Cintas Corporation (CTAS) Soars to 52-Week High, Time to Cash Out?

Core Viewpoint - Cintas shares have shown strong performance, increasing 8.7% over the past month and reaching a 52-week high of $773.95, with a year-to-date gain of 26.8% compared to the Zacks Industrial Products sector's 9% and the Zacks Uniform and Related industry's 25.7% [1] Financial Performance - Cintas has consistently exceeded earnings expectations, reporting EPS of $3.99 against a consensus estimate of $3.8 in its last earnings report on July 18, 2024, and beating revenue estimates by 0.23% [2] - For the current fiscal year, Cintas is projected to achieve earnings of $16.62 per share on revenues of $10.27 billion, reflecting a 9.7% increase in EPS and a 7% increase in revenues. For the next fiscal year, expected earnings are $18.26 per share on $10.98 billion in revenues, indicating year-over-year changes of 9.89% and 6.92%, respectively [3] Valuation Metrics - Cintas currently trades at a valuation of 46 times the current fiscal year EPS estimates, which is above the peer industry average of 35.4 times. On a trailing cash flow basis, it trades at 38.5 times compared to the peer group's average of 26.4 times. The stock has a PEG ratio of 4.07, suggesting it is not among the top value stocks [7] - The stock has a Value Score of D, while its Growth and Momentum Scores are A and C, respectively, resulting in a VGM Score of B [6][5] Zacks Rank - Cintas holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The combination of a Zacks Rank of 2 and Style Scores of A or B indicates that Cintas shares may have further upside potential in the near term [9]