This Blue-Chip Stock Is a ‘Hold’ for the Long Term Thanks to Robust Momentum and Fundamentals

• Cintas (CTAS) demonstrates robust technical momentum.
• Shares are up roughly 25% over the past 6 months.
• CTAS maintains a 100% “Buy” technical opinion from Barchart.
• Despite analyst optimism and outstanding profitability, CTAS is rated a “Hold” for the long run due to valuation and consensus sentiment.

Today’s Featured Stock

Valued at $86.2 billion, Cintas (CTAS) provides businesses with a range of products and services that enhance their customers’ image and help keep their facilities and employees clean, safe, and looking their best. Its products and services include uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety and compliance training.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CTAS checks those boxes. The Trend Seeker issued a new “Buy” signal on Oct. 12. Since that signal, CTAS is up 6.13%.

Barchart’s Technical Indicators for Cintas

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Cintas hit a 52-week high of $219.16 on July 29.

• Cintas has a Weighted Alpha of 21.29.
• CTAS has a 100% “Buy” opinion from Barchart.
• The stock has gained 10.72% over the past 52 weeks.
• Cintas has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $218.49 with a 50-day moving average of $201.78.
• CTAS had 12 highs and gained 10.5% in the last month.
• 60-month beta of 0.92
• Relative Strength Index (RSI) is at 74.36.
• There’s a technical support level around $214.46.

Don’t Forget the Fundamentals

• $86.2 billion market capitalization.
• 41.38x trailing price-earnings ratio.
• Dividend yield of 0.96%.
• Revenue is expected to grow 8.71% this year and another 7.53% next year.
• Earnings are estimated to increase by 12.15% this year and an additional 11.20% next year.

Analyst and Investor Sentiment on Cintas

• Wall Street analysts followed by Barchart give the stock 9 “Strong Buy,” 9 “Hold,” 1 “Moderate Sell,” and 1 “Strong Sell” opinion with price targets from $181 to $250.
• Value Line rates the stock “Highest” with price targets between $205 and $275.
• Morningstar thinks the stock is fairly valued.
• CFRA’s MarketScope rates the stock as “Hold.”
• 23,020 investors are following the stock on Seeking Alpha, which rates it as a “Hold.”
• TipRanks’ analysts have a consensus of $225, which is above yesterday’s close.
• Short interest is 2.91% of the float with 6.66 days to cover the float.

The Bottom Line on Cintas

The company displays outstanding profitability and enjoys consistent analyst optimism. This is a “Hold” for the long run.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.