TRI are 3.1% and 4.2%, respectively, for the current year, with a 1.3% improvement in the Zacks Consensus Estimate for current-year earnings over the past 30 days [10] Healthcare Services Group Inc. (HCSG) - HCSG provides management and operational services to healthcare facilities, making it a preferred choice for clients in the sector [11][12] - Expected revenue and earnings growth rates for HCSG are 5.1% and 58.5%, respectively, for the current year, with a 5% improvement in the Zacks Consensus Estimate for current-year earnings over the past seven days [12] ZipRecruiter Inc. (ZIP) - ZIP operates an online marketplace connecting job seekers and employers, offering various recruitment and hiring services [13] - Expected revenue and earnings growth rates for ZIP are 9% and 13%, respectively, for the next year, with a 3.8% improvement in the Zacks Consensus Estimate for next-year earnings over the past 30 days [14] Bright Horizons Family Solutions Inc. (BFAM) - BFAM provides employer-sponsored child care and early education solutions, managing child care centers for various organizations [15][16] - Expected revenue and earnings growth rates for BFAM are 7.6% and 18.4%, respectively, for the current year, with a significant 24.6% improvement in the Zacks Consensus Estimate for current-year earnings over the past 30 days [17]

Core Insights - The Zacks Business-Services industry is benefiting from economic strength, encouraging service activities, and the success of the work-from-home trend, creating a favorable demand environment for industry players [1] Industry Overview - The Zacks Business-Services industry includes companies providing a variety of services such as specialty rental, supply-chain management, and technology, with a current focus on operational efficiency through technology and digital transformation [2] - The pandemic has significantly altered business operations, prompting service providers to reassess strategic initiatives to capitalize on post-pandemic economic recovery [2] Future Trends - The services sector has shown strong activity, with the Services PMI remaining above 50% for 56 out of 59 months, indicating sustained expansion since the post-pandemic recovery [3] - Demand for services has remained stable, with revenues and cash flows exceeding pre-pandemic levels, allowing for stable dividend payouts [4] - The rapid advancement of AI and automation is transforming service delivery, promising efficiency but also presenting challenges such as workforce displacement [5] Market Performance - The Business-Services industry has outperformed the broader sector and the S&P 500 over the past 12 months, with a growth of 13% compared to the S&P 500's 10% [8] - The industry is currently valued at a forward P/E ratio of 27.35X, higher than the S&P 500's 20.65X and the sector's 22.33X, indicating a premium valuation [11] Company Highlights - **Bright Horizons Family Solutions Inc. (BFAM)**: Reported a strong start to fiscal 2025 with 7% revenue growth and over 50% adjusted EPS growth, supported by a resilient business model [15] - **Cintas Corporation (CTAS)**: Focused on operational excellence and customer-centric service, with a Zacks Rank of 2 and a 25% stock gain over the past year [16][27] - **APi Group Corporation (APG)**: Experienced a disciplined start to 2025 with a return to organic growth and a strong backlog, carrying a Zacks Rank of 2 and a 16% stock gain over the past year [20][22]