Cintas (CTAS) is set to benefit from strength across its businesses, acquired assets and shareholder-friendly policies.
Here is how Cintas (CTAS) and Eaton (ETN) have performed compared to their sector so far this year.
Economic profit is a measure of how much value a company is able to generate. It is the difference between ROIC and the cost of capital. Cintas can raise capital at a cost of 9.53% and deploy that capital in the business and earn 35.71%. For every dollar you give Cintas, they turn it into three. Using an unbiased measure of the opportunity cost of the investment, Cintas offers a total return of more than double the opportunity cost.
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Here is how Cintas (CTAS) and Eaton (ETN) have performed compared to their sector so far this year.
Cintas (CTAS) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Cintas (CTAS) benefits from strength in its businesses, focus on operational executions and shareholder-friendly policies. Escalating operating expenses remain a concern.